Falcon Oil & Gas Ltd V.FO

report

[hikari]

Here is the Cavendish update:

A Defining Moment for the Beetaloo: The SS-1H well achieved IP30 and IP60 rates of 6.4MMscf/d and 6.0MMscf/d, respectively (normalised over 1,000m), significantly exceeding pre-drill expectations and the 3.0MMscf/d IP30 rate required to progress the sanctioning of the proposed 40MMscf/d Pilot Project at Shenandoah South. The SS-1H flow rate is the highest tested in the Beetaloo Basin to date, and combined with the geological data gathered, puts Shenandoah South on par with the most prolific shale gas basins in the US. The IP60 exit rate trajectory show a steady, low decline type-curve (c2.8MMscf/d) and downhole pressure implying a highly effective frack that is connected to a sizeable volume of gas. The SS-1H well is planned to be flow tested until IP90 to allow for an assessment of the well’s 20 year estimated ultimate recovery (EUR) with results expected in late April 2024. -

SS-1H Results on par with the Prolific US Shale Gas Basins: Results from the SS-1H well have confirmed the similarity between the Middle Velkerri B Shale and the Marcellus shale dry gas window – one of the world’s most prolific shale gas basins. Most importantly, the pore pressure gradient for SS-1H is consistent with the core Marcellus, highlighting the ability to extract gas from the shale formation. -

Advancing to a 40MMscf/d Pilot Project: Front End Engineering and Design (FEED) on the proposed 40MMscf/d Pilot Project continues, with FID expected in mid-2024. The Pilot Project is expected to consist of six, 10,000ft horizontal wells drilled from the same well pad 4km to the north of the SS1H well. Two wells will be drilled and fracked in 2024, with a further four wells in 2025. A gas processing plant will be connected via infield gas gathering lines to a 35km export pipeline, connected to the Amadeus Gas Pipeline. While first gas is targeted for H1/26, commerciality will be further proven by the end of 2024, once the initial two production wells are fracked and flow tested. -

Significant US Expertise and Capital: To date, >US$115m has been invested across the Beetaloo by Bryan Sheffield, the founder, and former CEO of Parsley Energy. H&P, a drilling industry leader has imported a 2,000HP rig into the Beetaloo, which is expected to support a material reduction in drilling times and costs. Operator, Tamboran also has a right of first refusal until 2033 on future drilling rigs. Tamboran has also signed a strategic partnership with Liberty energy to import a modern frac fleet to the Beetaloo in 2024 for a stimulation campaign with leading operational and subsurface engineering expertise, reducing delays mobilising equipment, increasing efficiencies, and reducing costs.

[Abedim15]

...all of which makes it difficult to accept that FO is trading at 0.13 and their most recent raise was at 6p. Not to mention that Tamboran is also only at 0.17 on the Aussi exchange. (Does anyone know when Tamboran starts to trade in the US)