Falcon Oil shares jump on encouraging data from Australia stimulation

(Alliance News) - Falcon Oil & Gas Ltd on Friday said it is "extremely encouraged" by the potential of its current stimulation programme in Australia due to "strong gas shows".

Falcon Oil shares surged 11% to 7.11 pence in London on Friday morning.

The Australia, Hungary and South Africa-focused oil and gas company said it had completed the Shenandoah S2-2H ST1 stimulation in the Beetaloo Sub-Basin in Northern Territory, Australia with its joint venture partner Tamboran Pty Ltd.

The company said it completed 35 stages across the 1,671 metre horizontal section. It achieved five stages of a 24 hour period on multiple days, the firm said.

It said the average proppant intensity was 2,706 pounds per foot with wellhead injection rates above 100 barrels per minute.

Falcon said the well will be completed before clean out activities and the start of flow back and extended production testing.

Chief Executive Officer Philip O'Quigley said: "We are extremely encouraged about the potential of the current stimulation program based on strong gas shows and other data observed whilst drilling. In addition, the experienced US operator, Liberty Energy, have shown the efficiencies they can achieve which will provide us with the greatest opportunity for the best possible outcomes from this stimulation program. We look forward to updating the market on the IP30 flow test results as soon as they become available."

By Michael Hennessey, Alliance News reporter

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