TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon")
Operational Update -- Beetaloo Sub-Basin
04 May 2022 -- Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is
pleased to provide an operational update on the Stage 3 work
programme in the Beetaloo Sub-Basin, Northern Territory, Australia
with its joint venture partner, Origin Energy B2 Pty Ltd., a wholly
owned subsidiary of Origin Energy Limited ("Origin").
As noted in Falcon's press release published on 25 January 2022,
this year will see Falcon and Origin progressing to the Stage 3
work programme of the restated Farm-Out Agreement. Following
discussions with Origin, in order to maximise the impact of Stage 3
operations the joint venture has agreed to modify the Stage 3
programme announced previously, which will now include a step out
location for one well.
Stage 3 Planned Work Programme includes:
-- Acquisition of a 58km line of high spec 2D seismic on the Amungee NW-1H
well lease area;
-- Drilling one 1,000 metre horizontal well on the Amungee NW-1H pad,
targeting the Amungee Member (formerly knowns as the Middle Velkerri) B
Shale;
-- Step out location approx. 10km from the Amungee NW-1H pad, drilling a
vertical pilot and a 1,000 metre horizontal well also targeting the
Amungee Member B shale;
-- 15 stage fracture stimulation on both horizontal wells;
-- Extended production testing of between 90 and 180 days on each well;
-- As previously announced there will also be:
-- follow up core and log analysis of the very encouraging
preliminary evaluation of the 2021 Velkerri 76 well results; and
-- further evaluation of the results of the Kyalla 117 N2-1H well to
better understand the issues encountered during testing in 2021.
Stage 3 Drilling and 3D Programme Objectives:
-- The primary objective of the two wells is to:
-- Obtain a production rate over the first 30 days of between 2-3
MMscf/d to support a multi-well pilot programme in 2023/24.
-- Secondary objectives for the Stage 3 programme are to:
-- Achieve a drill duration of less than 45 days;
-- Characterise natural fracture network and complexity; and
-- Integrate well data with seismic data and assess merits of future
3D seismic surveys in the Beetaloo.
Philip O'Quigley (CEO of Falcon) commented:
"This is an extremely important period for the Beetaloo
Sub-Basin and Falcon believes the modified work programme which now
includes a step out location will provide further valuable evidence
and help accelerate the programme towards a multi-well pilot
programme in CY23/24.
The 2021 EPT and PLT at Amungee NW-1H provided a line of sight
to achieving initial production rates in the range of 3+ MMscf/d
per 1,000 metre laterals from the Amungee Member B Shale. Together
with the large contiguous acreage position offering significant
running room, the stacked prospective Amungee Member shale targets
with multiple landing zones, and the proximity to the northern
flank to integrate future wet gas play support a route to
commerciality.
We will continue to update the market on this high-impact and
extensive Stage 3 programme over the coming months."
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
2D Two dimensional
EP Exploration permit
EPT Extended production test
km kilometre
km(2) Square kilometre
LNG Liquefied natural gas
MMscf/d Million standard cubic feet per day
PLT Production logging tool
MW Megawatt
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", "suggest",
"support" "planned", "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 normalised gas flow rates
at the Amungee NW-1H well, the Stage 3 work programme, 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 Amungee Member/Middle
Velkerri play and the prospect of the exploration programme being
brought to commerciality and a pilot development in 2023 and the
potential CY23/24 appraisal programme. 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.
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
May 04, 2022 02:00 ET (06:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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