Falcon Oil starts stimulating new Beetaloo well

16th Feb 2023 17:41

(Sharecast News) - Falcon Oil & Gas announced the start of a well stimulation programme at the Amungee NW-2H well on Thursday.

The AIM-traded company said the A2H well was drilled in the Beetaloo sub-basin of Australia's Northern Territory in December, and included a 1,275-metre horizontal section within the Amungee Member B shale.

It said the stimulation programme was expected to take two to three weeks, and would include up to 24 stimulation stages over a 1,200-metre horizontal section.

The programme would be executed using US-style shale stimulation designs and techniques by the Australia-based Condor Energy Services, using five-and-a-half inch casing.

Falcon said such a casing would allow the optimal placement of sand and fluid at an increased rate to the perforations during stimulation, and had been proven to deliver significantly higher production rates.

After the stimulation programme, a four-week flow back of fluid was expected before the installation of production tubing.

The 30-day initial production rates were expected to be released early in the second quarter of the year.

"We are delighted to announce the commencement of stimulation operations with our joint venture operator, Tamboran Resources," said chief executive officer Philip O'Quigley.

"This is an exciting phase of operations in the Beetaloo with the potential for obtaining production rates that would support the joint venture moving to a multi-well pilot development program in 2023-2024.

"We look forward to updating the market on these very important flow rates as soon as they become available."

At 1621 GMT, shares in Falcon Oil & Gas were up 6.48% at 10.27p.

Reporting by Josh White for Sharecast.com.