TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon" or the "Company")
Preliminary Results from Velkerri 76 S2-1 Well -- Very
Encouraging
15 October 2021 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG)
is pleased to announce that drilling of the Velkerri 76 S2-1
vertical appraisal well ("Velkerri 76") has been completed, with
the well drilled to a vertical total depth ("TD") of 2,129 metres
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.
Preliminary evaluation of the Velkerri-76 well is very
encouraging and confirms:
-- The presence of four prospective intervals within the Amungee Member
(formerly known as the Middle Velkerri), the A, AB, B and C shales, as
established in the Amungee NW-1 / 1H, Beetaloo W-1 and Kalala S-1 wells.
-- The continuation of the regionally pervasive Amungee Member within the
Velkerri Formation towards the eastern flank of the Beetaloo Sub-Basin
approximately 78 kilometres from the Amungee NW-1H and 73 kilometres from
the Beetaloo W-1 wells.
-- The Amungee Member is likely within the wet gas maturity window as
evidenced by mud gas data during drilling.
93 metres of continuous conventional core was acquired in the
Velkerri B and AB shales and extensive wireline logging data was
collected to enable detailed formation evaluation of the
prospective zones within the Amungee Member. The diagnostic
fracture injection test (DFIT) is to be carried out shortly and
will provide further understanding for future appraisal of the
Velkerri wet gas play.
Philip O'Quigley (CEO of Falcon) commented:
"The preliminary drilling results at Velkerri 76, together with
the revised normalised gas flow rate equivalent to 5 MMscf/d at
Amungee NW-1H announced in September 2021, is really exciting news
for Falcon shareholders as attention shifts to future activity in
the Beetaloo.
Falcon is in a prime position within the Beetaloo Sub-Basin with
significant areal exposure to the Velkerri shales across a range of
maturity windows, as established by the results from the 5 wells
drilled in the work programme to date.
This further development at Velkerri 76 emphasises the ever
growing significance of the Velkerri play.
This is another very encouraging development for the
nationally-important Beetaloo Sub-Basin and, with results to come
from flow testing of two horizontal wells at the neighbouring
Santos-operated blocks, which are also targeting the Velkerri play,
we see now as a key period in the step towards commercialisation of
the Beetaloo."
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
LNG Liquefied natural gas
MMscf/d Million standard cubic feet per day
MW Megawatt
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, comments made with respect
to the results of drilling at Velkerri-76, 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.
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 by an Origin employee and a Qualified Reserves and
Resources Evaluator 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
October 15, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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