Falcon Oil & Gas shares rise as reaches highest IP30 result to date

(Alliance News) - Falcon Oil & Gas Ltd on Monday reported the Shenandoah S2-2H ST1 well has reached an average 30-day initial production flow rate of 7.2 million cubic feet per day over 5,483 feet.

Shares in Falcon Oil & Gas were up 41% at 9.30 pence each in London on Monday morning.

The Australia, Hungary and South Africa-focused oil and gas company said the flow rate was across a 35 stage stimulated length within the Amungee Member B-Shale in the Beetaloo Sub-basin, Northern Territory, Australia.

This makes it "the highest IP30 result in the Beetaloo to date", Falcon said.

The company added that the normalised flow rate of 13.2 MMcf/d over an extrapolated 10,000-foot horizontal section was in line with the 12-month average of over 11,000 wells in the Marcellus Shale area.

"The IP30 flow rate results announced today of 7.2 MMcf/d, are truly stellar and marks another major data point in the Beetaloo Sub-basin again demonstrating that it compares to the best shale wells in the United States," said Falcon Chief Executive Officer Philip O’Quigley.

"Not only did the results exceed Falcon's pre-drill commercial threshold of a normalised flow rate of 3 MMcf/d per 1,000 metres but had similar flow rates and pressures to SS-1H and SS-2H ST1, which all point towards the significant resource potential of the Beetaloo.

"Falcon looks forward to the planned completion and testing of SS-4H by the end of 2025 and also to observing the results from the next three wells of the Shenandoah South drilling program and the additional milestones they will establish."

The drilling campaign is planned to begin in July, and targets up to three 10,000-feet horizontal wells. Once completed, the five wells on the SS2 pad will be tied up into the Sturt Plateau Compression Facility to feed into a 40 MMcf/d take-or-pay gas sales deal with the Northern Territory government.

Production remains on track to begin in mid-2026, and the remaining wells drilled in the 2025 campaign are expected to be completed during the first half of 2026.

By Emily Parsons, Alliance News reporter

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