Falcon Oil completes Velkerri 76 S2-1 well

2021-10-15 06:40 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - PRELIMINARY RESULTS FROM VELKERRI 76 S2-1 WELL -- VERY ENCOURAGING

Drilling of Falcon Oil & Gas Ltd.'s Velkerri 76 S2-1 vertical appraisal well has been completed, with the well drilled to a vertical total depth (TD) of 2,129 metres in the Beetaloo subbasin, Northern Territory, Australia, with the company's joint venture partner, Origin Energy B2 Pty. Ltd., a wholly owned subsidiary of Origin Energy Ltd.

Preliminary evaluation of the Velkerri-76 well is very encouraging and confirms:

• The presence of four prospective intervals within the Amungee member (formerly known as the Middle Velkerri), the A, AB, B and C shales, as established in the Amungee NW-1/1H, Beetaloo W-1 and Kalala S-1 wells;
• The continuation of the regionally pervasive Amungee member within the Velkerri formation toward the eastern flank of the Beetaloo subbasin approximately 78 kilometres from the Amungee NW-1H and 73 kilometres from the Beetaloo W-1 wells;
• The Amungee member is likely within the wet gas maturity window as evidenced by mud gas data during drilling.

Ninety-three metres of continuous conventional core were acquired in the Velkerri B and AB shales and extensive wireline logging data were collected to enable detailed formation evaluation of the prospective zones within the Amungee member. The diagnostic fracture injection test (DFIT) is to be carried out shortly and will provide further understanding for future appraisal of the Velkerri wet gas play.

Philip O'Quigley, chief executive officer of Falcon, commented: "The preliminary drilling results at Velkerri 76, together with the revised normalized gas flow rate equivalent to five million standard cubic feet per day at Amungee NW-1H announced in September, 2021, is really exciting news for Falcon shareholders as attention shifts to future activity in the Beetaloo.

"Falcon is in a prime position within the Beetaloo subbasin with significant areal exposure to the Velkerri shales across a range of maturity windows, as established by the results from the five wells drilled in the work program to date.

"This further development at Velkerri 76 emphasizes the ever-growing significance of the Velkerri play.

"This is another very encouraging development for the nationally important Beetaloo subbasin and, with results to come from flow testing of two horizontal wells at the neighbouring Santos-operated blocks, which are also targeting the Velkerri play, we see now as a key period in the step towards commercialization of the Beetaloo."

About Falcon Oil & Gas Ltd.

Falcon Oil is an international oil and 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.