Falcon hails record Beetaloo gas flow, starts new drilling campaign

(Alliance News) - Falcon Oil & Gas Ltd on Monday said its latest flow test at the Beetaloo Sub-basin in Australia's Northern Territory delivered the highest initial 60-day production rate seen in the region to date, as it also kicked off a major new drilling campaign.

The oil and gas explorer said the Shenandoah S2-2H ST1 well achieved an average initial 60-day gas flow rate of 6.8 million cubic feet per day over a 1,671-metre horizontal well section.

When normalised over a 10,000-foot section, the rate equates to 12.4 MMcf per day, matching production rates from top-tier shale gas wells in the Marcellus Shale in the US.

Chief Executive Officer Philip O'Quigley said the result was "truly stellar" and significantly exceeded Falcon's pre-drill commercial threshold.

"These results...all point towards the significant resource potential of the Beetaloo," he said. "This marks another major data point...demonstrating that it compares to the best shale wells in the United States."

The well also showed a low decline rate, with a current exit rate of 6.4 MMcf per day and flowing pressure of 720 psi.

Falcon said it has now begun its 2025 drilling campaign, which will include up to three 10,000-foot horizontal wells drilled in succession as part of the Shenandoah South pilot programme. The company will not bear any cost exposure for the new wells, having previously elected to reduce its participation to zero for this phase.

Falcon holds a 23% interest in the broader Beetaloo joint venture and a 5.0% interest in the Shenandoah South pilot project. The remaining stakes are held by Tamboran (B2) Pty Ltd.

Falcon shares rose 6.2% to 7.01 pence in London on Monday morning.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Falcon Oil