TIDMFOG
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- 1/2 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 Limited
Tamboran (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 CO(2) 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 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 hydraulic fracture stimulation programme
using a US style unconventional shale design and 5- 1/2 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 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
November 10, 2022 02:00 ET (07:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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