Falcon Oil & Gas Ltd (AIM:FOG, TSX-V:FO) shares climbed in Monday’s early deals after reporting a successful result in its Shenandoah South 2H Sidetrack well.
The well, part of Falcon’s Beetaloo Basin project, gave one of the play’s best results to date. It showed an average flow rate of 6.7 million cubic feet per day over 90 days.
It was a test of some 1,671 metres in a horizontal well in the Amungee Member B-Shale, and, helps indicate what could be possible if similar horizontal wells can be extrapolated over a larger area (like what is seen in the large-scale North American shale plays).
“The results we are seeing from the wells drilled and flow tested to date in the Shenandoah area of the Beetaloo illustrate the huge commercial potential of this area and augur extremely well for the pilot program and any subsequent larger-scale development,” said Falcon chief executive Philip O’Quigley.
The well is now suspended ahead of planned gas sales to the Northern Territory Government in mid-2026, subject to weather and approvals.
Meanwhile, Falcon updated on its 2025 drill campaign, comprising the intermediate sections of three wells, with 10,000-foot horizontal drilling to come next. It is part of a five-well pilot programme.
The small-cap has no cost exposure to three of the wells, thanks to previously struck farm-out transactions.