Falcon Oil & Gas Ltd Secures Northern Territory Gas Sale Approval
Falcon Oil & Gas Ltd. Achieves Key Approval in Beetaloo Sub-basin
Company Overview
Falcon Oil & Gas Ltd. (“Falcon”) is delighted to share that its subsidiary, Falcon Oil & Gas Australia Limited, along with its joint venture partner, Tamboran (B2) Pty Limited, has received approval for the Beneficial Use of Gas (BUG) agreement from the Northern Territory Government (NTG). This exciting development will enable the sale of appraisal gas produced from the Shenandoah South Pilot Project.
Highlights of the Approval
The approval signifies a pivotal moment for Falcon and its partners, allowing them to market gas extracted from EP98 and EP117 in the Beetaloo sub-basin in accordance with the new BUG legislation.
Implications of the Agreement
This is notably the first approval granted under the new BUG legislation by the NTG, which brings a host of exciting prospects for gas sales and energy production. The approval facilitates a structured path towards selling appraisal gas amounting to up to 60 terajoules (TJ) daily from the Pilot Project for a duration of three years, subject to specific terms detailed in the agreement.
Additionally, the partners have already secured a contract to supply 40 million cubic feet per day (MMcf/d) of gas to the NTG until mid-2041, enhancing energy security for the region.
Construction Plans and Timeline
The approval opens the avenue for the construction of the A$140 million Sturt Plateau Compression Facility (SPCF), which will aid in processing the extracted gas. Noteworthy is that Falcon assumes no cost liabilities for the facility’s construction, marking a strategic financial advantage.
Gas sales to the NTG via the SPCF are anticipated to commence around mid-2026, although this is contingent upon weather conditions and final stakeholder approvals.
Advancing the Gas Drilling Campaign
Simultaneously, the 2025 drilling campaign continues to make significant strides. The intermediate section of all three wells—S2-1H, S2-3H, and S2-5H—has been successfully drilled, with the horizontal drilling of the S2-5H well currently underway in the Amungee B Shale. This campaign represents Falcon's first multi-well drilling program using an innovative batch drilling technique in the Beetaloo Basin.
Financial Outlook and Strategic Decisions
Falcon has strategically minimized its financial involvement in these operations by reducing its participating interest in the three wells to 0%. However, Falcon holds a 5% interest in the stimulation of the S2-4H well, which is expected to be executed in the fourth quarter of 2025.
Leadership Vision
CEO Philip O’Quigley expressed enthusiasm regarding this operational expansion in the Beetaloo region, highlighting the collective efforts in batch drilling and the advancing infrastructure initiatives including the commencement of the Sturt Plateau Pipeline by APA Group, which entails an A$70 million investment for a 37-kilometre construction.
Connecting Stakeholders
Falcon Oil & Gas Ltd continues to prioritize communication and engagement with stakeholders throughout its ventures. The company has made significant progress in securing necessary agreements with local Native Title Holders, which is essential for moving these projects forward.
Contact Information:
For further inquiries, please reach out to:
Falcon Oil & Gas Ltd.
Phone: +353 1 676 8702
Philip O’Quigley, CEO
Phone: +353 87 814 7042
Anne Flynn, CFO
Phone: +353 1 676 9162
About Falcon Oil & Gas Ltd.
With a commitment to the exploration and development of unconventional oil and gas resources, Falcon Oil & Gas Ltd. is poised to capitalize on its extensive portfolio that prominently features assets in Australia. The company operates under the umbrella of Falcon Oil & Gas Australia Limited, a majority-owned subsidiary, to maximize efficiencies and production capabilities.
Frequently Asked Questions
What was the key approval granted to Falcon Oil & Gas Ltd.?
Falcon received approval from the Northern Territory Government to proceed with the Beneficial Use of Gas agreement for the sale of appraisal gas from the Shenandoah South Pilot Project.
What does the BUG legislation entail?
The Beneficial Use of Gas legislation allows the sale and handling of appraisal gas in designated areas, facilitating regional energy security and development.
When are gas sales expected to commence?
Gas sales via the Sturt Plateau Compression Facility are expected to begin around mid-2026, pending final approvals and weather conditions.
How much gas is Falcon authorized to sell?
Falcon has authorization to sell up to 60 terajoules (TJ) of gas per day from the Pilot Project.
What financial model is Falcon using for its drilling campaign?
Falcon has reduced its financial exposure by lowering its participating interest in several wells to 0%, aiming to mitigate costs while still pursuing operational goals.
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