Falcon Oil & Gas - Shenandoah South-1H well IP90 Day Flow Rates of 2.9 MMcf/d (normalised to 5.8 MMcf/d)
26/04/2024 07:00
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Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Shenandoah South-1H well IP90 Day Flow Rates of 2.9 MMcf/d (normalised to 5.8
MMcf/d)
26 April 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce that the Shenandoah South 1H (SS-1H) well in EP117 achieved above
commercial IP90 flow rate of 2.9 MMcf/d (normalised to 5.8 MMcf/d over 1,000
metres).
Highlights are as follows:
* The SS-1H well in EP117 achieved an average 90-day initial production (IP90)
flow rate of 2.9 million cubic feet per day (MMcf/d) over the 1,644-foot (501
metres), 10 stage stimulated length within the Amungee Member B-Shale,
normalised to 5.8 MMcf/d over 3,281-feet (1,000 metres).
* On completion of the IP90 flow test, the well was delivering 2.7 MMcf/d,
normalized to 5.4 MMcf/d over 3,281-feet (1,000 metres) at a pressure of 518
psi prior to being shut-in.
* The SS-1H flow test indicates that future development wells with lateral
lengths of 10,000 feet may be capable of delivering average rates of 17.8
MMcf/d over the first 90 days of production.
* The SS-1H well has demonstrated steady gas flows and decline profiles in
line with some of the most prolific regions of the Marcellus Shale in the US.
* The well will now be shut in and suspended as a potential future production
well.
* The Beetaloo Joint Venture Partners (BJV) of Falcon Australia and Tamboran
B2 Pty Limited will continue to undertake Front End Engineering and Design
(FEED) studies on the proposed Shenandoah South Pilot Project. The Company
expects to take Final Investment Decision (FID) in mid-2024, subject to
funding and key stakeholder approvals.
* The strong SS-1H result has further validated the decision to progress with
the pilot project in the Shenandoah South region within the deep shale in the
Beetaloo West . The 1 million acres of deep shale in the Beetaloo West, at a
similar depth to SS-1H, has the potential to deliver the BJV’s production
ambition of 2 Bcf/d (equivalent to more than 13.0 million tonnes per annum of
LNG export capacity) for 40 years from a single landing zone.
* At the end of March 2024, Falcon held ~US$4.3 million in cash, US$4.9m was
raised in April 2024 as part of an equity raise and US$4m for the sale of
overriding royalty interests (ORRIs). Falcon Australia also has the benefit of
a net carry of a further US$2.5 million.
* Falcon is now fully funded for it’s share of the drilling and testing of
the initial two wells in the program together with the acquisition and
processing of the proposed 3D programme (330km(2)).
Philip O’Quigley, CEO of Falcon commented:
“The SS-1H IP90 flow rate announced today of 2.9 MMcf/d, normalised to 5.8
MMcf/d over 1,000 metres, demonstrates a steady low declining curve while
holding its downhole pressure. This augurs well for the initial development in
the Shenandoah South area as these rates continue to track average flow rates
seen in the Marcellus Shale basin in the US.”
Table 1: Breakdown of the SS-1H flow result
Rates (MMcf/d) Actual (501m, 1,644 ft) Normalized (1,000m, 3,281 ft) Normalized (10,000 ft)
Peak rate 12.9 N/A N/A
Average IP30 flow rate 3.2 6.4 19.5
IP30 exit rate 2.9 5.8 17.6
Average IP60 flow rate 3.0 6.0 18.4
IP60 exit rate 2.8 5.5 16.8
Average IP90 flow rate 2.9 5.8 17.8
IP90 exit rate 2.7 5.4 16.4
Source: Tamboran
Ends.
CONTACT DETAILS:
Falcon Oil & Gas Ltd. +353 1 676 8702
Philip O’Quigley, CEO +353 87 814 7042
Anne Flynn, CFO +353 1 676 9162
Cavendish Capital Markets Limited (NOMAD & Joint Broker)
Neil McDonald / Adam Rae +44 131 220 9771
Tennyson Securities (Joint Broker)
Peter Krens +44 20 7186 9033
This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas
Ltd’s Technical Advisor. Dr. Bada obtained his geology degree at the
Eötvös L. University in Budapest, Hungary and his PhD at the Vrije
Universiteit Amsterdam, the Netherlands. He is a member of AAPG.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil & gas company engaged in the
exploration and development of unconventional oil and gas assets, with the
current portfolio focused in Australia. Falcon Oil & Gas Ltd is incorporated
in British Columbia, Canada and headquartered in Dublin, Ireland..
Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil & Gas
Ltd.
For further information on Falcon Oil & Gas Ltd. Please visit
www.falconoilandgas.com
About Beetaloo Joint Venture (“BJV”) (EP 76, 98 and 117)
EP 98/117 interests
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil & Gas Australia Limited (Falcon Australia) 22.5%
Total 100.0%
Shenandoah South-1 DSU – 20,480 acres
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil & Gas Australia Limited (Falcon Australia) 22.5%
Total 100.0%
Shenandoah South-2 DSU – 51,200 acres
Company Interest
Tamboran (B2) Pty Limited 95.0%
Falcon Oil & Gas Australia Limited (Falcon Australia) 5.0%
Total 100.0%
About Tamboran (B2) Pty Limited
Tamboran (B1) Pty Limited (“Tamboran B1”) is the 100% holder of Tamboran
(B2) Pty Limited, with Tamboran B1 being a 50:50 joint venture between
Tamboran Resources Limited and Daly Waters Energy, LP.
Tamboran Resources Limited, is a natural gas company listed on the ASX (TBN)
and U.S. OTC markets (TBNNY). Tamboran is focused on playing a constructive
role in the global energy transition towards a lower carbon future, by
developing the significant low CO(2) gas resource within the Beetaloo Basin
through cutting-edge drilling and completion design technology as well as
management’s experience in successfully commercialising unconventional shale
in North America.
Bryan Sheffield of Daly Waters Energy, LP is a highly successful investor and
has made significant returns in the US unconventional energy sector in the
past. He was Founder of Parsley Energy Inc. (“PE”), an independent
unconventional oil and gas producer in the Permian Basin, Texas and previously
served as its Chairman and CEO. PE was acquired for over US$7 billion by
Pioneer Natural Resources Company (“Pioneer”), itself a leading
independent oil and gas company and with the PE acquisition became a Permian
pure play company. Pioneer has a current market capitalisation of c. US$60
billion.
Advisory regarding forward looking statements
Certain information in this press release may constitute forward-looking
information. Any statements that are contained in this news release that are
not statements of historical fact may be deemed to be forward-looking
information. Forward-looking information typically contains statements with
words such as “may”, “will”, “should”, “expect”, “intend”,
“plan”, “anticipate”, “believe”, “estimate”, “projects”,
“dependent”, “consider” “potential”, “scheduled”,
“forecast”, “outlook”, “budget”, “hope”, “suggest”,
“support” “planned”, “approximately”, “potential” or the
negative of those terms or similar words suggesting future outcomes. In
particular, forward-looking information in this press release includes, but is
not limited to, information relating to the SS-1H well in EP117 achieving an
average IP90 flow rate of 2.9 MMcf/d over the 1,644-foot (501 metres), 10
stage stimulated length within the Amungee Member B-Shale, normalised to 5.8
MMcf/d over 3,281-feet (1,000 metres), the well delivering 2.7 MMcf/d,
normalized to 5.4 MMcf/d over 3,281-feet (1,000 metres) on completion at a
pressure of 518 psi prior to being shut-in, indicators that future development
wells with lateral lengths of 10,000 feet may be capable of delivering average
rates of 17.8 MMcf/d over the first 90 days of production, SS-1H results being
in line with some of the most prolific regions of the Marcellus Shale in the
US, the well being shut in and suspended as a potential future production
well, the BJV continuing to undertake FEED studies on the proposed Shenandoah
South Pilot Project, the FID to be taken in mid-2024, subject to funding and
key stakeholder approvals, the strong SS-1H result further validating the
decision to progress with the pilot project in the Shenandoah South region
within the deep shale in the Beetaloo West . The 1 million acres of deep shale
in the Beetaloo West, at a similar depth to SS-1H, having the potential to
deliver the BJV’s production ambition of 2 Bcf/d (equivalent to more than
13.0 million tonnes per annum of LNG export capacity) for 40 years from a
single landing zone, funding for it’s share of the drilling and testing of
the initial two wells in the program together with the acquisition and
processing of the proposed 3D programme (330km(2)).
This information is based on current expectations that are subject to
significant risks and uncertainties that are difficult to predict. The risks,
assumptions and other factors that could influence actual results include
risks associated with fluctuations in market prices for shale gas; risks
related to the exploration, development and production of shale gas reserves;
general economic, market and business conditions; substantial capital
requirements; uncertainties inherent in estimating quantities of reserves and
resources; extent of, and cost of compliance with, government laws and
regulations and the effect of changes in such laws and regulations; the need
to obtain regulatory approvals before development commences; environmental
risks and hazards and the cost of compliance with environmental regulations;
aboriginal claims; inherent risks and hazards with operations such as
mechanical or pipe failure, cratering and other dangerous conditions;
potential cost overruns, drilling wells is speculative, often involving
significant costs that may be more than estimated and may not result in any
discoveries; variations in foreign exchange rates; competition for capital,
equipment, new leases, pipeline capacity and skilled personnel; the failure of
the holder of licenses, leases and permits to meet requirements of such;
changes in royalty regimes; failure to accurately estimate abandonment and
reclamation costs; inaccurate estimates and assumptions by management and
their joint venture partners; effectiveness of internal controls; the
potential lack of available drilling equipment; failure to obtain or keep key
personnel; title deficiencies; geo-political risks; and risk of litigation.
Readers are cautioned that the foregoing list of important factors is not
exhaustive and that these factors and risks are difficult to predict. Actual
results might differ materially from results suggested in any forward-looking
statements. Falcon assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in the forward looking-statements unless and until required by
securities laws applicable to Falcon. Additional information identifying risks
and uncertainties is contained in Falcon’s filings with the Canadian
securities regulators, which filings are available at www.sedarplus.com,
including under "Risk Factors" in the Annual Information Form.
Any references in this news release to initial production rates are useful in
confirming the presence of hydrocarbons; however, such rates are not
determinative of the rates at which such wells will continue production and
decline thereafter and are not necessarily indicative of long-term performance
or ultimate recovery. While encouraging, readers are cautioned not to place
reliance on such rates in calculating the aggregate production for Falcon.
Such rates are based on field estimates and may be based on limited data
available at this time.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release