REG-Falcon Oil & Gas Ltd. - Beetaloo Operational Update – Stimulation Campaign & Remaining Shenandoah South Pilot Project

Falcon Oil & GasAnnouncement

14/05/2025 07:00

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Falcon Oil & Gas Ltd.

Beetaloo Operational Update – Stimulation Campaign & Remaining Shenandoah
South Pilot Project

14 May 2025 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) notes the press
releases from Tamboran Resources Corporation (NYSE: TBN, ASX: TBN)
(“Tamboran”) issued on 13 May 2025.

Tamboran’s announcements confirmed:
* the commencement of flow testing at the Shenandoah S2-2H ST1 (“SS-2H
ST1”) well in the Beetaloo Sub-basin, Northern Territory, Australia;
* agreements entered to complete a US$55.4 million private placement and a
US$15 million asset sale (at US$150/acre) to provide Tamboran with necessary
funding to drill three wells commencing in mid-2025 and stimulate four wells
(including the Shenandoah S2-4H well drilled late last year) in a single
campaign planned for late 2025 / 1H 2026 subject to JV approval; and
* the finalisation of the checkerboard of the joint acreage position across
exploration permits 76, 98 and 117 between Tamboran and Daly Waters Energy, LP
(“DWE”).
Key points to note:

SS-2H ST1
* Flow testing of SS-2H ST1 has commenced after a longer soaking period
following analysis of wells across the Beetaloo Sub-basin, allowing water to
imbibe into the rock, increasing the formation’s relative permeability to
gas.
* The IP30 flow test is expected to be announced in June 2025 and testing is
planned to continue for a full 90-days, subject to weather or unforeseen
events.
Checkerboard
* Tamboran and DWE have signed a binding agreement to finalise the
checkerboard of their joint acreage across the three exploration permits: EP
76, 98 and 117.
* Both parties will hold operated working interest areas at 77.5% (except in
the two smaller areas which are the subject of the sale of 100,000 acres by
Tamboran to DWE), with Falcon Oil & Gas Australia Limited (“Falcon”)
having the remaining 22.5% non-operating interest across the wider acreage.
* Ownership of the proposed northern Pilot Area containing 20,309 acres, the
focus for initial gas production in the Northern Territory, remains unchanged
with Falcon at 5%, Tamboran (operator) 47.5% and DWE 47.5%.
* Ownership of the anticipated expansion into the southern Pilot Area
containing 20,309 acres will be Falcon at 22.5%, Tamboran 38.75% and DWE
(operator) 38.75%.
* Falcon is uniquely placed as the only party with an interest across all
checkboard pieces.
Operator Funding for the completion of the Shenandoah South Pilot Project
* Tamboran has confirmed that following the completion of its fundraising, it
expects to be fully funded to drill and complete the remaining three wells
required to deliver first gas under the Shenandoah South Pilot Project, with
first gas planned for mid-2026.
* Falcon has opted to reduce its interest in these three remaining wells to be
drilled to zero %.
Valuation of acreage
* DWE and Tamboran have entered into a binding agreement whereby DWE will
acquire a non-operating and non-controlling interest across 100,000 acres
within two areas of Tamboran’s post-checkerboard acreage position for a
consideration of US$15 million, equating to US$150/acre.
* The US$150/acre would translate to a valuation of Falcon’s acreage at a
minimum of US$150 million.
Investor Meet

Philip O’Quigley, Falcon’s CEO, will conduct a Q&A via the Investor Meet
Company platform on 21 May 2025 at 4:00pm (London time) to discuss this press
release and comment on the related press releases issued by Tamboran
yesterday. The event is open to all existing and potential shareholders.
Questions can be submitted pre-event via your Investor Meet Company dashboard
up until 9.00am (London time) on 20 May 2025 or at any time during the live
presentation.

Investors can sign up to Investor Meet Company for free and add to meet Falcon
Oil & Gas Ltd. via:
https://www.investormeetcompany.com/falcon-oil-gas-ltd/register-investor

Investors who already follow Falcon Oil & Gas Ltd. on the Investor Meet
Company platform will automatically be invited.

Philip O’Quigley, CEO of Falcon commented:

“We look forward to updating the market on the SS-2H ST1 IP30 flow test
results as soon as they become available.

We are extremely encouraged by the read-through valuation on Falcon’s net 1
million acres from the sale of acreage by Tamboran to DWE and we welcome the
completion of the checkerboard where Falcon is uniquely placed as being the
only company with an interest in each of the checkerboard pieces.

Reducing our participation in the next three wells has an insignificant impact
on our overall net acres in the Beetaloo which remains at circa 1 million
acres and our interest across the wider acreage remains at 22.5%. This
demonstrates the optionality and financial engineering afforded by the
drilling and spacing units, which enable Falcon to strategically and
efficiently deploy its capital. This reduction in our participation in the
next three wells significantly reduces our 2025 capital expenditure whilst at
the same time leaving us very well positioned to capture the overall success
of the Beetaloo.

Lastly, we look forward to working with DWE as an additional operator in the
Beetaloo. “
                                                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 & Broker) 
 Neil McDonald / Adam Rae  +44 131 220 9771  



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 (EP 76, 98 and 117)   

Proposed northern Pilot Project Area (gross acreage of 20,309)

 Company                                                Interest  
 Falcon Oil & Gas Australia Limited (Falcon Australia)  5.0%      
 Tamboran (B2) Pty Limited                              95.0%     
 Total                                                  100.0%    



Proposed southern Pilot Project Area (gross acreage of 20,309)

 Company                                                Interest  
 Falcon Oil & Gas Australia Limited (Falcon Australia)  22.5%     
 Tamboran (B2) Pty Limited                              77.5%     
 Total                                                  100.0%    



Areas excluding the northern and southern Pilot Project Areas

 Company                                                Interest  
 Falcon Oil & Gas Australia Limited (Falcon Australia)  22.5%     
 Tamboran (B2) Pty Limited                              77.5%     
 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 Corporation and Daly Waters Energy, LP.

Tamboran Resources Corporation is a natural gas company listed on the NYSE
(TBN) and ASX (TBN). 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.

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”, “anticipated”, “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, details on the commencement of flow testing at SS-2H ST1 and
the associated IP30 results and the plan to continue for 90 days; Falcon’s
ownership in the northern and southern pilot areas and remaining acreage
following the execution of the checkerboard; Falcon’s election to reduce its
interest to zero for the remaining three wells in the Pilot and it
significantly reducing 2025 capital expenditure; and the readthrough acreage
valuation for Falcon based on the DWE Tamboran acreage sale.

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/or
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