Falcon Oil & Gas Ltd. (AIM:FOG) Operational Update on Amungee NW-2H Drilling

23 December 2022 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that drilling operations, including casing and cementing, at the Amungee NW-2H (“A2H”) well have been successfully completed.

The A2H well has been drilled to a total depth (TD) of 3,883 metres, including a 1,275-metre horizontal section within the Amungee Member B Shale (formerly known as the Middle Velkerri B-shale), in the Beetaloo Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B1) Pty Limited (“Tamboran”).

Key points to note:

• The A2H well intersected the Amungee Member B Shale at 2,413 metres vertical depth.
• Preliminary drilling data confirms elevated gas shows with high concentration C₁, (methane) observed.
• Drilling was completed in 38 days (spud to TD) and a total cost of A$14.1 million (excluding casing and cementing), slightly ahead of pre-drill design days and budget. Falcon remains fully carried for the cost of these operations.
• Up to 24 stimulation stages are planned within the Amungee Member B Shale when operations are expected to resume in the first quarter of 2023, subject to weather conditions.
• Stimulation and flow testing of the A2H well over the 1,275-metre horizontal section will enhance the joint venture’s understanding of the potential commerciality of the Amungee Member B Shale.
• The joint venture is currently undertaking a comprehensive review of all available data before finalising the location of the final well under the Stage 3 work programme, targeted to be drilled in 2023.

Philip O ’ Quigley , Falcon’s CEO , commented :
“We are delighted that the joint venture’s new operator, Tamboran Resources Limited, has successfully drilled and cased the Amungee NW-2H well and look forward to the next phase of operations with the fracture stimulation in the New Year and obtaining productions rates that would support the joint venture moving to a multi-well pilot development program in 2023/2024. We will continue to update the market as results become available.”

Ends.

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