(Alliance News) - Falcon Oil & Gas Ltd on Friday said drilling operations at the Amungee NW-2H well in Australia have completed, with a high concentration of methane observed.
The Dublin-based oil and gas company focused on Australia, South Africa and Hungary, said the drilling was completed with Falcon Oil & Gas Australia Ltd's joint venture partner Tamboran Pty Ltd, an Australian natural gas company.
The well was drilled to a depth of 3,883 metres, including a 1,275-metre horizontal section within the Amungee Member B Shale in the Beetaloo Sub-Basin.
The Amungee NW-2H well intersected the Amungee Member B Shale at 2,413 metres vertical depth, and preliminary drilling data confirms elevated gas shows with a high concentration of methane observed, Falcon said.
The cost of drilling was AUD14.1 million, which is around GBP8.1 million, and this excludes casing and cementing. Falcon said this is slightly ahead of the budget, although the budget was not specified.
Operations are expected to resume in the first three months of 2023, and up to 24 stimulation stages are planned within the Amungee Member B Shale, although this is subject to weather conditions.
Falcon said stimulation and flow testing of the Amungee NW-2H well over the 1,275-metre horizontal section will enhance the joint venture’s understanding of the potential commerciality of the Amungee Member B Shale.
The company added it is taking a review of all data before deciding on the location of the final well under the stage 3 work programme, which is targeted to be drilled in 2023.
"We are delighted that the joint venture's new operator, Tamboran Resources Ltd, has successfully drilled and cased the Amungee NW-2H well and look forward to the next phase of operations with the fracture stimulation in the new year and obtaining productions rates that would support the joint venture moving to a multi-well pilot development programme in 2023 and 2024," Chief Executive Philip O’Quigley said.
Falcon Oil & Gas shares were up 2.5% to 8.10 pence on Friday morning in London.
By Jaskeet Briah, Alliance News reporter
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