TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon")
Beetaloo Operational Update
30 October 2023 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG)
is pleased to provide an operational update on 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.
Details are as follows:
-- A diagnostic fracture injection test ("DFIT") of the Amungee Member
B-shale on the SS1H well was conducted to analyse geo-mechanical and
reservoir properties, with results verified by third-party subsurface
experts, Subsurface Dynamics, Inc.
-- Formation pressures at SS1H were monitored for over 20 days and analysed
to provide a pore pressure prediction for the area.
-- DFIT results have demonstrated an over pressured regime, with a pore
pressure gradient of at least 0.54 pounds per square inch (psi) per foot,
which is consistent with an over pressured regime observed in the core
area of the Marcellus shale. In addition, this result provides confidence
that the upcoming flow test of the SS-1H well can replicate or exceed
commercial flow tests achieved at the Santos-operated Tanumbirini 2H and
Tanumbirini 3H wells (0.51 -- 0.56 psi per foot) in the EP 161 acreage.
-- Condor Energy Services have commenced the mobilisation of stimulation
equipment to the SS1H well pad ahead of the planned 10 stage stimulation
program in November 2023. IP30 flow rate results are anticipated to be
released in early Q1 2024, subject to the timing of stimulation fluid
flow back.
-- On successful flow testing of SS1H, the Beetaloo Joint Venture ("BJV")
expect to be in a position to sanction a proposed pilot development in
the Shenandoah South region.
Philip O'Quigley, CEO of Falcon commented:
"With the DFIT results along with log analysis providing
confidence, we look forward to the next phase of operations in the
Beetaloo with the stimulation and extended production testing of
SS1H commencing in November. 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 / Derrick Lee +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.
Diagnostic Fracture Injection Test
The DFIT was conducted on 6 October 2023 after the casing and
cement integrity was verified suitable for hydraulic fracturing
operations. A DFIT is a widely accepted industry technique used to
analyse geo-mechanical and reservoir properties.
The process involves injecting a low volume of fluid down the
wellbore to breakdown the formation, creating a small initial
fracture, allowing for the pressure behaviour after injection to be
monitored.
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 and 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 conducted DFIT; the analysis of formation pressures providing a
pore pressure prediction for the area; DFIT results have
demonstrated an over pressured regime, with a pore pressure
gradient of at least 0.54 pounds per square inch (psi) per foot,
which is consistent with an over pressured regime observed in the
core area of the Marcellus shale; result provides confidence that
the upcoming flow test of the SS-1H well can replicate or exceed
commercial flow tests achieved at the Santos-operated Tanumbirini
2H and Tanumbirini 3H wells (0.51 -- 0.56 psi per foot) in the EP
161 acreage; planned 10 stage stimulation program at SS1H in
November 2023; IP30 flow rates anticipated to be released in early
Q1 2024, subject to timing of stimulation fluid flow back; and on
successful flow testing of SS1H, the BJV expecting to be in a
position to sanction a proposed pilot development in the Shenandoah
South region. 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.
(END) Dow Jones Newswires
October 30, 2023 03:01 ET (07:01 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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