03:12:06 EDT Sat 12 Jul 2025
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Falcon Oil & Gas Ltd
Symbol FO
Shares Issued 1,109,141,512
Close 2025-01-23 C$ 0.125
Market Cap C$ 138,642,689
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Falcon Oil begins stimulation work at Shenandoah wells

2025-01-24 09:26 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - BEETALOO OPERATIONAL UPDATE - STIMULATION CAMPAIGN & REMAINING SHENANDOAH SOUTH PILOT PROJECT

Falcon Oil & Gas Ltd. has commenced a stimulation campaign at the Shenandoah S2-2H ST1 and Shenandoah S2-4H wells in the Beetaloo subbasin in Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd.

Key highlights of the stimulation campaign:

  • Stimulation campaign will be completed across:
    • S2-2H ST1's horizontal section of 1,654 metres (5,427 feet);
    • S2-4H's horizontal section of 2,977 metres (9,766 feet);
  • Liberty Energy, which mobilized equipment and sand to location before the end of last year, will carry out the stimulation campaign on behalf of the Beetaloo joint venture partners.

Shenandoah South pilot project

For the next drilling phase of the pilot, which involves the drilling and stimulation of the remaining four wells, Falcon has elected to reduce its participating interest (PI) from 5 per cent to 0 per cent.

Key highlights of the reduced participating interest:

  • The election by Falcon to reduce its PI to 0 per cent in the remaining four wells of the pilot will significantly reduce its 2025 capital expenditure.
  • Falcon participated in the Shenandoah S-1H well in 2023 at its 22.5-per-cent PI, which created a drill spacing unit (DSU) of 20,480 acres.
  • Falcon participated in the S2-2H ST1 and the S2-4H wells in 2024 at its reduced 5-per-cent PI, which created two DSUs totalling 46,080 acres.
  • The Beetaloo joint venture partners are planning on creating an enlarged area around the pilot, known as the first strategic development area (FSDA), which would amalgamate the acreage and PIs from the DSUs mentioned above and any further DSUs that may be created as part of the pilot.
  • Depending on the ultimate size of the planned FSDA, Falcon's combined participation entitlement in the FSDA after the pilot could be up to 10 per cent.
  • Falcon also retains a 22.5-per-cent PI in the remaining 4.52 million acres in the Beetaloo subbasin (net one million acres to Falcon).

Philip O'Quigley, chief executive officer of Falcon, commented: "We are extremely encouraged about the potential of the current stimulation program based on strong gas shows and other data observed whilst drilling both wells. In addition, we are very confident that the experienced U.S. operator, Liberty Energy, will provide us with the greatest opportunity for the best possible outcome from this stimulation program. We look forward to updating the market on the IP30 flow test results as soon as they become available.

"Reducing our participation in the next four wells has a minimal impact on our overall interest in the Beetaloo, which remains at 22.5 per cent. This demonstrates the optionality afforded by the DSUs, which enable Falcon to strategically and efficiently deploy its capital. This reduction in our participation in the next four wells significantly reduces our 2025 capital expenditure whilst at the same time leaving us very well positioned to capture the overall success of the Beetaloo."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's technical adviser. 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 (American Association of Petroleum Geologists).

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

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

About Tamboran (B2) Pty. Ltd.

Tamboran (B1) Pty. Ltd. is the 100-per-cent holder of Tamboran B2, with Tamboran B1 being a 50/50 joint venture between Tamboran Resources Corp. and Daly Waters Energy LP.

Tamboran Resources is a natural gas company listed on the New York Stock Exchange (TBN) and Australian Securities Exchange (TBN). Tamboran is focused on playing a constructive role in the global energy transition toward a lower-carbon future by developing the significant low-carbon-dioxide gas resource within the Beetaloo basin through cutting-edge drilling and completion design technology as well as management's experience in successfully commercializing unconventional shale in North America.

Bryan Sheffield of Daly Waters Energy is a highly successful investor and has made significant returns in the U.S. unconventional energy sector in the past. He was founder of Parsley Energy Inc., an independent unconventional oil and gas producer in the Permian basin in Texas, and previously served as its chairman and chief executive officer. Parsley Energy was acquired for over $7-billion (U.S.) by Pioneer Natural Resources Company.

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