All TSX-V Trades

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.

Takeaway:These are exellent result. Therefore now more so than ever follow these instuctions: Put your shares in the Vault! Quadruple spin that dial to the left then again to the right! 

I reiterate  that "Do not sell any of your shares for less than $10.00

"A hazug embert könnyebb utolérni, mint a sánta kutyát" - Hungarian proverb.

Backroom Boys! You just don't get it!

In an honest world this stock would be trading at least $1.00

I'm extremely happy with the results. Please watch Mr. Philip O'Quigley's video podcast.

https://youtu.be/y1JFnTV-inc?si=6TPawZ8cQoIFQ6If

Falcon Oil's SS-1H reaches 3.2 mmcfpd IP30 flow rate

 2024-02-26 09:49 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - STELLAR IP30 DAY FLOW RATES ADVANCES THE BEETALOO TO PILOT DEVELOPMENT

Falcon Oil & Gas Ltd.'s Shenandoah South 1H (SS-1H) well in EP117 has achieved commercial IP30 flow rate of 3.2 million cubic feet per day (normalized to 6.4 million cubic feet per day over 1,000 metres), significantly higher than predrill expectations.

Highlights are as follows:

The SS-1H well in EP 117 achieved an average 30-day initial production (IP30) flow rate of 3.2 million cubic feet per day (million cubic feet per day) over the 1,644-foot (501 metres), 10 stage stimulated length within the Amungee Member B-Shale, normalised to 6.4 million cubic feet per day over 3,281-feet (1,000 metres).

Results from the SS-1H well significantly exceeded pre-drill expectations and achieved what Falcon and its partners believe to be above the commercial threshold required to progress the Beetaloo to pilot development during 2024, subject to funding and key stakeholder approvals.

Exit rate trajectory after the 30 days of flow testing showed a steady low declining curve at 2.9 million cubic feet per day over the stimulated length (normalised at 5.8 million cubic feet per day per 3,281 feet) and stable reservoir back pressure of 575 psi.

The IP30 flow test extrapolates to ~19.5 million cubic feet per day for proposed future 10,000-foot (3,000 metres) development wells, in line with some of the highest flow rates achieved in the US Marcellus shale.

The geological rock properties at SS1-H, indicative of favourable well performance, met or exceed that of the US Marcellus shale, including reservoir pressure, effective porosity and gas-in-place. This creates the potential to result in long-term, low decline gas production, ultimately leading to very significant estimated ultimate recovery per well (EUR).

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 60 days to achieve average IP90 flow rates to better determine the well's EUR. IP90 flow rate results are expected to be announced in April 2024.

The Beetaloo JV Partners of Falcon and Tamboran B2 Pty Limited will now progress development plans for the proposed 40 million cubic feet per day 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 million cubic feet per day. 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 January 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 IP30 flow rate announced today of 3.2 million cubic feet per day, normalised to 6.4 million cubic feet per day over 1,000 metres, are truly stellar and mark a major turning point in the Beetaloo Basin. Not only did the results exceed Falcon's pre-drill commercial threshold of a normalised flow rate of 3 million cubic feet per day by more than 100% but the geological properties evidenced in this part of the Basin, including reservoir pressure, effective porosity and gas-in-place all point towards the significant resource potential of the Basin. We will continue flow testing the well for the next 60 days to achieve an IP90 flow rate which will better determine what that resource potential is. We can now look forward with confidence to commencing the proposed 40 million cubic feet per day pilot development project which will start with the drilling of the first of six 10,000 ft development wells in Q2 2024, subject to stakeholder approval and funding, and look forward to updating the market as those plans begin to materialise."

Shenandoah South 1H flow results

The SS-1H well in permit EP 117 successfully achieved IP30 flow rates following the 10-stage stimulation program within the bottom 501 metres (1,644 ft) of the 1,020-metre (3,346 ft) lateral section in the Amungee Member B- Shale (depth of c. 9,957ft). The fracture stages had an average interval spacing of 50 metre (164ft) and the average proppant concentrations of 2,212 lbs/ft across the 10 main stages with a total of over 3.5 million pounds of sand placed.

Testing was carried out following the installation of production tubing and a three-week soaking period to allow for water used in the stimulation process to be absorbed by the shale. The soaking aims to increase the relative permeability to gas of the formation and enhance production performance.

During the initial draw down period from 25 January to 08 February (13.3 days) the choke was opened from 16/64 to 40/64 over staged intervals resulting in gas rates from 12.9 million cubic feet per day to 3.0 million cubic feet per day, with flowing wellhead pressures drawn down from 4,611 to 792 psi. During the subsequent flowing period from 08 Feb - 24 Feb (16.7 days) the choke was opened up to 43/64 at the beginning of the period, resulting in gas rates from 3.3 to 2.9 million cubic feet per day, with an average of 3.0 million cubic feet per day with flowing wellhead pressures drawn down from 792 to 578 psi. Total cumulative gas production during the IP30 test was 92.2 MMcf.

The well achieved an IP30 flow rate of 3.2 million cubic feet per day over the 501 metres (1,644 ft), normalised to 6.4 million cubic feet per day over 1,000 metres (3,481 ft), and 19.5 million cubic feet per day over 3,048 metres (10,000 ft) significantly exceeding Falcon's normalised pre-drill expectations and Falcon's estimated Beetaloo Basin commerciality threshold.

The SS-1H has demonstrated that the geological rock properties, indicative of favourable well performance, met or exceed the US Marcellus shale (incl. reservoir pressure, effective porosity and gas in place). The analysis of the gas recovered at SS-1H confirms that it is Dry Gas with the following composition (mole %): Methane 91.7, Ethane 2.8 and CO2 3.4. Flow testing has demonstrated pore pressure gradient of ~0.6 psi/ft, resulting in higher reservoir pressure at Shenandoah compared to all other Basin wells.

The SS-1H IP30 flow rate delivered the highest normalised rates achieved in the Beetaloo Basin to date, exceeding the previous normalised IP30 record achieved by the Tanumbirini 3H well in the Santos-operated EP 161 acreage in 2022. The SS-1H result continues to demonstrate that the deepest regions of the basin have the most consistent geology and deliver the highest flow rates and recoverable volumes. The SS-1H IP30 flow rate extrapolated over 10,000ft (3,048m) of 19.5 million cubic feet per day compares very favourably with the average US Marcellus Type Well.

Pilot Development Program

The results from the SS-1H well give the Beetaloo JV confidence to progress to the proposed 40 million cubic feet per day Pilot Project 9 million cubic feet per day net Falcon) in the Shenandoah South region. The JV is targeting first production from the project in H1 2026, which is expected to deliver volumes into the Northern Territory gas market over a 10-year plateau period, subject to completion of a binding Gas Sales Agreement, funding and key stakeholder approvals.

The program is expected to include six development wells drilled to 10,000 feet to achieve plateau production, the construction of the 40 million cubic feet per day Sturt Plateau Compression Facility (SPCF) and the 35-kilometre Sturt Plateau Pipeline (SPP) connecting the SPCF to the APA-owned Amadeus Gas Pipeline. Additional wells will be required over the project life, which are expected to be funded from future project cash flow.

Liberty Energy Inc (NYSE: LBRT), a leading North American energy services firm with significant operational and subsurface engineering expertise, plans to import a modern frac fleet into the Beetaloo Basin in 2024 to support the Shenandoah South Pilot Programme stimulation campaign. Liberty plans to dedicate a frac fleet and crew to the Beetaloo to reduce any potential for delays in mobilising equipment to site and increasing completion efficiencies while reducing costs of future stimulation programs. Liberty's presence in the Basin follows on from the previously announced similar arrangement with Helmerich and Payne (H&P), the largest drilling solutions provider in the US, whereby H&P imported a 2,000HP rig into the Beetaloo, which is expected to support a material reduction in drilling times and costs.

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.

Takeaway:These are exellent result. Therefore now more so than ever follow these instuctions: Put your shares in the Vault! Quadruple spin that dial to the left then again to the right! 

So hold and do not selll any of your shares under $10.00