23:46:44 EST Sat 24 Feb 2024
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Falcon Oil & Gas Ltd
Symbol FO
Shares Issued 1,044,347,425
Close 2023-11-27 C$ 0.115
Market Cap C$ 120,099,954
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Falcon Oil JV partner begins SS1H well stimulation work

2023-11-27 11:13 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD - BEETALOO OPERATIONAL UPDATE

Falcon Oil & Gas Ltd. has commenced stimulation activities at the Shenandoah South 1H (SS1H) well in EP117, which is operated by Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran B2 Pty. Ltd.

Details are as follows:

  • The planned program, to be conducted by Condor Energy Service, includes 10 stimulation stages within the Amungee member B-shale over a 500-metre horizontal section of SS1H. The stimulation operation is expected to be completed in December, 2023.
  • On completion of the stimulation campaign, production tubing will be installed ahead of expected flowback of stimulation fluid and gas breakthrough.
  • The stimulation program incorporates lessons learned from the joint venture's Amungee NW-2H well in EP 98 and the Tanumbirini wells in Santos operated EP 161. This includes an increase in hydraulic horsepower and higher well design pressures to increase effectiveness of stimulation treatments and fluid conditioning methodologies to decrease the risk of skin damage.
  • Diagnostic fracture injection test (DFIT) results have already demonstrated an over-pressured regime at the Shenandoah South location, with a pore pressure gradient of at least 0.54 psi/ft (pound per square inch per foot). This is in line with results demonstrated at the Tanumbirini well (0.51 psi/ft to 0.56 psi/ft), providing confidence on the ability to replicate or exceed the commercial flow rates achieved at the Tanumbirini location.
  • Current expectations are to release 30-day initial production (IP30) flow rates in Q1 2024, subject to weather conditions and the timing to flow back stimulation fluid to achieve gas breakthrough.
  • Results from the SS1H well are a key deliverable that will support the sanctioning of the joint venture's proposed 40 MMcf/d (million cubic feet per day) pilot project at Shenandoah South.

Philip O'Quigley, chief executive officer of Falcon, commented:

"We look forward to this phase of operations in the Beetaloo with the stimulation and extended production testing of SS1H with the planned program incorporating the lessons from previous programs, including Amungee NW-2H and with the DFIT results providing confidence on the ability to achieve commercial flow rates. We will continue to update the market as results become available."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's head of technical operations. Dr. Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary, and his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a member of AAPG.

Diagnostic fracture injection test

The DFIT was conducted on Oct. 6, 2023, after the casing and cement integrity was verified suitable for hydraulic fracturing operations. A DFIT is a widely accepted industry technique used to analyze geomechanical and reservoir properties.

The process involves injecting a low volume of fluid down the wellbore to breakdown the formation, creating a small initial fracture, allowing for the pressure behaviour after injection to be monitored.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas is an international oil and 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 is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland, with a technical team based in Budapest, Hungary.

Falcon Oil & Gas Australia Ltd. is an approximately 98-per-cent subsidiary of Falcon Oil & Gas.

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