Falcon Oil starts 2024 Beetaloo drilling programme

30th Aug 2024 11:04

(Sharecast News) - Falcon Oil & Gas announced the start of its 2024 drilling programme in the Beetaloo Sub-basin of Australia's Northern Territory on Friday, with the spudding of the Shenandoah South 2H (SS2H) horizontal well.

The AIM-traded firm said the drilling was part of a joint venture between Falcon Oil & Gas Australia and Tamboran B2.

Following the completion of the SS2H well, drilling would proceed immediately to the Shenandoah South 3H (SS3H) well, both of which would be located on the same well pad.

The wells would be drilled using a H&P super-spec FlexRig Flex 3 rig, each featuring a horizontal section of about 3,000 metres and targeting the Amungee Member B-shale at a depth of about 3,020 metres.

It said the drilling of each well was expected to take around 30 days.

The wells would be stimulated with up to 60 stages using a modern frac fleet from Liberty Energy, which was currently being mobilised from the United States to Australia.

It said the technology was expected to enhance the efficiency and performance of the fracking process, potentially leading to increased gas flows.

Initial flow test results from both wells were expected in the first quarter of 2025.

After testing, the wells would be suspended as future producers to support the planned Shenandoah South Pilot Project, which aimed to produce 40 million cubic feet per day starting in the first half of 2026, pending final approvals.

The two-well programme marked the largest single drilling campaign in the Beetaloo Sub-basin to date.

An additional four wells were planned for 2025 to complete the drilling for the Shenandoah South Pilot Project.

Falcon Australia would participate in the project with a 5% interest in both wells.

"The spudding of the SS2H horizontal well, which is the first of the planned two horizontal wells to be drilled in 2024, is an exciting next step in the development of the Beetaloo Sub-basin," said chief executive officer Philip O'Quigley.

"Following on from the success of the Shenandoah South 1H well announced earlier this year, and using the same drilling company, H&P, together with the arrival of the Liberty frac fleet, capable of materially increasing the stimulation intensity, we are really excited about being able to demonstrate the deliverability of the Amungee Member B-shale over 3,000 metre horizonal sections."

At 0957 BST, shares in Falcon Oil & Gas were up 3.47% at 5.43p.

Reporting by Josh White for Sharecast.com.