Falcon Oil & Gas has provided an update on the stimulation campaign for the Shenandoah S2-2H ST1 ('SS-2H ST1') and Shenandoah South 4H ('SS-4H') wells in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas Australia's joint venture partner, Tamboran B2 ('Operator').
SS-2H ST1
- As previously announced stimulation operations were successfully completed over 35 stages across the 1,671-metre (5,483-feet) horizontal section of the Amungee Member B-shale with Liberty Energy (NYSE: LBRT) stimulation equipment.
- The SS-2H ST1 well is being prepared for the commencement of initial flow back and extended production testing.
- Targeting announcement of 30 day initial production (“IP30”) flow rates in April 2025.
SS-4H
- Commenced stimulation operations in January 2025.
- The Operator took proactive and precautionary steps to pause completion operations due to the detection of stress in a casing connection.
- Reinforcement activities are planned to be conducted in Q1 2025, aiming for stimulation activities to recommence in Q2 2025, as soon as the IP30 flow test is completed at SS-2H ST1.
- The deferred stimulation program should provide an opportunity to incorporate lessons from the SS-2H ST1 campaign.
- Targeting announcement of IP30 flow rates in mid-2025.
Working Capital
- Falcon Australia has received a A$4.7 million (~US$3 million) research and development tax offset in cash.
- The Group’s current cash balance is US$8.2 million.
Philip O’Quigley, CEO of Falcon commented:
'We continue to be extremely encouraged about the potential of the current stimulation program based on strong gas shows and other data observed whilst drilling, together with the completion of a successful stimulation program on SS-2H ST1 well. We look forward to updating the market on the IP30 flow test results from both wells as soon as they become available.'
Source: Falcon Oil & Gas
