Falcon Oil & Gas Ltd. - Operational Update – Beetaloo Sub-Basin
Falcon Oil & Gas
Ltd.(“Falcon”)
Operational Update –
Beetaloo Sub-Basin
04 May 2022 – Falcon Oil & Gas Ltd. (TSXV:
FO, AIM: FOG) is pleased to provide an operational update on the
Stage 3 work programme in the Beetaloo Sub-Basin, Northern
Territory, Australia with its joint venture partner, Origin Energy
B2 Pty Ltd., a wholly owned subsidiary of Origin Energy Limited
(“Origin”).
As noted in Falcon’s press release published on
25 January 2022, this year will see Falcon and Origin progressing
to the Stage 3 work programme of the restated Farm-Out Agreement.
Following discussions with Origin, in order to maximise the impact
of Stage 3 operations the joint venture has agreed to modify the
Stage 3 programme announced previously, which will now include a
step out location for one well.
Stage 3
Planned Work Programme
includes:
- Acquisition of a 58km line of high
spec 2D seismic on the Amungee NW-1H well lease area;
- Drilling one ~1,000 metre
horizontal well on the Amungee NW-1H pad, targeting the Amungee
Member (formerly knowns as the Middle Velkerri) B Shale;
- Step out location approx. 10km from
the Amungee NW-1H pad, drilling a vertical pilot and a ~1,000 metre
horizontal well also targeting the Amungee Member B shale;
- 15 stage fracture stimulation on
both horizontal wells;
- Extended production testing of
between 90 and 180 days on each well;
- As previously announced there will
also be:
- follow up core and log analysis of
the very encouraging preliminary evaluation of the 2021 Velkerri 76
well results; and
- further evaluation of the results
of the Kyalla 117 N2-1H well to better understand the issues
encountered during testing in 2021.
Stage 3 Drilling and
3D Programme
Objectives:
- The primary objective of the two
wells is to:
- Obtain a production rate over the
first 30 days of between 2-3 MMscf/d to support a multi-well pilot
programme in 2023/24.
- Secondary objectives for the Stage
3 programme are to:
- Achieve a drill duration of less
than 45 days;
- Characterise natural fracture
network and complexity; and
- Integrate well data with seismic
data and assess merits of future 3D seismic surveys in the
Beetaloo.
Philip O’Quigley (CEO of Falcon)
commented:“This is an extremely important period for the
Beetaloo Sub-Basin and Falcon believes the modified work programme
which now includes a step out location will provide further
valuable evidence and help accelerate the programme towards a
multi-well pilot programme in CY23/24.
The 2021 EPT and PLT at Amungee NW-1H provided a line of sight
to achieving initial production rates in the range of 3+ MMscf/d
per 1,000 metre laterals from the Amungee Member B Shale. Together
with the large contiguous acreage position offering significant
running room, the stacked prospective Amungee Member shale targets
with multiple landing zones, and the proximity to the northern
flank to integrate future wet gas play support a route to
commerciality.
We will continue to update the market on this high-impact and
extensive Stage 3 programme over the coming months.”
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.
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”) are joint venture
partners in respect of the Beetaloo project.
For further information on Falcon Oil & Gas
Ltd. please visit www.falconoilandgas.com
About OriginOrigin 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
2D |
Two dimensional |
EP |
Exploration permit |
EPT |
Extended production test |
km |
kilometre |
km2 |
Square kilometre |
LNG |
Liquefied natural gas |
MMscf/d |
Million standard cubic feet per day |
PLT |
Production logging tool |
MW |
Megawatt |
TCF |
Trillion cubic feet |
Advisory regarding forward looking
statementsCertain 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”,
“suggest”, “support” “planned”, “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 normalised
gas flow rates at the Amungee NW-1H well, the Stage 3 work
programme, comments made with respect to the type, number,
schedule, stimulating, testing and objectives of the wells to be
drilled in the Beetaloo Sub-basin Australia, the prospectivity of
the Amungee Member/Middle Velkerri play and the prospect of the
exploration programme being brought to commerciality and a pilot
development in 2023 and the potential CY23/24 appraisal programme.
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.
Advisory regarding oil
and gas information
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.
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