We the 13,455 longterm Falcon shareholders, along with Burlingame, Soliter, Sweetpea, Persistency are very pleased to announce that as expected...

the preliminary evaluation of the Kalala S-1 vertical exploration well confirms:

• The presence of a thick Middle Velkerri source rock sequence in the Beetaloo basin permit EP98, falling in a highly prospective gas mature depth window;
• A gross interval of over 500 metres shale gas with net pay exceeding 150 m;
• The presence of movable hydrocarbons in the form of elevated gas shows;
• A number of prominent good-quality sandy/silty reservoir sections measuring between 50 and 80 m in thickness, each representing potential candidates for horizontal drilling;
• Excellent potential for gas-mature, gas-saturated and quartz-rich source rocks that represent excellent exploration targets with material volumetric upside.

In addition to undertaking real-time geochemical analysis of cuttings while drilling, the company acquired extensive sidewall core and wireline data. The integration of these data will enable the company to characterize the main physical properties of the penetrated rocks including rock type, total organic carbon (TOC), frackability (mineralogy, rock mechanics), petrophysics (porosity and permeability) and gas saturation.

As planned, the well will be cased to TD and suspended while this further technical evaluation is undertaken.

Rig 185 will now be mobilized to the second well location, the Amungee NW-1 well, and drilling there is expected to start next week.

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Soly's reminder:

This is the first of the nine well drilling program. Our goal same as Burlingame's, Solite's, Sweetpea's or Persistency's: a trillion dollar payoff.