2024-08-30 02:00 ET - News Release

Falcon Oil & Gas Ltd.
(“Falcon” or “Company”)

Spudding of Shenandoah South 2H in Exploration Permit 98

30 August 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce the commencement of the 2024 drilling programme with the spudding of the Shenandoah South 2H (“SS2H”) horizontal well in exploration permit 98 in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s (“Falcon Australia”) joint venture partner, Tamboran (B2) Pty Limited (“Tamboran B2”).

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 a H&P super-spec 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 utilising the Liberty Energy modern frac fleet currently being mobilised from the US 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 optimised gas flows.

Initial flow test results from each well are expected in Q1 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 Sub-basin 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%.

Philip O’Quigley, CEO 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 Sub-basin. 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.”