TIDMFOG
Falcon Oil & Gas Ltd.
("Falcon")
Planned Stage 3 Work Programme -- Beetaloo Sub-Basin
25 January 2022 -- Falcon Oil & Gas Ltd. (TSXV: FO, AIM:
FOG) is pleased to provide details of 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").
2022 will see Falcon and Origin progressing to the Stage 3 work
programme of the restated Farm-Out Agreement. , which will include
the drilling, fracture stimulation and extended production test of
two horizontal wells.
Stage 3 Planned Work Programme includes:
-- acquisition of 40 km2 of 3D seismic survey on the Amungee NW-1H well
lease area;
-- drilling two 2,000+ metre horizontal wells on the Amungee NW-1H pad,
targeting the Amungee Member (formerly knowns as the Middle Velkerri) B
Shale;
-- fracture stimulation of both horizontal wells;
-- extended production testing of between 90 and 180 days on each well;
-- 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 acquisition and interpretation of 3D seismic will be used to:
-- plan the drilling of the 2022 wells and any future horizontal
wells in the area;
-- optimise horizontal well trajectories; and
-- assess the viability of future 3D surveys in the Basin.
-- The two horizontal wells are being designed to:
-- demonstrate scalability of the Amungee NW-1H results over longer
laterals; and
-- establish operational and cost efficiencies by drilling more than
one well from the same pad.
Philip O'Quigley (CEO of Falcon) commented:
"This is an extremely important period for the Beetaloo
Sub-Basin and we are delighted to have confirmed a high-impact,
extensive and really exciting work programme for the joint
venture.
We will be focusing our attention on the Amungee Member B Shale,
following the 2021 results at Amungee NW-1H, which suggested a
normalised gas flow rate equivalent to around 5,000 Mscf/d per
1,000m of horizontal section; a potentially commercial flow rate.
Falcon remains largely (circa 75%) carried for 2022, with the
balance of costs being funded from existing resources. Positive
results here will provide a further line of sight to the
commercialisation of the Beetaloo and could lead to a pilot
development program in 2023. Confirmation on the commencement on
the Stage 3 work programme will be provided in the coming months as
scheduling is refined.
In addition to our own acreage, we also look forward to the gas
flow results from the current testing of two wells in the
neighbouring Santos-operated EP 161, also targeting the Amungee
Member dry gas play. We expect these results to be communicated to
the market shortly and believe that these will prove to be another
important moment for the nationally significant Beetaloo
Sub-Basin."
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") 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
3D Three dimensional
EP Exploration permit
km(2) Square kilometre
LNG Liquefied natural gas
Mscf/d Thousand standard cubic feet per day
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" 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 3work 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, along with
assumptions made on the carry available for costs to be incurred in
2022 and the balance being funded from existing resources. 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
January 25, 2022 02:00 ET (07:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Falcon Oil & Gas (LSE:FOG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Falcon Oil & Gas (LSE:FOG)
Historical Stock Chart
From Apr 2023 to Apr 2024