Falcon Oil & Gas Ltd (AIM:FOG, TSX-V:FO) shares rose on Wednesday morning following news of the successful completion of a 25-stage stimulation programme at the Amungee NW-2H (A2H) well in the Beetaloo Sub-Basin, Northern Territory, Australia.
The company said the A2H well was drilled to a total depth of 3,883 metres (m), including a 1,275m horizontal section within the Amungee Member B Shale (formerly known as the Middle Velkerri B-shale) by Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B1) Pty Limited in December 2022, with stimulation commencing in February 2023.
Falcon noted that 25 stages were successfully stimulated across a 1,020m horizontal section within the Amungee Member B Shale, with approximately 2,125 pound per foot of proppant placed along the completed horizontal section. The proppant was placed using 5-½-inch casing and was based on modern US shale design - the design is anticipated to result in improved flow rates during the extended production test.
Stimulation fluid flow back will commence imminently, the company added, and it is estimated to take several weeks before the well is shut-in for installation of production tubing, with 30-day initial production (IP30) flow rates expected during the second quarter of 2023.
In a statement, Philip O’Quigley, Falcon’s CEO, commented: “We are delighted to announce the completion of stimulation operations at the A2H well with our joint venture operator, Tamboran Resources Limited. The programme was successfully executed during the Northern Territory wet season and we are now entering the very important phase of flow back operations, which have the potential to confirm production rates to support the joint venture moving to a multi-well pilot development programme in 2023/2024. We look forward to updating the market when these flow rates are available.”
In early trading, Falcon shares were up 0.6% at 8.35p.