Shenandoah South - 1H well IP60 Day Flow Rates of 3.0 MMcf/d (normalised to 6.0 MMcf/d)
26/03/2024 07:00
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Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Shenandoah South - 1H well IP60 Day Flow Rates of 3.0 MMcf/d (normalised to
6.0 MMcf/d)
26 March 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 IP60 flow rate of 3.0 MMcf/d (normalised to 6.0 MMcf/d over 1,000
metres).
Highlights are as follows:
* The SS-1H well in EP117 achieved an average 60-day initial production (IP60)
flow rate of 3.0 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 6.0 MMcf/d over 3,281-feet (1,000 metres).
* Exit rate trajectory after the 60 days of flow testing showed a steady low
declining curve at 2.76 MMcf/d over the stimulated length (normalised at 5.52
MMcf/d per 3,281 feet) and stable reservoir back pressure of 530 psi.
* The SS-1H IP60 flow test indicates that future development wells with
lateral length of 10,000-foot (3,000 metres) may be capable of delivering
average rates of 18.4 MMcf/d over the first 60 days of production.
* Results to date confirm that this region measuring more than 1 million gross
acres below 8,850 feet (2,700 metres) is one of the best locations in the
Beetaloo Basin to commence pilot development activities.
* Flow testing of the SS-1H well will continue for the next 30 days to achieve
average IP90 flow rates to better determine the well’s estimated ultimate
recovery per well (EUR). IP90 flow rate results are expected to be announced
in late April 2024.
* The Beetaloo JV Partners of Falcon and Tamboran B2 Pty Limited will continue
to progress development plans for the proposed 40 MMcf/d Pilot Project at the
Shenandoah South location. The project is expected to require six 10,000-foot
development wells initially to achieve plateau production of 40 MMcf/d.
Drilling of the first of these wells is planned to commence in Q2 2024 and the
JV is targeting first gas in H1 2026.
* At the end of February 2024, Falcon held ~US$5 million in cash and has the
benefit of a further A$16.67 million gross (~US$2.5 million net Falcon) carry
to support immediate activities.
* Falcon is funded to commence drilling of the initial two wells in the
program and will evaluate opportunities to support funding the remaining
capital commitments to reach first production, including issuance of equity
and/or debt, evaluation of pre-payment for gas from the proposed pilot project
and potential farm-down opportunities.
Philip O’Quigley, CEO of Falcon commented:
“The SS-1H IP60 flow rate announced today of 3.0 MMcf/d, normalised to 6.0
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: Shenandoah South-1 DSU – 20,480 acres
Company Interest
Tamboran (B2) Pty Limited 77.5%
Falcon Oil and Gas Australia Limited 22.5%
Total 100.0%
Table 2: Breakdown of the SS-1H flow result
SS-1H Rates (MMcf/d) Actual (501m; 1,644 ft) Normalized (1,000m; 3,281 ft) Normalized (3,048m; 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
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 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 IP60 flow rate of 3.0 MMcf/d over
the 501 metres 10 stage stimulated length within the Amungee Member B-Shale,
to the exit rate trajectory after the 60 days of flow testing showing a steady
low declining curve over the stimulated length and stable reservoir back
pressure of 530 psi, that the IP60 flow test results indicates that future
development wells may be capable of delivering average rates of 18.4 MMcf/d,
that this region is one of the best locations in the Beetaloo Basin to
commence pilot development activities, the flow testing of the SS-1H well
continuing for the next 30 days, IP90 flow results expected to be announced in
late April 2024, the JV continuing to progress development plans for the
proposed 40 MMcf/d Pilot Project at the Shenandoah South location, the
development of six 10,000-foot development wells initially to achieve plateau
production of 40 MMcf/d, drilling of the first of these wells planned to
commence in Q2 2024 and the targeting of first gas in H1 2026, funding to
commence drilling of the initial two wells in the program and evaluation of
opportunities to support funding the remaining capital commitments to reach
first production, including issuance of equity and/or debt, evaluation of
pre-payment for gas from the proposed Pilot Project and potential farm-down
opportunities
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