Remarkable New Flow Rate at Beetaloo: Falcon Oil & Gas Update
Another Impressive IP30 Flow Test by Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. (“Falcon”) is thrilled to share the latest news regarding their ongoing exploration in the Beetaloo region. The recent flow test of the Shenandoah S2-2H ST1 well has generated excitement among stakeholders and the broader natural gas market. With an impressive average flow rate of 7.2 million cubic feet per day (MMcf/d) over 30 days, this outcome highlights the well's potential and positions Falcon as a leader in the exploration of unconventional gas resources.
Significant Flow Test Results
The average production observed at the SS-2H ST1 well reached a remarkable 7.2 MMcf/d across a stimulated length of 1,671 meters (5,483 feet). This result sets a new standard for the Beetaloo Sub-basin, as it stands as the highest IP30 recorded in the area to date. With a normalized flow rate of approximately 13.2 MMcf/d based on an extrapolated 10,000-foot horizontal section, the performance aligns well with the benchmarks of over 11,000 wells in the Marcellus Shale gas area.
Commercial Viability Demonstrated
The consistent performance of SS-2H ST1 reinforces the commercial viability of gas production from the Amungee Member B-Shale. Given that the East Coast Australian gas market often commands a premium compared to Henry Hub in the U.S., this realization opens the door for potential long-term contracts linked to the Consumer Price Index (CPI), promising exciting opportunities for Falcon moving forward.
Future Development Plans
Looking ahead, Falcon has ambitious plans for ongoing development in the Beetaloo region. The drilling campaign for Shenandoah South is projected to kick off in the near future, targeting up to three new horizontal wells, each completed with approximately 60 stimulation stages. Despite the decision to reduce participation in these wells to 0%, Falcon remains keen on exploring the resource potential further.
Progress Towards Greater Production
In an effort to foster full-scale production, the wells from the SS2 pad are slated to connect to the Sturt Plateau Compression Facility (SPCF), feeding into a 40 MMcf/d take-or-pay Gas Sales Agreement (GSA) with the Northern Territory Government. Production is on track to commence in the anticipated timeframe, subject to regulatory approvals and conditions.
Importance of SS4H and Remaining Wells
The SS-4H well is set for completion, with testing expected by the end of the year. Lessons learned from the SS-1H and SS-2H ST1 wells will be instrumental in optimizing these future operations. With the strategic planning for these wells, Falcon aims to fulfill its commitments under the GSA, leveraging its strengths in innovative drilling technology and operational efficiency.
Leadership Insight
Philip O’Quigley, CEO of Falcon, expressed his enthusiasm regarding these developments. He noted, “The stellar IP30 results confirm that our assets in the Beetaloo Sub-basin are on par with the best shale wells globally, indicating substantial resource potential. We are eager for the completion and testing of our upcoming wells to further substantiate our operations.”
This optimism is supported by the broader context of energy transition and increased demand for cleaner energy sources, positioning Falcon Oil & Gas Ltd. favorably for the future.
Frequently Asked Questions
What is the recent flow rate result for Falcon's well?
The recent flow test revealed a significant average IP30 flow rate of 7.2 MMcf/d for the SS-2H ST1 well, the highest recorded in the Beetaloo Sub-basin.
What does the commercial viability mean for Falcon?
It indicates that Falcon can produce natural gas competitively in the market, particularly as it may secure long-term contracts at favorable pricing.
When will production begin?
Production is expected to commence by mid-2026, contingent upon necessary regulatory approvals.
What future plans does Falcon have for drilling?
Falcon plans to initiate a drilling campaign targeting three horizontal wells with extensive stimulation stages to maximize gas recovery.
How does the SS-2H ST1 compare to other wells?
The SS-2H ST1 shows similar flow rates and pressures to previously tested wells, highlighting its competitive positioning within the region.
About The Author
Contact Hannah Lewis privately here. Or send an email with ATTN: Hannah Lewis as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
