Falcon Oil & Gas Ltd. - Operational Update including the Successful Drilling of Amungee NW 3H Horizontal Well

Falcon Oil & Gas Ltd.
(“Falcon”)

Operational Update including the Successful Drilling of Amungee NW 3H Horizontal Well

16 October 2023 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that drilling operations on the Amungee NW 3H (“A3H”) well in EP98 have been successfully completed with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited.

Details of operations are as follows:

• The A3H well was drilled, cased and cemented to a total measured depth (“TD”) of 3,837 metres, including a horizontal section of 1,100 metres in the Amungee Member B-shale.
  
  
• The well intersected the Amungee Member B-shale at a total vertical depth (“TVD”) of 2,272 metres and encountered significant gas shows, in line with pre-drill expectations.
  
  
• Drilling took 17.9 days, at an average rate of 214 metres per day, and at 20 days faster than the Amungee 2H (“A2H”) well, the Helmerich & Payne, Inc. (H&P), (NYSE: HP), super-spec FlexRig Flex 3 Rig delivered the anticipated drilling efficiencies.
  
  
• A stimulation program is planned for the second quarter of 2024, following the Northern Territory wet season.
  
  
• Total costs for the drilling and cementing of the A3H well was A$12.6 million. Cost reductions of A$1.8 million compared to A2H, demonstrates the application of learnings from previously drilled wells and the improvement in drilling technology with the H&P super-spec FlexRig Flex 3 Rig.
  
  

Shenandoah South 1H (“SS1H”) Update
Stimulation activities for the SS1H well in EP117 are on track to commence in November 2023 with IP30 flow rates anticipated in early 2024.

Appointment of Tennyson Securities
Falcon is pleased to announce the appointment of Tennyson Securities as joint broker, alongside Cavendish Securities Plc (“Cavendish”) Falcon’s current broker. Cavendish will continue as Falcon’s nominated advisor.

Philip O’Quigley, CEO of Falcon commented:

“We are delighted to have successfully completed the A3H horizontal well section and are very encouraged by the drilling days achieved by H&P in reaching TD at A3H and the cost reductions recorded relative to A2H. We now look forward to the next phase of operations in the Beetaloo with the stimulation and extended production testing of SS1H commencing in November. We will continue to update the market as results become available.”