Mr. Philip O'Quigley reports

SPUDDING OF SHENANDOAH SOUTH 2H IN EXPLORATION PERMIT 98

Falcon Oil & Gas Ltd. has begun the 2024 drilling program with the spudding of the Shenandoah South 2H (SS2H) horizontal well on exploration permit 98 in the Beetaloo subbasin, Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd.

Following the drilling of the SS2H well, Tamboran B2 will immediately move to the Shenandoah South 3H (SS3H) well off the same well pad location ahead of the stimulation program.

Both wells will be drilled with an H&P superspec FlexRig Flex 3 rig and will include a horizontal section of approximately 3,000 metres and will target the Amungee Member B shale at an estimated target depth of 3,020 metres. Each well is expected to be drilled in 30 days.

The wells will be stimulated with up to 60 stages utilizing the Liberty Energy modern frac fleet currently being mobilized from the United States to Australia. The increased efficiency and performance of the Liberty fleet is expected to result in a material increase in the completed stages per day and optimized gas flows.

Initial flow test results from each well are expected in the first quarter of 2025. Once flow testing is complete, both wells will be suspended as future producers to supply the proposed 40-million-cubic-feet-per-day (MMcf/d) Shenandoah South pilot project, which is expected to commence production in H1 2026, subject to final stakeholder and regulatory approvals.

The two-well program will be the largest single campaign in the Beetaloo subbasin to date. An additional four-well program is planned for 2025, which will complete the drilling for the proposed Shenandoah South pilot project that will supply 40 MMcf/d to the Northern Territory government.

Falcon Australia will participate in both wells in the Shenandoah South pilot project at its elected participating interest of 5 per cent.

Philip O'Quigley, chief executive officer of Falcon, commented: "The spudding of the SS2H horizontal well, which is the first of the planned two horizontal wells to be drilled in 2024, is an exciting next step in the development of the Beetaloo subbasin. Following on from the success of the Shenandoah South 1H well announced earlier this year, and using the same drilling company, H&P, together with the arrival of the Liberty frac fleet, capable of materially increasing the stimulation intensity, we are really excited about being able to demonstrate the deliverability of the Amungee Member B shale over 3,000-metre horizonal sections."

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 on Australia. Falcon Oil & Gas is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland.

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