Successful Completion of SS1H Stimulation Program
07/12/2023 07:00
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Falcon Oil & Gas Ltd.
(“Falcon”)
Successful Completion of SS1H Stimulation Program
7 December 2023 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to
announce the completion of the 10-stage stimulation program over a 500 metre
horizontal section of the Amungee Member B-Shale within the Shenandoah South
1H (“SS1H”) well in EP117 which is operated by Falcon Oil & Gas Australia
Limited’s joint venture partner, Tamboran B2 Pty Limited (“Tamboran”).
Details are as follows:
* The stimulation program at SS1H delivered a proppant intensity of 2,212
pounds per foot (lb/ft) and average proppant injection per stage was 356,000
pounds.
* The stimulation program achieved rates of 100 barrels per minute (bpm) using
slickwater, a first in the Amungee Member B-Shale and in-line with current US
shale basin stimulation designs.
* Tamboran now plans to install production tubing ahead of the SS1H well
commencing flow back of stimulation fluid.
* Commencement of 30-day initial production (IP30) testing in mid-December
2023, subject to timing of gas breakthrough.
* Current expectations are to release IP30 flow rates in Q1 2024, subject to
timing of flow back stimulation fluid and weather conditions.
* Proof of commercial flow rates as measured over the IP30 day period and
which Falcon estimates to be 1.5 million cubic feet per day (MMcf/d) over the
500 metre horizontal section (3.0 MMcf/d normalised over 1,000 metres) or
greater will allow us to progress the sanctioning of the proposed 40 MMcf/d
pilot project at Shenandoah South during the first half of 2024.
Philip O’Quigley, CEO of Falcon commented:
“The stimulation program went extremely well with Tamboran’s operations
team achieving injection rates up to 100 bpm, a Beetaloo Sub-Basin rate
record, and average proppant injection per stage of 356,000 pounds, in line
with the initial design. We look forward to this next phase of operations in
the Beetaloo with the installation of production tubing ahead of flow back of
stimulation fluid and the commencement of the IP30. We will continue to update
the market as results become available.”
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 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.
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 Beetaloo Joint Venture (“BJV”) (EP 76, 98 and 117)
Company Interest
Falcon Oil & Gas Australia Limited 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 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 10 stage stimulation program;
commencement of 30-day initial production (IP30) testing in mid-December 2023
subject to timing of gas breakthrough, expectations to release IP30 flow rates
in Q1 2024; proof of commercial flow rates as measured over the IP30 day
period and which Falcon estimates to be 1.5 MMcf/d over the 500 metre
horizontal section (3.0 MMcf/d normalised over 1,000 metres) or greater will
allow us to progress the sanctioning of the proposed 40 MMcf/d pilot project
at Shenandoah South during the first half of 2024. 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