George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
From RNS JAN 25 th
Planned Stage 3 Work Programme – Beetaloo Sub-Basin
25 January 2022 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to provide details of the Stage 3 work programme in the Beetaloo Sub-Basin, Northern Territory, Australia with its joint venture partner, Origin Energy B2 Pty Ltd., a wholly owned subsidiary of Origin Energy Limited (“Origin”).
2022 will see Falcon and Origin progressing to the Stage 3 work programme of the restated Farm-Out Agreement. , which will include the drilling, fracture stimulation and extended production test of two horizontal wells.
Shares in Falcon Oil & Gas Ltd (AIM:FOG, TSX-V:FO) have flared up after raising funds from an existing shareholder.
The company is raising US$10mln through a private placing with Sheffield Holdings LP, which will see the latter's stake in Falcon rise to 8.66%.
Falcon has also agreed to grant Sheffield a 2% royalty interest over its 22.5% working interest in the Beetaloo Sub-Basin exploration permits in Australia in return for a cash payment of US$6mln. l.
The US$10mln will be added to Falcon's current cash balance of US$8.4mln, strengthening its financial position ahead of future decisions on the Beetaloo project.
Falcon chief executive Philip O’Quigley said: “Falcon is very pleased that Bryan Sheffield of Sheffield Holdings LP has increased his strategic stake in the company at this time. Bryan is a highly successful investor and has made significant returns in the US unconventional energy sector in the past."
Bryan Sheffield said: "The Beetaloo Sub-Basin is still in the exploration and appraisal phase, but with continued good well results, Falcon is well positioned to become a key supplier of low carbon energy to Australia and to the world within a few short years.’’
Falcon shares are up 14.14% at 11.3p.
Falcon Oil & Gas Ltd. - Investor Presentation
FALCON OIL & GAS LTD.
Released 07:00:00 04 February 2022
Falcon Oil & Gas Ltd.
(“Falcon”)
Investor Presentation
4 February 2022 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that Philip O’Quigley, Falcon’s CEO, will provide a live presentation relating to Falcon’s Stage 3 Beetaloo work programme in the Beetaloo Sub-Basin, Northern Territory, Australia and a discussion on the latest developments in the Beetaloo via the Investor Meet Company platform on 7 February 2022 at 4:00pm GMT.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Falcon Oil & Gas Ltd. via:
https://www.investormeetcompany.com/falcon-oil-gas-ltd/register-investor
Investors who already follow FALCON OIL & GAS LTD. on the Investor Meet Company platform will automatically be invited.
Ends.
CONTACT DETAILS:
Details have yet to be pinned down, though a new initiative from the Australian government promises to accelerate drilling activity in the Beetaloo sub-basin where Falcon and partner Origin Energy have some 4.6mln acres worth of permits.
A grant programme proposes to cover 25% of eligible exploration costs, capped at A$7.5mln per well and a maximum of three wells are eligible per venture.
Without giving precise details of potential plans, Falcon chief executive Philip O’Quigley said: “We look forward to continue working with our partners, Origin, and the state and federal governments and other stakeholders towards the successful development of the sub-basin.”
Where are we now re Davys valuation from 2019
See below from Davys
Davy View
This year’s drilling activity is structured to glean as much as possible from the various oil and gas targets identified in the Beetaloo Basin, Northern Australia. This will allow the most economically optimal play to be identified in the first instance and appraised in the 2020 programme. This makes sense for all concerned and is the best way to achieve value realisation for shareholders.
Logical and sensible approach
The exploration and appraisal activity undertaken in the Beetaloo indicates that there is not only a dry gas target but also the potential to develop wet gas targets and possibly even a tight oil/condensate play. The decision to appraise all these plays is the correct approach. The US industry continues to be the best guide for how other unconventional targets could evolve and demonstrates that the wetter (includes heavier gases) the target, the more valuable it is. It seems logical that this should also be the case in Australia.
Way forward for Beetaloo will be much clearer next year – the same applies to Falcon
The proposed drilling activity in 2019 followed by an intra field season of analysis and desk top studies is designed so that the 2020 season should confirm what looks to be the optimal economic route. If Origin Energy, the operator, determines an economic route for development, very material capital commitments will follow. This means the choice facing Falcon at that point will be to stay the course or optimally manage an exit from the play. In the short term, Falcon is funded through a farm-out agreement with Origin to participate in the appraisal programme. However, this does not cover central costs or non-field expenditures.
Valuation implications
Clearly, it is not possible to pre-determine the outcome of the next two years’ work; however, if the US Marcellus basin is the type model, there is a very good chance of establishing a wet gas play. By contrast, oil/condensate – albeit very fungible and high value add – is a less likely outcome. We see the dry gas play as a baseline for Falcon and value this at 42p per share. After this, a separate wet gas play would be a very good outcome as the increased calorific value results in a higher price and enables sales to both dry gas and natural gas liquid markets. At this stage, we value this on a significantly risked basis at 8.4p per share. The balance of the valuation for the tight oil option, South Africa, central charges and cash amounts to 1.0p. As we view the various plays as independent, we can combine the outcomes – bringing our group valuation to 52p per share.
Operationally, the focus is on the upcoming work programmes in the Beetaloo basin, in Australia’s Northern Territory.
The exploration and appraisal programme will include the drilling and hydraulic fracture stimulation of two horizontal wells.
In October, the Kyalla 117 N2-1 was spudded - It is the first well in the ‘Stage 2’ drill programme at Beetaloo.
The well is located some 32 kilometres from the prior Beetaloo W-1 well and it is targeting the shale liquids-rich gas play.
First, a vertical pilot well is being drilled down to around 1,750 metres into the Kyalla formation.
A horizontal section of around 1,000 metres will then be drilled. The horizontal well will be completed and will undergo a production test.
The Beetaloo shale project, 30% owned by Falcon, is estimated to host some 85 trillion cubic feet of technically recoverable gas resources.
Karoo, Mako
In South Africa, Falcon expects the exploration right over the acreage in the Karoo Basin will be awarded this year
This licence is about 173 million acres and contains thick, organic-rich shales such as the Permian Whitehill formation.
Falcon is continuing to review its operations in Hungary, which includes the Makó Trough.
What the boss says: Philip O'Quigley
“The spudding of the Kyalla 117 N2-1 appraisal well is an exciting development for Falcon and marks the re-commencement of the drilling programme with our JV partner,”
Inflexion points
Drilling starts at Beetaloo
Results from two wells on the licence
Exploration licences granted for Karoo Basin acreage
Newsflow starts in June and carries through until November
Stage 3 will involve testing prospect that can be commercialised the quickest
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FALCON OIL & GAS LTD.
(“Falcon”)
Kyalla 117 N2 Horizontal Appraisal Well EMP Approved
22 August 2019 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, Euronext Growth: FAC) is pleased to announce that the Environmental Management Plan (“EMP”) for the Kyalla 117 N2 horizontal appraisal well, for the planned 2019 drilling, stimulation, and well testing prepared by Origin Energy B2 Pty Ltd. (“Origin”) on behalf of the JV, has been approved by the Northern Territory Department of Environment and Natural Resources.
Kyalla 117 N2 Horizontal Appraisal Well
•The well is targeting the Kyalla shale liquids rich gas fairway
•Construction of the well pad and related civil works is nearing completion
•Drilling operations will commence in September
Philip O’Quigley, CEO of Falcon, commented:
“Today’s announcement relating to the approval of the Kyalla 117 N2 Well EMP targeting the Kyalla shale liquids rich gas fairway is an exciting development for Falcon shareholders. We look forward to the commencement of drilling operations.”
For further information, please contact:
CONTACT DETAILS:
Falcon Oil & Gas Ltd. +353 1 676 8702
Philip O'Quigley, CEO +353 87 814 7042
Schlemiel
Thanks to you and others for your informative posts
The knowledge of some of you guys is bewildering ( Wet water, Dprussky Vegas girl, newtofo, Nanaodancy, It Guy, and even Bigones although controversial sometimes.)
What in your opinion would a decent take out price be
Falcon Oil & Gas Falcon has announced that its Environmental Management Plan (EMP) for the Kyalla 117 N2 exploration well has been accepted by the Northern Territories Department of Environment and Natural Resources. CEO Philip O’Quigley commented that it was ‘an exciting development as the JV prepares to re-commence drilling in the Beetaloo sub-basin in 2019’. Whilst this is a modest item I mention it as there are many readers who are followers of FOG and for whom news has been hard to find for a while and it is indeed encouraging that this exciting and potentially highly profitable venture is now moving forward.
Prior to the lifting in early 2018 of a drilling moratorium, we valued the Beetaloo dry gas play at 31p per share. However, this was after a 50% risking for the drilling ban. This risk is now unwound, as the re-start of activity demonstrates, so the dry gas play has a potential value of 60p per share. This does not take into account either of the wet gas plays. Detailed analysis at this early stage can at best be indicative and clearly substantial unknowns remain, but the main takeaway for us is that upside is significant relative to current market valuations
Rig contract signals start of 2019 Beetaloo drilling campaign
January 21 2019 | Job Langbroek | 5 page(s) | Print or Download PDF
Davy View
Following a protracted delay due to a drilling moratorium, the rig selection confirms that the Beetaloo project is underway once again. Drilling this year will enable a commercial decision to be made as to which of the three targets identified in the Beetaloo will be pursued into stage 3. This will enable a full assessment of the plays and maximise the basin’s commercial potential. Shareholders will welcome the return to drilling activity, and the news is positive for the share price.
Drilling starts in June
Origin Energy has signed off on a drilling contract that will complete the stage 2 drilling campaign and also give it an option to extend the contract into 2020. The purpose of stage two is to evaluate the two liquid rich gas fairways of the Kyalla and Velkerri plays. This will include the drilling and hydraulic fracturing of two horizontal wells. The programme is designed such that the Velkerri B dry gas play discovered in 2016 will also be examined. At the end of this campaign, all three targets will be assessed commercially with the most attractive selected for stage 3 drilling in 2020. Falcon has a 30% share of the project and will be carried up to a gross spend of A$65m. Some early work is already underway, and drilling of the first of the wells starts in June.
Project re-start is positive
The re-start of the drilling campaign is positive given that no real commercial progress could be made until the extent and type of resource are better understood and mapped out. Early indications are that the Beetaloo’s physical characteristics match those found in established and commercially exploited US shale plays. Prior to the lifting in early 2018 of a drilling moratorium, we valued the Beetaloo dry gas play at 31p per share. However, this was after a 50% risking for the drilling ban. This risk is now unwound, as the re-start of activity demonstrates, so the dry gas play has a potential value of 60p per share. This does not take into account either of the wet gas plays. Detailed analysis at this early stage can at best be indicative and clearly substantial unknowns remain, but the main takeaway for us is that upside is significant relative to current market valuations