TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon")
Commencement of the 2021 Work Programme -- Beetaloo
Sub-Basin
22 June 2021 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is
pleased to announce the commencement of the 2021 work programme,
starting with operations at Kyalla 117 N2-1H ST2 ("Kyalla 117") 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 ("Origin").
On-site operations at Kyalla 117 have begun, with rigging up now
complete, and clean-up operations resumed. These operations, if
successful, will result in an extended production test ("EPT")
being carried out to determine the expected longer-term performance
of the well.
Further details on the 2021 work programme, including proposed
activity at Velkerri 76 and Amungee NW 1H, are set out below.
Kyalla 117
Kyalla Shale Play Summary
-- Liquids rich gas play, which has only been identified in the joint
venture acreage.
-- Material play fairway > 3,000 km2 with multi TCF potential.
-- Liquids rich play with two prospective stacked targets in the gas window,
and one in the oil window.
Results to date
-- As announced on 19 January 2021, Origin submitted a notification of
discovery and an initial report of discovery to the Northern Territory
Government.
-- Unassisted gas flow rates ranging between 0.4-0.6 MMscf/d were recorded
over seventeen hours, which are preliminary indications of well
performance, and an EPT is required to determine the longer-term
performance of Kyalla 117.
Velkerri 76
Velkerri Shale Play Summary
-- Largest play fairway in the Beetaloo with four prospective stacked
targets.
-- Predominantly dry gas with OGIP > 500+ TCF.
-- Liquids rich gas fairways on basin flanks with multi TCF potential.
-- Multiple successful tests within the dry gas window (Amungee NW 1H,
Tanumbrini1, Shenandoah 1A).
2021 work programme includes:
-- Targeting the Velkerri play along the south-eastern flank of the Beetaloo
Sub-Basin, which is predicted to be in a liquids rich gas window.
-- Drill a vertical pilot well to acquire core, run logs and perform
diagnostic fracture injection test data across the Velkerri.
Amungee NW 1H
Results to date
-- On 22 December 2016 Falcon announced that, following a 57-day EPT of the
well, production averaged 1.10 MMscf/d.
-- On 15 February 2017 Falcon announced that Origin had submitted the
Results of Evaluation of the Discovery and Preliminary Estimate of
Petroleum in Place for the Amungee NW-1H Velkerri B Shale Gas Pool to the
Northern Territory Government amounting to a gross contingent resource of
6.6 TCF, 1.46 TCF net to Falcon.
2021 work programme includes:
-- An extended production test and production log to confirm zonal
contribution, i.e. determine if all frack stages contributed to the
initial EPT conducted in 2016.
Philip O'Quigley (CEO of Falcon) commented:
"The commencement of operations at Kyalla 117 is an exciting
first step for the planned 2021 work programme which will cover
three different plays in the Beetaloo providing key information
that will help determine the future appraisal and development
programme. We look forward to providing results as soon as they
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
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 Origin
Origin 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
km(2) square kilometre
LNG Liquefied natural gas
MMscf/d Million standard cubic feet per day
MW Megawatt
OGIP Original gas in place
TCF Trillion cubic feet
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" 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 2021 work programme, the contingent resource estimate for the
Amungee NW-1H Velkerri B shale gas pool, 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 Middle Velkerri and Kyalla plays 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.
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.
Contingent resource estimates are those quantities of gas
(produced gas minus carbon dioxide and inert gasses) that are
potentially recoverable from known accumulations, but which are not
yet considered commercially recoverable due to the need for
additional delineation drilling, further validation of
deliverability and original gas in place, and confirmation of
prices and development costs. There is uncertainty that it will be
commercially viable to produce any portion of the resources. For
additional information relating to contingent resource estimates in
respect of the Amungee NW-1H Velkerri B Shale Gas Pool which were
prepared effective as of February 15, 2017, please refer to
Falcon's Annual Information Form dated April 26, 2021, which is
available on SEDAR at www.sedar.com.
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
June 22, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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