Falcon Oil & Gas Ltd. - Spudding of Shenandoah South 1H in
Exploration Permit 117
Falcon Oil & Gas
Ltd.(“Falcon” or
“Company”)
Spudding of Shenandoah
South 1H in Exploration
Permit 117
01 August 2023 – Falcon Oil & Gas Ltd.
(TSXV: FO, AIM: FOG) is pleased to announce the spudding of the
Shenandoah South 1H (“SS1H”) horizontal well in
exploration permit 117 with a H&P (Helmerich & Payne)
super-spec FlexRig® Flex 3 Rig in the Beetaloo Sub-Basin, Northern
Territory, Australia with Falcon Oil & Gas Australia Limited’s
joint venture partner, Tamboran (B2) Pty Limited (“Tamboran
B2”).
The SS1H well, which will include a horizontal
section of approximately 1,000 meters, will target the Amungee
Member B-shale at an estimated target depth of 3,200 metres
(approximately 700 metres deeper than the Amungee NW-2H
(“A2H”) well in EP 98).
The SS1H well, which is the first of two
horizontal wells to be drilled in 2023 is located approximately 60
kilometres south of the A2H well site. The deeper reservoir in this
area of the basin is expected to deliver higher pressures, based on
data from the two Santos-operated Tanumbirini wells in EP 161.
Falcon will participate in the SS1H well at its
full participating interest of 22.5% which, under the terms of the
Joint Operating Agreement, will create a drilling spacing unit
(“DSU”) of 20,480 acres.
Falcon remains fully funded for its share of all
costs associated with the drilling and testing of the SS1H
well.
Philip
O’Quigley,
Falcon’s CEO,
commented:
“The spudding of the SS1H horizontal well, which
is the first of the planned two horizontal wells to be drilled in
2023, is an exciting next step in the appraisal of the Beetaloo
Sub-Basin. We are confident that learnings and results from the
previous two Amungee wells drilled in EP 98, together with the two
Santos operated Tanumbirini wells drilled in EP 161 will have a
positive impact on the outcome of the results from this SS1H
well.”
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.
Drilling Spacing Unit
(“DSU”)Under the latest executed Joint Operating
Agreement, any well in a new area creates a DSU (formerly referred
to as a pro-ration unit). The size of the DSU varies depending on
a) the type and length of the well to be drilled and b) whether or
not the well is a “commitment well” under the terms of the
exploration permit. Given that SS1H is a commitment well on EP 117
to satisfy permit requirements to the Northern Territory
government, the DSU created is approximately 4 times that of other
wells. Wells which are not commitment wells creating a new DSU will
be a maximum of 6,400 acres.
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.
For further information on Falcon Oil & Gas
Ltd. please visit www.falconoilandgas.com
About Tamboran B2 Pty
LimitedTamboran (B1) Pty Limited (“Tamboran B1”) is the
100% holder of Tamboran B2 Pty Limited, with Tamboran B1 being a
50:50 joint venture between Tamboran Resources Limited and Daly
Waters Energy, LP.
Tamboran Resources Limited, is a natural gas
company listed on the ASX (TBN) and U.S. OTC markets (TBNNY).
Tamboran is focused on playing a constructive role in the global
energy transition towards a lower carbon future, by developing the
significant low CO2 gas resource within the Beetaloo Basin through
cutting-edge drilling and completion design technology as well as
management’s experience that in successfully commercialising
unconventional shale in North America.
Bryan Sheffield of Daly Waters Energy, LP is a
highly successful investor and has made significant returns in the
US unconventional energy sector in the past. He was Founder of
Parsley Energy Inc. (“PE”), an independent
unconventional oil and gas producer in the Permian Basin, Texas and
previously served as its Chairman and CEO. PE was acquired for over
US$7 billion by Pioneer Natural Resources Company
(“Pioneer”), itself a leading independent oil and
gas company and with the PE acquisition became a Permian pure play
company. Pioneer has a current market capitalisation of c. US$60
billion.
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”,
“consider” “potential”, “scheduled”, “forecast”, “outlook”,
“budget”, “hope”, “suggest”, “support” “planned”, “approximately”,
“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 the H&P rig, a two well programme in
2023, the estimated target depth of the SS1 well and the assumption
that the deeper reservoir is expected to deliver high pressures.
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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