(Sharecast News) - Falcon Oil has completed a ten-stage stimulation programme on a 500-metre horizontal section of the Amungee Member B-Shale within the Shenandoah South 1H (SS1H) well, it announced on Thursday, located in the EP117 licence.
The AIM-traded firm carried out the operation in collaboration with its joint venture partner Tamboran B2.
It said the programme achieved a proppant intensity of 2,212 pounds per foot, with an average proppant injection of 356,000 pounds per stage.
Notably, it marked the first use of slickwater in the Amungee Member B-Shale, achieving rates of 100 barrels per minute (bpm).
Falcon said the results aligned with contemporary US shale basin stimulation practices.
Following the successful stimulation programme, Tamboran would install production tubing in preparation for the start of the flowback of stimulation fluid at the SS1H well.
The initial production (IP30) testing was scheduled to begin in mid-December, contingent on the timing of the gas breakthrough.
Falcon said the release of IP30 flow rates was expected in the first quarter of 2024, pending the timing of flowback stimulation fluid and weather conditions.
Falcon Oil estimated proof of commercial flow rates to be around 1.5 million cubic feet per day over the 500-metre horizontal section, or three million cubic feet per day when normalised over 1,000 metres.
Achieving such rates would pave the way for sanctioning the proposed 40 million cubic feet per day pilot project at Shenandoah South during the first half of 2024.
"The stimulation programme went extremely well with Tamboran's operations team achieving injection rates up to 100 bpm, a Beetaloo Sub-Basin rate record, and average proppant injection per stage of 356,000 pounds, in line with the initial design," said chief executive officer Philip O'Quigley.
"We look forward to this next phase of operations in the Beetaloo with the installation of production tubing ahead of the flow back of stimulation fluid and the commencement of the IP30.
"We will continue to update the market as results become available."
At 1232 GMT, Falcon Oil & Gas shares were up 10.15% at 7.49p.
Reporting by Josh White for Sharecast.com.
Falcon Oil (FOG)