TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon" or the "Company")
Kyalla 117 N2-1H ST2 Update
7 October 2021 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG)
notes that production testing has now been completed and the well
shut in 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.
As noted in the Company's press release on 20 July 2021, while
Kyalla 117 flowed liquids-rich gas without assistance for
intermittent periods, production was not sustained and there were
indications of a potential downhole flow restriction.
On 14 September, coil tubing operations recommenced at Kyalla
117. No apparent restriction or blockage was identified in the
production casing. Following a nitrogen lift, the well was able to
flow unassisted at rates between 0 (i.e. rates too small to
measure) and 1.5 MMcsfd for five days before loading up with water.
Gas compositions data are not yet available but gas specific
gravity data is similar to that measured during the previous phase
of testing. Trace condensate was also observed.
Further analysis will be undertaken, including additional core
analysis and well design considerations, to enable a conclusion to
be reached on the results from operations at Kyalla 117, which will
inform the future approach to further drilling and testing of the
Kyalla play in the Beetaloo Sub-basin.
The purpose of the current exploration campaign was to collect
data across the three primary plays within the permits: Velkerri
dry gas, Velkerri liquids rich, and Kyalla liquids rich. Despite
the challenges, the Kyalla remains a viable target within the
Beetaloo. Kyalla 117 was the first horizontal well targeting the
Kyalla and achieved its primary technical objective of
demonstrating liquids rich gas flow potential of the Kyalla.
Recap on the gas composition
The initial analysis of natural gas by gas chromatography
confirmed a liquids-rich gas stream low in CO(2) as follows:
-- C1 = 65.03 mol%
-- C2 = 18.72 mol%
-- C3 = 8.37 mol%
-- iC4 = 1.29 mol%
-- nC4 = 2.03 mol%
-- C5+ = 2.73 mol%
-- CO2 = 0.91 mol%
-- N2 = 0.92 mol%
The elevated C(3) + gas component of 14.42 mol%, confirmed the
Lower Kyalla Shale as a liquids-rich gas play. Gas composition data
also support the view that the Kyalla gas stream will have elevated
LPG and condensate yields.
This announcement contains inside information.
Philip O'Quigley (CEO of Falcon) commented:
"The information collected from this first horizontal well
drilled in the Kyalla liquids-rich play, including the elevated
liquids component, confirmed that the Kyalla remains an attractive
target for further appraisal. Our immediate focus will now turn to
the Velkerri play area where we are currently drilling a new
exploration well in the potentially liquids-rich flank of the
basin; an area of key interest for the Beetaloo Sub-basin. We look
forward to updating the market as soon as the results from this
well are 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
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
C(1) Methane
C(2) Ethane
C(3) Propane
C(3) + Propane and heavier constituents of natural gas
iC(4) Iso-Butane
nC(4) N-Butane
C(5) + Pentane and heavier constituents of natural gas
CO(2) Carbon dioxide
LNG Liquefied natural gas
LPG Liquefied petroleum gas
MMscf/d Million standard cubic feet per day
mol% mole percent
N(2) Nitrogen
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 operations at Kyalla 117, drilling in the
Velkerri play, 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 initial production rates
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.
(END) Dow Jones Newswires
October 07, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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