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(Alliance News) - Falcon Oil & Gas Ltd on Thursday said fracture stimulation of the Kyalla 117 well in Australia will start in the third or fourth quarter this year.
The oil and gas company focused on Hungary, Australia and South Africa said that extended production tests will follow and the initial results from the well are expected during the fourth quarter.
"These results will inform the decision to either further evaluate this liquids-rich gas play or commence activities in the Velkerri liquids-rich gas play," the company said.
In February this year, Kyalla 117 was drilled to a total measured depth of 3,809 meters, which included a 1,579 meter lateral section in the Lower Kyalla formation. Results obtained demonstrated good reservoir continuity, conductive natural fractures and continuous gas shows, the company said.
Chief Executive Philip O'Quigley said: "We look forward to the next phase of operations with the fracture stimulation of the Kyalla 117 well and will update the market as results become available."
Falcon Oil & Gas shares were down 2.6% at 7.50 pence each on Thursday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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