TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon" or the "Company")
Preliminary Petrophysics and Mud Gas Composition from Velkerri
76 S2-1 Well
12 November 2021 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM:
FOG) is pleased to provide details on the preliminary petrophysical
interpretation and mud gas composition data from the Velkerri 76
S2-1 vertical appraisal well ("Velkerri 76") in the Beetaloo
Sub-Basin, Northern Territory, Australia with our joint venture
partner, Origin Energy B2 Pty Ltd., a wholly owned subsidiary of
Origin Energy Limited.
On 15 October 2021, the Company announced that drilling of the
Velkerri 76 well had been completed and preliminary evaluation of
the results had been very encouraging.
The preliminary petrophysical interpretation of the Velkerri-76
wireline logs has now been carried out, which has confirmed
positive indications in particular from the B shale of the Amungee
Member (formerly known as the Middle Velkerri). Other intervals
within the Amungee Member, also show positive indications, and
further analysis will now be undertaken to confirm these
results.
The Amungee Member B shale was the principal area of focus with
Falcon's operations at Amungee NW-1H and the results obtained to
date compare very favourably to some of the most commercially
successful shale plays in North America. The Amungee Member B shale
is also the focus of activities in the neighbouring Santos and
Empire Resources operated blocks.
Mud gas composition data also provides evidence that the Amungee
Member is within the wet gas maturity window and contains good LPG
yields and high heating gas value.
Key information with respect to the preliminary petrophysics and
mud gas composition of the Amungee Member B shale are included in
the table below:
Amungee Member B Shale
------------------------------------- ----------------------
Gross thickness (metres) 53.9
------------------------------------- ----------------------
Total Porosity Ave. (%BV) 7.7
------------------------------------- ----------------------
Total organic carbon Ave. (TOC, %wt) 4.3
------------------------------------- ----------------------
C(1) (mol%) 79.65
------------------------------------- ----------------------
C(2) (mol%) 16.49
------------------------------------- ----------------------
C(3) (+) (mol%) 3.86
------------------------------------- ----------------------
The results of preliminary petrophysical interpretation
confirm:
-- The prospectivity of the Amungee Member B shale.
-- Reservoir quality of the B shale (TOC, porosity and gross thickness)
compares strongly with commercial shale plays in the United States.
-- The Velkerri 76 S2-1 well provides yet another robust data point for the
joint venture to consider various commercialisation options across its
permits.
Additional analysis of the conventional core acquired during the
drilling of Velkerri 76 will be required to confirm the preliminary
petrophysics interpretation outlined above and will take place over
the coming months.
Laboratory analysis of gas samples collected during drilling
will be carried out to further refine gas composition data within
the Amungee Member shale intervals.
Philip O'Quigley (CEO of Falcon) commented:
"The preliminary petrophysical interpretation of the Velkerri 76
wireline logs is excellent news with the Middle Velkerri B shale
comparing favourably to some of the most commercially successful
shale plays in North America. These results are further evidence of
the increasing significance of the Velkerri play with results still
to come from flow testing of two horizontal wells at the
neighbouring Santos-operated blocks also targeting the Velkerri
play."
This contains inside information.
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
Camarco
James Crothers / Rebecca Waterworth
/ Billy Clegg +44 (0)20 3781 8331
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. Falcon Oil & Gas Australia Limited
and a wholly-owned subsidiary of Origin Energy Limited (ASX: ORG)
("Origin Energy") are joint venture partners in respect of the
Beetaloo project.
For further information on Falcon Oil & Gas Ltd. please
visit www.falconoilandgas.com
About Origin Energy
Origin Energy is a leading Australian integrated energy company.
Origin is a leading energy retailer with approximately 4.2 million
customer accounts, has approximately 7,500 MW of owner and
contracted power generation capacity and is also a large natural
gas supplier. Origin is the upstream operator of Australia Pacific
LNG, which supplies natural gas to domestic markets and exports LNG
under long term contracts.
www.originenergy.com.au
Glossary of terms
C(1) Methane
C(2) Ethane
C(3) + Propane and heavier constituents of natural gas
LNG Liquefied natural gas
LPG Liquefied Petroleum Gas
MMscf/d Million standard cubic feet per day
mol% Mole percent
MW Megawatt
%BV Percentage of bulk rock volume
%wt Weight percent
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", "potential",
"scheduled", "forecast", "outlook", "budget", "hope", "support",
"preliminary" 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,
comments made with respect to the results of drilling and the
preliminary petrophysics analysis at Velkerri-76, mud gas
composition data, drilling in the Amungee Member/Middle Velkerri
play, the prospectivity of the Amungee Member/Middle Velkerri play
and the prospect of the exploration programme being brought to
commerciality. 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.
(END) Dow Jones Newswires
November 12, 2021 03:00 ET (08:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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