Falcon Oil Share News (FOG)

(Sharecast News) - Falcon Oil & Gas announced plans for its 2021 work programme in the Beetaloo sub-basin of Australia's Northern Territory on Friday, which would include the resumption of clean-up operations and the start of an extended production test at Kyalla 117.
The AIM-traded firm said the programme, being undertaken with its joining venture partner Origin Energy B2, would also drill the Velkerri 76 vertical well, and perform a production test at Amungee NW 1H.

At Kyalla 117, Falcon had previously said that a notification of discovery and initial report on discovery was submitted to the Northern Territory government in January.

Unassisted gas flow rates between 0.4 million and 0.6 million standard cubic feet per day were recorded over 17 hours, which Falcon said were preliminary indications of well performance, with an extended test now required to determine the well's long-term performance.

It said that the 2021 work programme would see reservoir clean-up operations using an artificial lift technique resumed, and if that was successful, it would progress to an extended performance test.

At Velkerri 76, Falcon said the joint venture was targeting the Velkerri play along the south-eastern flank of the Beetaloo sub-basin, which was predicted to be in a liquids-rich gas window.

It said the work programme there would see a vertical pilot well drilled, to acquire core and log, and run diagnostic fracture injection test data across the Velkerri.

Finally, at Amungee NW 1H, the company had previously said that following a 57-day extended production test of the well, production averaged 1.1 million standard cubic feet per day.

Origin previously submitted the results of evaluation of the discovery and the preliminary estimate of petroleum in place for the Amungee NW-1H Velkerri B shale gas pool to the Northern Territory government, amounting to a gross contingent resource of 6.6 trillion cubic feet, with 1.46 trillion cubic feet net to Falcon.

In 2021, it said it would carry out a production test to determine if all frack stages contributed to the initial extended production test, which was conducted in 2016.

"This year's programme covering three different plays in the Beetaloo will provide key information that will help determine the future appraisal and development programme," said chief executive officer Philip O'Quigley.

"The prospect of multiple positive results is exciting, and we look forward to providing these results as soon as they become available.

"Falcon is fully carried for the 2021 work programme costs."

At 0921 GMT, shares in Falcon Oil & Gas were down 0.75% at 6.6p.