Falcon Oil & Gas Ltd - Shenandoah South - 1H well IP60 Day Flow
Rates of 3.0 MMcf/d (normalised to 6.0 MMcf/d)
Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)
Shenandoah South - 1H well IP60 Day Flow
Rates of 3.0 MMcf/d (normalised to 6.0 MMcf/d)
26 March 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG)
is pleased to announce that the Shenandoah South 1H
(SS-1H) well in EP117 achieved above commercial
IP60 flow rate of 3.0 MMcf/d (normalised to 6.0 MMcf/d over 1,000
metres).
Highlights are as follows:
-
The SS-1H well in EP117 achieved an average 60-day initial
production (IP60) flow rate of 3.0 million cubic
feet per day (MMcf/d) over the 1,644-foot (501
metres), 10 stage stimulated length within the Amungee Member
B-Shale, normalised to 6.0 MMcf/d over 3,281-feet (1,000
metres).
-
Exit rate trajectory after the 60 days of flow testing showed a
steady low declining curve at 2.76 MMcf/d over the stimulated
length (normalised at 5.52 MMcf/d per 3,281 feet) and stable
reservoir back pressure of 530 psi.
-
The SS-1H IP60 flow test indicates that future development wells
with lateral length of 10,000-foot (3,000 metres) may be capable of
delivering average rates of 18.4 MMcf/d over the first 60 days of
production.
-
Results to date confirm that this region measuring more than 1
million gross acres below 8,850 feet (2,700 metres) is one of the
best locations in the Beetaloo Basin to commence pilot development
activities.
-
Flow testing of the SS-1H well will continue for the next 30 days
to achieve average IP90 flow rates to better determine the well’s
estimated ultimate recovery per well (EUR). IP90
flow rate results are expected to be announced in late April
2024.
-
The Beetaloo JV Partners of Falcon and Tamboran B2 Pty Limited will
continue to progress development plans for the proposed 40 MMcf/d
Pilot Project at the Shenandoah South location. The project is
expected to require six 10,000-foot development wells initially to
achieve plateau production of 40 MMcf/d. Drilling of the first of
these wells is planned to commence in Q2 2024 and the JV is
targeting first gas in H1 2026.
-
At the end of February 2024, Falcon held ~US$5 million in cash and
has the benefit of a further A$16.67 million gross (~US$2.5 million
net Falcon) carry to support immediate activities.
-
Falcon is funded to commence drilling of the initial two wells in
the program and will evaluate opportunities to support funding the
remaining capital commitments to reach first production, including
issuance of equity and/or debt, evaluation of pre-payment for gas
from the proposed pilot project and potential farm-down
opportunities.
Philip O’Quigley, CEO of Falcon
commented:
“The SS-1H IP60 flow rate announced today of 3.0 MMcf/d, normalised
to 6.0 MMcf/d over 1,000 metres, demonstrates a steady low
declining curve while holding its downhole pressure. This augurs
well for the initial development in the Shenandoah South area as
these rates continue to track average flow rates seen in the
Marcellus Shale basin in the US.”
Table 1: Shenandoah South-1 DSU – 20,480
acres
Company |
Interest |
Tamboran (B2) Pty Limited |
77.5% |
Falcon Oil and Gas Australia Limited |
22.5% |
Total |
100.0% |
Table 2: Breakdown of the SS-1H flow result
SS-1H Rates (MMcf/d) |
Actual
(501m; 1,644 ft) |
Normalized
(1,000m; 3,281 ft) |
Normalized
(3,048m; 10,000 ft) |
Peak rate |
12.9 |
N/A |
N/A |
Average IP30 flow rate |
3.2 |
6.4 |
19.5 |
IP30 exit rate |
2.9 |
5.8 |
17.6 |
Average IP60 flow rate |
3.0 |
6.0 |
18.4 |
IP60 exit rate |
2.8 |
5.5 |
16.8 |
Source: Tamboran
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 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 CO2 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 IP60 flow rate of 3.0
MMcf/d over the 501 metres 10 stage stimulated length within the
Amungee Member B-Shale, to the exit rate trajectory after the 60
days of flow testing showing a steady low declining curve over the
stimulated length and stable reservoir back pressure of 530 psi,
that the IP60 flow test results indicates that future development
wells may be capable of delivering average rates of 18.4 MMcf/d,
that this region is one of the best locations in the Beetaloo Basin
to commence pilot development activities, the flow testing of the
SS-1H well continuing for the next 30 days, IP90 flow results
expected to be announced in late April 2024, the JV continuing to
progress development plans for the proposed 40 MMcf/d Pilot Project
at the Shenandoah South location, the development of six
10,000-foot development wells initially to achieve plateau
production of 40 MMcf/d, drilling of the first of these wells
planned to commence in Q2 2024 and the targeting of first gas in H1
2026, funding to commence drilling of the initial two wells in the
program and evaluation of opportunities to support funding the
remaining capital commitments to reach first production, including
issuance of equity and/or debt, evaluation of pre-payment for gas
from the proposed Pilot Project and potential farm-down
opportunities
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.
Falcon Oil & Gas (LSE:FOG)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Falcon Oil & Gas (LSE:FOG)
Historical Stock Chart
Von Dez 2023 bis Dez 2024