Operational Update including the Successful Drilling of Amungee NW 3H Horizontal Well
16/10/2023 07:00
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Falcon Oil & Gas Ltd.
(“Falcon”)
Operational Update including the Successful Drilling of Amungee NW 3H
Horizontal Well
16 October 2023 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce that drilling operations on the Amungee NW 3H (“A3H”) well in
EP98 have been successfully completed with Falcon Oil & Gas Australia
Limited’s joint venture partner, Tamboran (B2) Pty Limited.
Details of operations are as follows:
* The A3H well was drilled, cased and cemented to a total measured depth
(“TD”) of 3,837 metres, including a horizontal section of 1,100 metres in
the Amungee Member B-shale.
* The well intersected the Amungee Member B-shale at a total vertical depth
(“TVD”) of 2,272 metres and encountered significant gas shows, in line
with pre-drill expectations.
* Drilling took 17.9 days, at an average rate of 214 metres per day, and at 20
days faster than the Amungee 2H (“A2H”) well, the Helmerich & Payne, Inc.
(H&P), (NYSE: HP), super-spec FlexRig® Flex 3 Rig delivered the anticipated
drilling efficiencies.
* A stimulation program is planned for the second quarter of 2024, following
the Northern Territory wet season.
* Total costs for the drilling and cementing of the A3H well was A$12.6
million. Cost reductions of A$1.8 million compared to A2H, demonstrates the
application of learnings from previously drilled wells and the improvement in
drilling technology with the H&P super-spec FlexRig® Flex 3 Rig.
Shenandoah South 1H (“SS1H”) Update
Stimulation activities for the SS1H well in EP117 are on track to commence in
November 2023 with IP30 flow rates anticipated in early 2024.
Appointment of Tennyson Securities
Falcon is pleased to announce the appointment of Tennyson Securities as joint
broker, alongside Cavendish Securities Plc (“Cavendish”) Falcon’s
current broker. Cavendish will continue as Falcon’s nominated advisor.
Philip O’Quigley, CEO of Falcon commented:
“We are delighted to have successfully completed the A3H horizontal well
section and are very encouraged by the drilling days achieved by H&P in
reaching TD at A3H and the cost reductions recorded relative to A2H. We now
look forward to the next phase of operations in the Beetaloo with the
stimulation and extended production testing of SS1H commencing in November. We
will continue to update the market as results become available.”
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 Securities plc (NOMAD & Joint Broker)
Neil McDonald / Derrick Lee +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 Head of Technical Operations. 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, South Africa and Hungary. Falcon Oil &
Gas Ltd is incorporated in British Columbia, Canada and headquartered in
Dublin, Ireland with a technical team based in Budapest, Hungary.
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 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 TD and TVD reached; the
stimulation program planned for the A3H well for the second quarter of 2024
and stimulation activities for the SS1H well expected to commence in November
2023 with flow rates anticipated for early 2024. 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.
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