Falcon Oil & Gas has announced that Shenandoah S2-2H ST1 achieved an average 60-day initial production ('IP60') flow rate of 6.8 million cubic feet per day ('MMcf/d') over 1,671-metres (5,483-foot) across a 35 stage stimulated horizontal within the Amungee Member B-Shale in the Beetaloo Sub-basin, Northern Territory, Australia, making it the highest IP60 result in the Beetaloo to date.
Points to note:
- The average flow rate of 12.4 MMcf/d over a normalized 10,000-foot horizontal section remains in-line with an 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 Beetaloo Sub-basin to the Australian domestic East Coast gas market that typically sells at a premium to Henry Hub in the United States.
- The exit rate maintains a steady, low-declining curve at 6.4 MMcf/d with a flowing wellhead pressure of ~720 psi and has exhibited less decline than that of the Shenandoah South 1H well (“SS-1H”) over the last 30 days of testing.
- For further details on the SS-2H ST1 flow test including a table, and charts please refer to Appendix A.
Drilling Campaign Gets Underway
- The 2025 drilling campaign has now commenced targeting up to three 10,000-foot horizontal wells to be drilled back-to-back over the next few months. This will complete the drilling phase of the five well Shenandoah South pilot program.
- As previously announced, Falcon Oil & Gas Australia Limited (“Falcon Australia”) has no cost exposure to the drilling of these three wells as it opted to reduce its participating interest in the three wells to 0%.
Philip O’Quigley, CEO of Falcon commented:
'The IP60 flow rate results announced today of 6.8 MMcf/d are truly stellar and mark another major data point in the Beetaloo Sub-basin, again demonstrating that it compares to the best shale wells in the United States. These results, coupled with the average 30-day initial production exceeding Falcon’s pre-drill commercial threshold of a normalised flow rate of 3 MMcf/d per 1,000 metres, all point towards the significant resource potential of the Beetaloo.
The commencement of the 2025 three well drilling campaign, which is the largest drilling campaign in the Beetaloo to date, will hopefully provide further evidence of the real commercial potential of the Beetaloo.
We look forward to updating the market as soon as these drilling results become available.'
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.
For further info, see Falcon's, latest Presentation
Source: Falcon Oil & Gas
