Falcon Oil & Gas Ltd. - Spudding of Amungee 2H Development Well
in Exploration Permit 98
Falcon Oil & Gas
Ltd.(“Falcon” or
“Company”)
Spudding of Amungee 2H Development Well
in Exploration Permit 98
10 November 2022 – Falcon Oil & Gas Ltd.
(TSXV: FO, AIM: FOG) is pleased to announce the spudding of the
Amungee 2H development well (“A2H”) with the
Silver City Rig 40 on 10 November 2022 on EP 98 in the Beetaloo
Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas
Australia Limited’s joint venture partner, Tamboran (B1) Pty
Limited (“Tamboran B1”).
Tamboran B1 is a 50:50 joint venture partnership
between Daly Waters Energy, LP and Tamboran Resources Limited
(“Tamboran”), with Tamboran appointed as operator
across the exploration permits.
Tamboran will drill the vertical and build
section to a depth of approximately 2,450 metres, followed by the
drilling of a 1,000 metre horizontal section within the primary
target of the Amungee Member B Shale (formerly known as the Middle
Velkerri B-shale).
Following drilling, the A2H well is expected to
commence a hydraulic fracture stimulation programme with a US style
unconventional shale design. The well is designed with 5-½ inch
casing to allow for effective placement of proppant into the
formation, optimizing completion efficiency.
This is the first of two horizontal wells in the
Stage 3 programme to be drilled during this current drilling
campaign. The precise location of the second horizontal well, also
targeting the Amungee Member B shale is currently being evaluated,
and an update will be provided in due course.
Philip
O’Quigley,
Falcon’s CEO,
commented:
“The spudding of the A2H development well is an
exciting first step for the planned two horizontal wells of the
Stage 3 work programme with our new JV partner, Tamboran B1. This
follows a successful production log test in September last year at
Amungee NW-1H which suggested normalised gas flow rate equivalent
to around 5,000 Mscf/d per 1,000 metres of horizontal section.
Obtaining production rates over the first 30 days between
2,000-3,000 Mscf/d on the Stage 3 wells will support the JV moving
to a multi-well pilot development program in 2023/2024. Falcon
remains fully carried for the drilling and fracture stimulation of
the A2H 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.
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 (B1) Pty
LimitedTamboran (B1) Pty Limited is a 50:50 joint venture
between Tamboran Resources Limited and Daly Waters Energy, LP
(Sheffield).
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.
Glossary of terms
EP |
Exploration permit |
Mscf/d |
Thousand standard cubic feet per day |
|
|
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”,
“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 hydraulic fracture
stimulation programme using a US style unconventional shale design
and 5-½ inch casing to allow for effective placement of proppant
into the formation, optimizing completion efficiency, 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 2023/4, along with
assumptions made on the carry available for costs to be incurred
for the A2H well. 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
informationAny 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.
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