Falcon Oil's Amungee well flows at over one MMscf/d

2016-09-29 06:42 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD.: UPDATE ON HYDRAULIC STIMULATION OF AMUNGEE NW-1H

Falcon Oil & Gas Ltd. is providing the following technical update regarding the hydraulic stimulation of the horizontal Amungee NW-1H well in the Beetaloo basin, Australia.

Highlights of preliminary results from the Amungee NW-1H horizontal exploration well:

• Completion of 11 hydraulic stimulation stages along the 1,000-metre horizontal section in the Middle Velkerri B shale zone;
• Stimulation treatments were successfully executed, with 95 per cent of programmed proppant placed;
• Flowback of hydraulic fracture stimulation fluid to surface continues;
• Early-stage gas flow rates through the 4.5-inch casing are encouraging;
• The rates regularly exceed one million standard cubic feet per day and consistently range between 400,000 to 600,000 standard cubic feet per day;
• A workover rig is being mobilized to run production tubing and to commence an extended production test.

Philip O'Quigley, chief executive officer of Falcon, commented on the results:

"Preliminary results of the first horizontal exploration well in the Beetaloo are very encouraging. The planned testing program utilizing a production tubing string aims to evaluate the potential gas flow rate of the well.

"We look forward to updating the market when further results become available."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's head of technical operations. Dr. Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary, and his PhD at the Vrije Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.