Spudding of Shenandoah South 1H in Exploration Permit 117
01/08/2023 07:00
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Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Spudding of Shenandoah South 1H in Exploration Permit 117
01 August 2023 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the spudding of the Shenandoah South 1H (“SS1H”) horizontal well
in exploration permit 117 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 SS1H well, which will include a horizontal section of approximately 1,000
meters, will target the Amungee Member B-shale at an estimated target depth of
3,200 metres (approximately 700 metres deeper than the Amungee NW-2H
(“A2H”) well in EP 98).
The SS1H well, which is the first of two horizontal wells to be drilled in
2023 is located approximately 60 kilometres south of the A2H well site. The
deeper reservoir in this area of the basin is expected to deliver higher
pressures, based on data from the two Santos-operated Tanumbirini wells in EP
161.
Falcon will participate in the SS1H 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.
Falcon remains fully funded for its share of all costs associated with the
drilling and testing of the SS1H well.
Philip O’Quigley, Falcon’s CEO, commented:
“The spudding of the SS1H horizontal well, which is the first of the planned
two horizontal wells to be drilled in 2023, is an exciting next step 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 two Santos operated Tanumbirini wells drilled in EP 161 will have a
positive impact on the outcome of the results from this SS1H well.”
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
Cenkos 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 SS1H is a commitment well on EP 117 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, 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 that 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 H&P rig, a two well programme in
2023, the estimated target depth of the SS1 well and the assumption that the
deeper reservoir is expected to deliver high pressures. 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.sedar.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