FOG Falcon Oil & Gas Ltd.

 
TIDMFOG 
 
   Falcon Oil & Gas Ltd. 
 
   ("Falcon") 
 
   Operational Update - Kyalla 117 N2-1H ST2 
 
   25 November 2020 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) provides 
an update on exploration activity in the Beetaloo Sub-basin, Northern 
Territory, Australia following the successful hydraulic stimulation of 
the Kyalla 117 N2-1H ST2 well ("the Well"). 
 
   As announced on 4 November 2020, flowback operations of the fracture 
stimulation fluid commenced in early October before the Well was shut in 
and production tubing was successfully installed, with flowback 
operations recommencing in late October. 
 
   The Well continues to flow back fracture stimulation fluid, with some 
gas shows; however, a measurable gas breakthrough that would allow the 
commencement of extended production testing to assess the extent of the 
resource that may be present has yet to occur. 
 
   Data collected and analysed to guide ongoing operations is showing 
greater pressures in the horizontal section of the Well than in the 
surrounding reservoir, due to the saline content and density of the 
flowback fluid and the hydrostatic column weight of this fluid in the 
vertical section. This pressure difference can prevent the flow of gas 
from the reservoir into the fractures and then to surface and it is not 
unusual in shale plays to observe the salinity and density of the 
flowback fluid to increase as salt easily migrates from the formation. 
 
   Operations are now being planned to re-enter the Well with coiled tubing 
and apply nitrogen lift techniques to lower pressures in the Well and 
assist with achieving and sustaining gas breakthrough that, if 
successful, will allow extended production testing to commence. This 
technique is not uncommon and was applied to the successful Amungee 
NW1-1H well in 2016. 
 
   The timing of coiled tubing activities and the nitrogen lift are being 
considered as the wet season approaches, with health, safety, 
environment and cost considerations in mind. If a decision is made to 
temporarily shut-in the Well, operations will resume in early 2021. 
 
   As is the nature of exploration and appraisal, Falcon and its partner, 
Origin, are continually responding to the data gathered through 
operations to inform ongoing activities. 
 
   Other data collected to date remains positive. In particular, core 
analysis indicates mature hydrocarbons and good permeability (natural 
pathways for gas to flow) and mud logs indicate liquids rich gas. The 
fracture stimulation of the well was successful and the integrity of the 
well remains. 
 
   Further updates will be provided to the market as appropriate. 
 
   Philip O'Quigley (CEO of Falcon) commented: 
 
   "Based on all the technical data gathered from conventional cores, 
sidewall cores, DFIT's and extensive wireline logging, together with the 
successful completion of the hydraulic fracture stimulation, we remain 
optimistic about the potential outcome of the production test. While we 
have not had a successful flow rate to date, our ongoing goal is that 
the planned Well activities will support a successful outcome" 
 
   Ends. 
 
   CONTACT DETAILS: 
 
 
 
 
Falcon Oil & Gas Ltd.             +353 1 676 8702 
Philip O'Quigley, CEO            +353 87 814 7042 
Anne Flynn, CFO                   +353 1 676 9162 
 
Cenkos Securities plc (NOMAD & 
 Broker) 
Neil McDonald / Derrick Lee      +44 131 220 9771 
 
 
   This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & 
Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology 
degree at the Eötvös L. University in Budapest, Hungary and 
his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a 
member of AAPG. 
 
   About Falcon Oil & Gas Ltd. 
 
   Falcon Oil & Gas Ltd is an international oil & gas company engaged in 
the exploration and development of unconventional oil and gas assets, 
with the current portfolio focused in Australia, South Africa and 
Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, 
Canada and headquartered in Dublin, Ireland with a technical team based 
in Budapest, Hungary. 
 
   Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil 
& Gas Ltd.  Falcon Oil & Gas Australia Limited and a wholly-owned 
subsidiary of Origin Energy Limited (ASX: ORG) ("Origin Energy") are 
joint venture partners in respect of the Beetaloo project. 
 
   For further information on Falcon Oil & Gas Ltd. please visit 
https://www.globenewswire.com/Tracker?data=XByUVf8JAhv2IXf1fuFsMhgohrtveIdyE070MhjEDPygonxGzpkasOwnypj5dXKUups9a6FbWrWWK30yjZLdJcvsHttQsBx-qdP8ULJQdpo= 
www.falconoilandgas.com 
 
   About Origin Energy 
 
   Origin Energy is a leading Australian integrated energy company. Origin 
is a leading energy retailer with approximately 4.2 million customer 
accounts, has approximately 7,500 MW of owner and contracted power 
generation capacity and is also a large natural gas supplier. Origin is 
the upstream operator of Australia Pacific LNG, which supplies natural 
gas to domestic markets and exports LNG under long term contracts. 
 
   www.originenergy.com.au 
 
   Glossary of terms 
 
   DFIT                        Diagnostic fracture injection test 
 
   LNG                         Liquefied natural gas 
 
   MW                          Megawatt 
 
   Origin                      A wholly owned subsidiary of Origin Energy 
Limited (ASX: ORG) 
 
   Advisory regarding forward looking statements 
 
   Certain information in this press release may constitute forward-looking 
information. Any statements that are contained in this news release that 
are not statements of historical fact may be deemed to be 
forward-looking information. Forward-looking information typically 
contains statements with words such as "may", "will", "should", "expect", 
"intend", "plan", "anticipate", "believe", "estimate", "projects", 
"dependent", "potential", "scheduled", "forecast", "outlook", "budget", 
"hope", "support" or the negative of those terms or similar words 
suggesting future outcomes.  In particular, forward-looking information 
in this press release includes, but is not limited to, comments made 
with respect to the type, number, schedule, stimulating, testing and 
objectives of the wells to be drilled in the Beetaloo Sub-basin 
Australia, plans to re-enter the Well with coiled tubing and apply 
nitrogen lift techniques and the likelihood of such operations being 
successful, the prospectivity of the Middle Velkerri and Kyalla plays 
and the prospect of the exploration programme being brought to 
commerciality. This information is based on current expectations that 
are subject to significant risks and uncertainties that are difficult to 
predict. The risks, assumptions and other factors that could influence 
actual results include risks associated with fluctuations in market 
prices for shale gas; risks related to the exploration, development and 
production of shale gas reserves; general economic, market and business 
conditions; substantial capital requirements; uncertainties inherent in 
estimating quantities of reserves and resources; extent of, and cost of 
compliance with, government laws and regulations and the effect of 
changes in such laws and regulations; the need to obtain regulatory 
approvals before development commences; environmental risks and hazards 
and the cost of compliance with environmental regulations; aboriginal 
claims; risks and uncertainties associated with wellbore or reservoir 
conditions; inherent risks and hazards with operations such as 
mechanical or pipe failure, cratering and other dangerous conditions; 
potential cost overruns, drilling wells is speculative, often involving 
significant costs that may be more than estimated and may not result in 
any discoveries; variations in foreign exchange rates; competition for 
capital, equipment, new leases, pipeline capacity and skilled personnel; 
the failure of the holder of licenses, leases and permits to meet 
requirements of such; changes in royalty regimes; failure to accurately 
estimate abandonment and reclamation costs; inaccurate estimates and 
assumptions by management and their joint venture partners; 
effectiveness of internal controls; the potential lack of available 
drilling equipment; failure to obtain or keep key personnel; title 
deficiencies; geo-political risks; and risk of litigation. 
 
   Readers are cautioned that the foregoing list of important factors is 
not exhaustive and that these factors and risks are difficult to 
predict. Actual results might differ materially from results suggested 
in any forward-looking statements.  Falcon assumes no obligation to 
update the forward-looking statements, or to update the reasons why 
actual results could differ from those reflected in the forward 
looking-statements unless and until required by securities laws 
applicable to Falcon. Additional information identifying risks and 
uncertainties is contained in Falcon's filings with the Canadian 
securities regulators, which filings are available at 
https://www.globenewswire.com/Tracker?data=XByUVf8JAhv2IXf1fuFsMkoPQT1OZPWkM4gPhAN-_OrMGQ-NUQr16yn6dz8tPmYDwdXfXLjFXhzK3kE3hqVkUw== 
www.sedar.com, including under "Risk Factors" in the Annual Information 
Form. 
 
   Neither the TSX Venture Exchange nor its Regulation Services Provider 
(as that term is defined in the policies of the TSX Venture Exchange) 
accepts responsibility for the adequacy or accuracy of this release. 
 
 
 
 
 
 

(END) Dow Jones Newswires

November 25, 2020 02:00 ET (07:00 GMT)

Falcon Oil & Gas (LSE:FOG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Falcon Oil & Gas (LSE:FOG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024