Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that the Shenandoah South 1H (SS-1H) well in EP117 achieved above commercial IP90 flow rate of 2.9 MMcf/d (normalised to 5.8 MMcf/d over 1,000 metres).
Highlights are as follows:
- The SS-1H well in EP117 achieved an average 90-day initial production (IP90) flow rate of 2.9 million cubic feet per day (MMcf/d) over the 1,644-foot (501 metres), 10 stage stimulated length within the Amungee Member B-Shale, normalised to 5.8 MMcf/d over 3,281-feet (1,000 metres).
- On completion of the IP90 flow test, the well was delivering 2.7 MMcf/d, normalized to 5.4 MMcf/d over 3,281-feet (1,000 metres) at a pressure of 518 psi prior to being shut-in.
- The SS-1H flow test indicates that future development wells with lateral lengths of 10,000 feet may be capable of delivering average rates of 17.8 MMcf/d over the first 90 days of production.
- The SS-1H well has demonstrated steady gas flows and decline profiles in line with some of the most prolific regions of the Marcellus Shale in the US.
- The well will now be shut in and suspended as a potential future production well.
- The Beetaloo Joint Venture Partners (BJV) of Falcon Australia and Tamboran B2 Pty Limited will continue to undertake Front End Engineering and Design (FEED) studies on the proposed Shenandoah South Pilot Project. The Company expects to take Final Investment Decision (FID) in mid-2024, subject to funding and key stakeholder approvals.
- The strong SS-1H result has further validated the decision to progress with the pilot project in the Shenandoah South region within the deep shale in the Beetaloo West . The 1 million acres of deep shale in the Beetaloo West, at a similar depth to SS-1H, has the potential to deliver the BJV’s production ambition of 2 Bcf/d (equivalent to more than 13.0 million tonnes per annum of LNG export capacity) for 40 years from a single landing zone.
- At the end of March 2024, Falcon held ~US$4.3 million in cash, US$4.9m was raised in April 2024 as part of an equity raise and US$4m for the sale of overriding royalty interests (ORRIs). Falcon Australia also has the benefit of a net carry of a further US$2.5 million.
- Falcon is now fully funded for it’s share of the drilling and testing of the initial two wells in the program together with the acquisition and processing of the proposed 3D programme (330km2).
Philip O’Quigley, CEO of Falcon commented:
“The SS-1H IP90 flow rate announced today of 2.9 MMcf/d, normalised to 5.8 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.”
Peak rate
Actual (501m, 1,644 ft): 12.9
Normalized (1,000m, 3,281 ft): N/A
Normalized (10,000 ft): N/A
Average IP30 flow rate
Actual (501m, 1,644 ft): 3.2
Normalized (1,000m, 3,281 ft): 6.4
Normalized (10,000 ft): 19.5
IP30 exit rate
Actual (501m, 1,644 ft): 2.9
Normalized (1,000m, 3,281 ft): 5.8
Normalized (10,000 ft): 17.6
Average IP60 flow rate
Actual (501m, 1,644 ft): 3.0
Normalized (1,000m, 3,281 ft): 6.0
Normalized (10,000 ft): 18.4
IP60 exit rate
Actual (501m, 1,644 ft): 2.8
Normalized (1,000m, 3,281 ft): 5.5
Normalized (10,000 ft): 16.8
Average IP90 flow rate
Actual (501m, 1,644 ft): 2.9
Normalized (1,000m, 3,281 ft): 5.8
Normalized (10,000 ft): 17.8
IP90 exit rate
Actual (501m, 1,644 ft): 2.7
Normalized (1,000m, 3,281 ft): 5.4
Normalized (10,000 ft): 16.4
Source: Tamboran