2024-03-26 09:25 ET - News Release 

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD - SHENANDOAH SOUTH - 1H WELL IP60 DAY FLOW RATES OF 3.0 MMCF/D (NORMALISED TO 6.0 MMCF/D)

Falcon Oil & Gas Ltd.'s Shenandoah South 1H (SS-1H) well in EP117 has achieved above commercial IP60 flow rate of three million cubic feet/day (normalized to six MMcf/d over 1,000 metres).

Highlights are as follows: 

• The SS-1H well in EP117 achieved an average 60-day initial production (IP60) flow rate of 3.0 million cubic feet per day (MMcf/d) over the 1,644-foot (501 metres), 10 stage stimulated length within the Amungee Member B-Shale, normalized to 6.0 MMcf/d over 3,281-feet (1,000 metres).
• Exit rate trajectory after the 60 days of flow testing showed a steady low declining curve at 2.76 MMcf/d over the stimulated length (normalized at 5.52 MMcf/d per 3,281 feet) and stable reservoir back pressure of 530 psi.
• The SS-1H IP60 flow test indicates that future development wells with lateral length of 10,000-foot (3,000 metres) may be capable of delivering average rates of 18.4 MMcf/d over the first 60 days of production.
• Results to date confirm that this region measuring more than 1 million gross acres below 8,850 feet (2,700 metres) is one of the best locations in the Beetaloo Basin to commence pilot development activities.
• Flow testing of the SS-1H well will continue for the next 30 days to achieve average IP90 flow rates to better determine the well's estimated ultimate recovery per well (EUR). IP90 flow rate results are expected to be announced in late April 2024.
• The Beetaloo JV Partners of Falcon and Tamboran B2 Pty Limited will continue to progress development plans for the proposed 40 MMcf/d Pilot Project at the Shenandoah South location. The project is expected to require six 10,000-foot development wells initially to achieve plateau production of 40 MMcf/d. Drilling of the first of these wells is planned to commence in Q2 2024 and the JV is targeting first gas in H1 2026.
• At the end of February 2024, Falcon held ~US$5 million in cash and has the benefit of a further A$16.67 million gross (~US$2.5 million net Falcon) carry to support immediate activities.
• Falcon is funded to commence drilling of the initial two wells in the program and will evaluate opportunities to support funding the remaining capital commitments to reach first production, including issuance of equity and/or debt, evaluation of pre-payment for gas from the proposed pilot project and potential farm-down opportunities. 

Philip O'Quigley, CEO of Falcon commented:

"The SS-1H IP60 flow rate announced today of 3.0 MMcf/d, normalized to 6.0 MMcf/d over 1,000 metres, demonstrates a steady low declining curve while holding its downhole pressure. This augurs well for the initial development in the Shenandoah South area as these rates continue to track average flow rates seen in the Marcellus Shale basin in the US."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas Ltd's Technical Advisor. Dr. Bada obtained his geology degree at the Eotvos 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. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland.. 

Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil & Gas Ltd.