Spudding of Amungee NW-3H in Exploration Permit 98
25/09/2023 07:00
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Falcon Oil & Gas Ltd.
(“Falcon”)
Spudding of Amungee NW-3H in Exploration Permit 98
25 September 2023 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the spudding of the Amungee NW-3H (“A3H”) horizontal well in
exploration permit 98 with a H&P (Helmerich & Payne) super-spec FlexRig® Flex
3 Rig in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil
& Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited
(“Tamboran B2”).
The A3H well is the second of the two well programme in 2023 and will target
the Amungee Member B-Shale at an estimated depth of 2,450 metres TVD (total
vertical depth). The A3H well is located on the same well pad as the Amungee
NW-2H well in exploration permit (“EP”) 98 and is approximately 60
kilometres north of the Shenandoah South 1H well (“SS1H”) that we
completed the drilling of last week.
Drilling activity is expected to take approximately 25 days, including a
1,000-metre horizontal section. A stimulation program is planned for the
second quarter of 2024, following the end of the Northern Territory wet
season.
Falcon will participate in the A3H well at its full participating interest of
22.5% which, under the terms of the Joint Operating Agreement, will create a
drilling spacing unit (“DSU”) of 20,480 acres.
Philip O’Quigley, CEO of Falcon commented:
“The spudding of the A3H horizontal well, just a week after drilling the
SS1H well , is an exciting acceleration in the appraisal of the Beetaloo
Sub-basin. We are confident that learnings and results from the previous two
Amungee wells drilled in EP 98, together with the drilling of the SS1H well
will have a positive impact on the outcome of the results from this A3H well.
Preparations for the stimulation program of the SS1H well are ongoing and we
look forward to updating the market in due course as soon as those operations
commence.”
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
C avendish Securities plc (NOMAD & Broker)
Neil McDonald / Derrick Lee +44 131 220 9771
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.
Drilling Spacing Unit (“DSU”)
Under the latest executed Joint Operating Agreement, any well in a new area
creates a DSU (formerly referred to as a pro-ration unit). The size of the DSU
varies depending on a) the type and length of the well to be drilled and b)
whether or not the well is a “commitment well” under the terms of the
exploration permit. Given that A3H is a commitment well on EP 98 to satisfy
permit requirements to the Northern Territory government, the DSU created is
approximately 4 times that of other wells. Wells which are not commitment
wells creating a new DSU will be a maximum of 6,400 acres.
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 (“Tamboran”), 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 spudding of A3H, targeting an
estimated depth of 2,450 metres TVD (total vertical depth); drilling activity
is expected to take approximately 25 days, including a 1,000-metre horizontal
section; and a stimulation program is planned for the second quarter of 2024,
following the end of the Northern Territory wet season. 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