Falcon Oil & Gas Ltd. is pleased to announce that Shenandoah S2-2H ST1 (“SS-2H ST1”) achieved an average 30-day initial production (“IP30”) flow rate of 7.2 million cubic feet per day (“MMcf/d”) over 1,671-metres (5,483-foot) across a 35 stage stimulated length within the Amungee Member B-Shale in the Beetaloo Sub-basin, Northern Territory, Australia, making it the highest IP30 result in the Beetaloo to date.
Points to note:
The normalized flow rate of 13.2 MMcf/d over an extrapolated 10,000-foot horizontal section is in-line with the average of more than 11,000 wells in the Marcellus Shale dry gas area on production over a 12-month period. The results demonstrate the commercial deliverability of gas from the Amungee Member B-Shale in the Australian East Coast gas market that typically sells at a premium to Henry Hub in the United States and under long term CPI-linked contracts.
The exit rate trajectory continues a steady, low-declining curve at 6.7 MMcf/d (normalized at 12.2 MMcf/d per 10,000-feet) with a flowing wellhead pressure of ~910 psi. The steady state decline curve on SS-2H ST1 is consistent with that achieved from the Shenandoah South 1H well (“SS-1H”).
For further details on the SS-2H ST1 flow test including a table, and charts please refer to Appendix A.
Development activity
The Shenandoah South drilling campaign is planned to commence in July 2025, targeting up to three 10,000-foot horizontal wells and completed with up to 60 stimulation stages from the SS2 well pad. As previously announced, Falcon Oil & Gas Australia Limited (“Falcon Australia”) has opted to reduce its participating interest in the three wells to 0%.
Once completed, the five wells on the SS2 pad are planned to be tied into the Sturt Plateau Compression Facility (“SPCF”) to feed into a 40 MMcf/d take-or-pay Gas Sales Agreement (“GSA”) with the Northern Territory Government. Production remains on track to commence in mid-2026, subject to standard regulatory and stakeholder approvals and favourable weather conditions.
The Shenandoah South 4H (“SS-4H”) well is planned to be completed and flow tested by the end of 2025, with the remaining wells drilled in the 2025 campaign to be completed during 1H 2026.
Completion of the remaining four wells will incorporate lessons from the SS-1H and SS-2H ST1 wells.
The five wells are expected to deliver the required 40 MMcf/d volume under a binding take-or-pay agreement with the Northern Territory Government.
Philip O’Quigley, CEO of Falcon commented:
“The IP30 flow rate results announced today of 7.2 MMcf/d, are truly stellar and marks another major data point in the Beetaloo Sub-basin again demonstrating that it compares to the best shale wells in the United States. Not only did the results exceed Falcon’s pre-drill commercial threshold of a normalised flow rate of 3 MMcf/d per 1,000 metres but had similar flow rates and pressures to SS-1H and SS-2H ST1, which all point towards the significant resource potential of the Beetaloo.
Falcon looks forward to the planned completion and testing of SS-4H by the end of 2025 and also to observing the results from the next three wells of the Shenandoah South drilling program and the additional milestones they will establish.
As further results become available, we look forward to updating the market further”