Falcon Oil & Gas Ltd. - Preliminary Petrophysics and Mud Gas
Composition from Velkerri 76 S2-1 Well
Falcon Oil & Gas
Ltd.(“Falcon” or the
“Company”)
Preliminary
Petrophysics and Mud Gas
Composition from Velkerri 76
S2-1 Well
12 November 2021 - Falcon Oil & Gas Ltd.
(TSXV: FO, AIM: FOG) is pleased to provide details on the
preliminary petrophysical interpretation and mud gas composition
data from the Velkerri 76 S2-1 vertical appraisal well
(“Velkerri 76”) 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.
On 15 October 2021, the Company announced that
drilling of the Velkerri 76 well had been completed and preliminary
evaluation of the results had been very encouraging.
The preliminary petrophysical interpretation of
the Velkerri-76 wireline logs has now been carried out, which has
confirmed positive indications in particular from the B shale of
the Amungee Member (formerly known as the Middle Velkerri). Other
intervals within the Amungee Member, also show positive
indications, and further analysis will now be undertaken to confirm
these results.
The Amungee Member B shale was the principal
area of focus with Falcon’s operations at Amungee NW-1H and the
results obtained to date compare very favourably to some of the
most commercially successful shale plays in North America. The
Amungee Member B shale is also the focus of activities in the
neighbouring Santos and Empire Resources operated blocks.
Mud gas composition data also provides evidence
that the Amungee Member is within the wet gas maturity window and
contains good LPG yields and high heating gas value.
Key information with respect to the preliminary
petrophysics and mud gas composition of the Amungee Member B shale
are included in the table below:
|
Amungee Member B Shale |
Gross thickness (metres) |
53.9 |
Total Porosity Ave. (%BV) |
7.7 |
Total organic carbon Ave. (TOC, %wt) |
4.3 |
C1 (mol%) |
79.65 |
C2 (mol%) |
16.49 |
C3+ (mol%) |
3.86 |
The results of preliminary petrophysical
interpretation confirm:
- The prospectivity of the Amungee
Member B shale.
- Reservoir quality of the B shale
(TOC, porosity and gross thickness) compares strongly with
commercial shale plays in the United States.
- The Velkerri 76 S2-1 well provides
yet another robust data point for the joint venture to consider
various commercialisation options across its permits.
Additional analysis of the conventional core
acquired during the drilling of Velkerri 76 will be required to
confirm the preliminary petrophysics interpretation outlined above
and will take place over the coming months.
Laboratory analysis of gas samples collected
during drilling will be carried out to further refine gas
composition data within the Amungee Member shale intervals.
Philip O’Quigley (CEO of Falcon)
commented:“The preliminary petrophysical interpretation of
the Velkerri 76 wireline logs is excellent news with the Middle
Velkerri B shale comparing favourably to some of the most
commercially successful shale plays in North America. These results
are further evidence of the increasing significance of the Velkerri
play with results still to come from flow testing of two horizontal
wells at the neighbouring Santos-operated blocks also targeting the
Velkerri play."
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 EnergyOrigin
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
C1 |
Methane |
C2 |
Ethane |
C3+ |
Propane and heavier constituents of natural gas |
LNG |
Liquefied natural gas |
LPG |
Liquefied Petroleum Gas |
MMscf/d |
Million standard cubic feet per day |
mol% |
Mole percent |
MW |
Megawatt |
%BV |
Percentage of bulk rock volume |
%wt |
Weight percent |
Advisory regarding forward looking
statementsCertain 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”, “preliminary” 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 and the
preliminary petrophysics analysis at Velkerri-76, mud gas
composition data, 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.
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.
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