Falcon Oil & Gas Ltd. (FOG.L) Planned Stage 3 Work Programme – Beetaloo Sub-Basin

25 January 2022 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to provide details of the Stage 3 work programme in the Beetaloo Sub-Basin, Northern Territory, Australia with its joint venture partner, Origin Energy B2 Pty Ltd., a wholly owned subsidiary of Origin Energy Limited (“Origin”).

2022 will see Falcon and Origin progressing to the Stage 3 work programme of the restated Farm-Out Agreement. , which will include the drilling, fracture stimulation and extended production test of two horizontal wells.

Stage 3 Planned Work Programme includes:

  • acquisition of 40 km2 of 3D seismic survey on the Amungee NW-1H well lease area;
  • drilling two 2,000+ metre horizontal wells on the Amungee NW-1H pad, targeting the Amungee Member (formerly knowns as the Middle Velkerri) B Shale;
  • fracture stimulation of both horizontal wells;
  • extended production testing of between 90 and 180 days on each well;
  • follow up core and log analysis of the very encouraging preliminary evaluation of the 2021 Velkerri 76 well results; and
  • further evaluation of the results of the Kyalla 117 N2-1H well to better understand the issues encountered during testing in 2021.

Stage 3 Drilling and 3D Programme Objectives

  • The acquisition and interpretation of 3D seismic will be used to:
    • plan the drilling of the 2022 wells and any future horizontal wells in the area;
    • optimise horizontal well trajectories; and
    • assess the viability of future 3D surveys in the Basin.
  • The two horizontal wells are being designed to:
    • demonstrate scalability of the Amungee NW-1H results over longer laterals; and
    • establish operational and cost efficiencies by drilling more than one well from the same pad.

Philip O’Quigley (CEO of Falcon) commented:
“This is an extremely important period for the Beetaloo Sub-Basin and we are delighted to have confirmed a high-impact, extensive and really exciting work programme for the joint venture.

We will be focusing our attention on the Amungee Member B Shale, following the 2021 results at Amungee NW-1H, which suggested a normalised gas flow rate equivalent to around 5,000 Mscf/d per 1,000m of horizontal section; a potentially commercial flow rate. Falcon remains largely (circa 75%) carried for 2022, with the balance of costs being funded from existing resources. Positive results here will provide a further line of sight to the commercialisation of the Beetaloo and could lead to a pilot development program in 2023. Confirmation on the commencement on the Stage 3 work programme will be provided in the coming months as scheduling is refined.

In addition to our own acreage, we also look forward to the gas flow results from the current testing of two wells in the neighbouring Santos-operated EP 161, also targeting the Amungee Member dry gas play. We expect these results to be communicated to the market shortly and believe that these will prove to be another important moment for the nationally significant Beetaloo Sub-Basin.”

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

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. Falcon Oil & Gas Australia Limited and a wholly-owned subsidiary of Origin Energy Limited (ASX: ORG) (“Origin”) are joint venture partners in respect of the Beetaloo project.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com


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