Falcon Oil & Gas has announced the commencement of the 2024 drilling programme with the spudding of the Shenandoah South 2H ('SS2H') horizontal well in exploration permit 98 in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas Australia’s joint venture partner, Tamboran B2.
Following the drilling of the SS2H well, Tamboran B2 will immediately move to the Shenandoah South 3H ('SS3H') well off the same well pad location ahead of the stimulation program.
Both wells will be drilled with a H&P super-spec FlexRig® Flex 3 Rig and will include a horizontal section of approximately 3,000 metres and will target the Amungee Member B-shale at an estimated target depth of 3,020 metres. Each well is expected to be drilled in 30 days.
The wells will be stimulated with up to 60 stages utilising the Liberty Energy modern frac fleet currently being mobilised from the US to Australia. The increased efficiency and performance of the Liberty fleet is expected to result in a material increase in the completed stages per day and optimised gas flows.
Initial flow test results from each well are expected in Q1 2025. Once flow testing is complete, both wells will be suspended as future producers to supply the proposed 40 million cubic feet per day (MMcf/d) Shenandoah South Pilot Project, which is expected to commence production in H1 2026, subject to final stakeholder and regulatory approvals.
The two well program will be the largest single campaign in the Beetaloo Sub-basin to date. An additional four well program is planned for 2025 which will complete the drilling for the proposed Shenandoah South Pilot Project that will supply 40 MMcf/d to the Northern Territory government.
Falcon Australia will participate in both wells in the Shenandoah South Pilot Project at its elected participating interest of 5%.
Philip O’Quigley, CEO of Falcon commented:
'The spudding of the SS2H horizontal well, which is the first of the planned two horizontal wells to be drilled in 2024, is an exciting next step in the development of the Beetaloo Sub-basin. Following on from the success of the Shenandoah South 1H well announced earlier this year, and using the same drilling company, H&P, together with the arrival of the Liberty frac fleet, capable of materially increasing the stimulation intensity, we are really excited about being able to demonstrate the deliverability of the Amungee Member B-shale over 3,000 metre horizonal sections.'
Background
Falcon Oil & Gas Australia is a c.98% owned subsidiary of Falcon Oil & Gas.
Falcon Australia is one of the two registered holders of approximately 4.6 million gross acres (~ 18,619 km2), 1 million net acres, of three Exploration Permits (EP 76, EP98 and EP117) in the Beetaloo Sub-basin, Northern Territory, Australia with Tamboran (B2) Pty Limited appointed as operator for the joint venture. The Beetaloo Sub-basin is located 600 kilometres south of Darwin, close to infrastructure including a highway, a pipeline and a railway, offering transport options to the Australian market and beyond via the existing and developing liquified natural gas capacity in Darwin.
The Beetaloo Sub-basin is a Proterozoic and Cambrian tight oil and gas basin. In its entirety, the Beetaloo Sub-basin covers approximately 8.7 million acres (~ 35,260 km2) and is a relatively underexplored onshore exploration basin. The area is also remote and sparsely populated. Considering all these factors, the Board believes the Beetaloo Sub-basin has shale oil and shale gas potential.
Source: Falcon Oil & Gas
