Falcon is a global energy company with projects in Hungary, Australia & South Africa
Developing large acreage positions of unconventional and conventional oil and gas resources
Message: Falcon Oil & Gas Ltd - Notification of discovery - Kyalla 117 N2-1H ST2
FALCON OIL & GAS LTD. - NOTIFICATION OF DISCOVERY - KYALLA 117 N2-1H ST2
Falcon Oil & Gas Ltd.
Notification of Discovery - Kyalla 117 N2-1H ST2
19 January 2021 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that Origin Energy B2 Pty Ltd., a subsidiary of Origin Energy Resources Limited (“ Origin ”), our Joint Venture partner, has submitted a notification of discovery and an initial report on discovery (“ Notification of Discovery ”) to the Department of Industry, Tourism and Trade of the Northern Territory (“ DITT ”) on the Kyalla 117 N2-1H ST2 well (“ Kyalla 117 ”) in the Beetaloo Sub-basin, Australia. The Notification of Discovery is a requirement under s64(1) of the Petroleum Act 1984 (Northern Territory) and the NT Guidelines for reporting a petroleum discovery.
Details of the Notification of Discovery from Origin to the DITT are as follows:
- The Notification of Discovery is supported by preliminary production test data and petrophysical modelling.
- This follows the introduction of nitrogen to lift the fluids in Kyalla 117, which has enabled Kyalla 117 to flow unassisted for a period of seventeen hours.
- Unassisted gas flow rates ranging between 0.4-0.6 MMscf/d over seventeen hours were recorded.
- Flow back of hydraulic fracture stimulation water to surface over the same period, averaged between 400-600 bbl/d.
- Initial analysis suggests a liquid-rich gas composition with less than 1% CO 2 .
- Condensate shows were also observed.
- These early-stage flow rates are preliminary indications of well performance, and an extended production test (“ EPT ”) will be required to determine the long-term performance of Kyalla 117.
- Longer-term measures will be put in place to flow back sufficient hydraulic fracture stimulation water to allow Kyalla 117 to flow continually without assistance and enable an EPT to continue in the coming months during the dry season.
- A further update will be provided when production testing has concluded, and detailed evaluation has been undertaken, expected to be in Q2 2021.
The Australian Government announced last week that it would invest A$217m in economic enabling infrastructure and upgrades to remote roads in the Northern Territory. These upgrades will provide quality infrastructure to support gas development and other industries in and around the Beetaloo Sub-basin. This is in addition to the A$50m being provided by the Australian Government to accelerate exploration activity in the Beetaloo announced last December.
This announcement contains inside information.
Philip O’Quigley (CEO of Falcon) commented:
“The Notification of Discovery and Initial Report issued by Origin mark an encouraging development and the results to date meet our objective to flow liquids rich gas from the Kyalla formation.
We look forward to our operator, Origin, putting in place longer term measures to flow back sufficient hydraulic fracture stimulation water to allow the well to flow continually without assistance and enable production testing to occur in the coming months during the dry season.
In addition to this we welcome the news from the Australian Government to invest a further A$217m in the Northern Territory in infrastructure to support gas development and other industries in and around the Beetaloo Sub-basin.
We will update the market when production testing has concluded, and a detailed evaluation has been undertaken.”
CONTACT DETAILS :
|Falcon Oil & Gas Ltd.||+353 1 676 8702|
|Philip O'Quigley, CEO||+353 87 814 7042|
|Anne Flynn, CFO||+353 1 676 9162|
|Cenkos Securities plc (NOMAD & Broker)|
|Neil McDonald / Derrick Lee||+44 131 220 9771|
This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd’s Head of Technical Operations. Dr. Bada obtained his geology degree at the Eötvös L. University in Budapest, Hungary and his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a member of AAPG.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil & gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.
Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil & Gas Ltd. Falcon Oil & Gas Australia Limited and a wholly-owned subsidiary of Origin Energy Limited (ASX: ORG) (“ Origin Energy ”) are joint venture partners in respect of the Beetaloo project.
For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com
About Origin Energy
Origin Energy is a leading Australian integrated energy company. Origin is a leading energy retailer with approximately 4.2 million customer accounts, has approximately 7,500 MW of owner and contracted power generation capacity and is also a large natural gas supplier. Origin is the upstream operator of Australia Pacific LNG, which supplies natural gas to domestic markets and exports LNG under long term contracts.
Glossary of terms
A$ Australian dollar
bbl/d Barrels per day
CO 2 Carbon dioxide
LNG Liquefied natural gas
MMscf/d Million standard cubic feet per day
NT Northern Territory
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