Shares in Falcon Oil & Gas Ltd (AIM:FOG, TSX-V:FO) jumped as much as 23% on Monday after the company announced record-breaking gas well results from its Beetaloo Sub-basin project in Australia.
The SS-2H ST1 well achieved a 30-day initial production rate of 7.2 million cubic feet per day, the highest ever recorded in the Beetaloo.
The result strengthens Falcon's development case as it advances a five-well programme linked to a 40 MMcf/d gas sales agreement.
The IP30 rate was achieved over a 1,671-metre lateral section, placing it in line with leading US shale benchmarks such as the Marcellus.
Chief executive Philip O’Quigley described the result as "truly stellar" and said it added a significant datapoint to understanding the Beetaloo’s potential.
Falcon, partnered with Tamboran Resources, is focused on unconventional gas exploration and development in Australia’s Northern Territory.
The company expects further drilling updates as it works towards full-scale commercial production.
The shares rose 1.85p to 8.45p. Broker Cavendish reckons the stock is worth 32p.