Spudding of Shenandoah South 2H in Exploration Permit 98
30/08/2024 07:00
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Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Spudding of Shenandoah South 2H in Exploration Permit 98
30 August 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the commencement of the 2024 drilling programme with the spudding of
the Shenandoah South 2H (“SS2H”) horizontal well in exploration permit 98
in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas
Australia Limited’s (“Falcon Australia”) joint venture partner, Tamboran
(B2) Pty Limited (“Tamboran B2”).
Following the drilling of the SS2H well, Tamboran B2 will immediately move to
the Shenandoah South 3H (“SS3H”) well off the same well pad location ahead
of the stimulation program.
Both wells will be drilled with a H&P super-spec FlexRig® Flex 3 Rig and will
include a horizontal section of approximately 3,000 metres and will target the
Amungee Member B-shale at an estimated target depth of 3,020 metres. Each well
is expected to be drilled in 30 days.
The wells will be stimulated with up to 60 stages utilising the Liberty Energy
modern frac fleet currently being mobilised from the US to Australia. The
increased efficiency and performance of the Liberty fleet is expected to
result in a material increase in the completed stages per day and optimised
gas flows.
Initial flow test results from each well are expected in Q1 2025. Once flow
testing is complete, both wells will be suspended as future producers to
supply the proposed 40 million cubic feet per day (MMcf/d) Shenandoah South
Pilot Project, which is expected to commence production in H1 2026, subject to
final stakeholder and regulatory approvals.
The two well program will be the largest single campaign in the Beetaloo
Sub-basin to date. An additional four well program is planned for 2025 which
will complete the drilling for the proposed Shenandoah South Pilot Project
that will supply 40 MMcf/d to the Northern Territory government.
Falcon Australia will participate in both wells in the Shenandoah South Pilot
Project at its elected participating interest of 5%.
Philip O’Quigley, CEO of Falcon commented:
“The spudding of the SS2H horizontal well, which is the first of the planned
two horizontal wells to be drilled in 2024, is an exciting next step in the
development of the Beetaloo Sub-basin. Following on from the success of the
Shenandoah South 1H well announced earlier this year, and using the same
drilling company, H&P, together with the arrival of the Liberty frac fleet,
capable of materially increasing the stimulation intensity, we are really
excited about being able to demonstrate the deliverability of the Amungee
Member B-shale over 3,000 metre horizonal sections.”
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 Beetaloo Joint Venture (EP 76, 98 and 117)
Company Interest
Falcon Oil & Gas Australia Limited (Falcon Australia) 22.5%
Tamboran (B2) Pty Limited 77.5%
Total 100.0%
Shenandoah South Pilot Project -2 Drilling Space Units – 51,200 acres(1)
Company Interest
Falcon Oil & Gas Australia Limited (Falcon Australia) 5.0%
Tamboran (B2) Pty Limited 95.0%
Total 100.0%
(1)Subject to the completion of the SS2H and SS3H wells on the Shenandoah
South pad 2.
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 Tamboran B2 immediately moving to
drilling the SS3H well off the same well pad location ahead of the stimulation
program following the drilling of the SS2H well, both wells being drilled with
a H&P super-spec FlexRig® Flex 3 Rig and including a horizontal section of
approximately 3,000 metres and targeting the Amungee Member B-shale at an
estimated target depth of 3,020 metres, the wells being stimulated with up to
60 stages utilising the Liberty Energy modern frac fleet, the increased
efficiency and performance of the Liberty fleet resulting in a material
increase in the completed stages per day and optimised gas flows, each well
expecting to be drilled in 30 days, initial flow test results from each well
expected in Q1 2025, both wells suspended as future producers to supply the
proposed 40 MMcf/d Shenandoah South Pilot Project, production expected to
commence in H1 2026, subject to final stakeholder and regulatory approvals and
that the two well program will be the largest single campaign in the Beetaloo
Basin to date and that an additional four well program is planned for 2025
which will complete the drilling for the proposed Shenandoah South Pilot
Project that will supply 40 MMcf/d to the Northern Territory government.
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