(Sharecast News) - Falcon Oil & Gas has started drilling the Amungee NW-3H (A3H) horizontal well in exploration permit 98 in the Beetaloo Sub-basin, located in Australia's Northern Territory, it announced on Monday.
The AIM-traded company said the operation was in collaboration with its joint venture partner, Tamboran B2.
It said the A3H well represented the second venture of Falcon's two-well programme set for 2023.
The focus of the drilling would be the Amungee Member B-Shale, anticipated to be at 2,450 metres total vertical depth.
For context, the A3H well is situated on the identical well pad as its predecessor, the Amungee NW-2H, under exploration permit 98.
It is roughly 60 kilometres north of the recently drilled Shenandoah South 1H well (SS1H).
The firm said the drilling process for A3H was projected to span 25 days, with the operation including a horizontal section of 1,000 metres.
After drilling, Falcon said it had scheduled a stimulation programme to kick off in the second quarter of 2024, once the Northern Territory wet season ended.
Under the joint operating agreement, Falcon Oil said it would engage in the A3H drilling with a total participating interest of 22.5%.
The collaboration would result in a drilling spacing unit (DSU) spanning 20,480 acres.
"The spudding of the A3H horizontal well, just a week after drilling the SS1H well, is an exciting acceleration in the appraisal of the Beetaloo Sub-basin," said chief executive officer Philip O'Quigley.
"We are confident that learnings and results from the previous two Amungee wells drilled in EP 98, together with the drilling of the SS1H well, will have a positive impact on the outcome of the results from this A3H well.
"Preparations for the stimulation program of the SS1H well are ongoing, and we look forward to updating the market in due course as soon as those operations commence."
At 1100 BST, Falcon Oil & Gas shares were up 0.61% at 6.64p.
Reporting by Josh White for Sharecast.com.
Falcon Oil (FOG)