RE: Malcy20 Aug 2018 15:42
Here is Malcy with his comments
https://www.malcysblog.com/2018/08/oil-price-premier-eco-atlantic-falcon-infrastrata-and-finally/
Following their announcement last week I took the opportunity to have a chat with Philip O’Quigley, CEO about the company’s forward programme in the Beetaloo Basin following the renegotiation of the farm-in deal with Origin. The new deal is equally advantageous to both companies as it moves swiftly to phase two of the drilling programme with $15m added to the cap on costs.
The second phase of the 2019 drilling campaign is aimed at both the Kyalla shale and hybrid liquids rich gas play and the Velkerri shale liquids rich gas play where horizontal drilling should be able to identify the preferred target for the 2020 programme. At this stage, carried by another $48m, there would be a two well programme aimed at the best of the now assessed of the three targets and these would be longer (3,000m) horizontals with multi-stage fraccing processes. The advantage of the Kyalla is that it is much shallower and may be a stacked play above the Velkerri and give greater opportunities.
Falcon has, with the ending of phase 1 at this stage, saved many months of time by instead of re-drilling the original Velkerri taking a look at the other prospects. This means that the company, carried for 2019 and 2020 is likely to have a highly prospective significant resource in a country that is, ironically short of domestic gas. Although this is a long term play I was surprised that the shares havent improved markedly since the moratorium was lifted although I do understand that the market is rarely able to take a longer term view. For those looking to lock away shares Falcon offer a potentially massive upside, possible a ‘ten bagger’ although I know that most will try and fine tune their timing of entry.
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