The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Regulatory Reform of Petroleum Activities
https://www.vision6.com.au/v/48542/1057516/email.html?k=1fUpYHGfV-JvjvKr7mOfN0Eoo9t8xAwXPg25tNheZWI
My concern is that if drilling doesn't commence until June/July and the rainy season in the NT begins in November that is very little time to get results, unless of course, once the rig is in place drilling will be year round? Thoughts?
Interesting read on Falcon regarding South Africa in the Irish Times today. SA worried about corruption is ironic since it is one of the most corrupt countries in the world.
https://www.irishtimes.com/business/energy-and-resources/dublin-based-firm-drawn-into-south-african-corruption-scandal-1.3776344
Did I read this correctly? This article states Origin has started drilling in one of the NT key gas fields.
https://www.northweststar.com.au/story/5867574/falcon-and-origin-to-begin-gas-drilling-in-nts-beetaloo-basin/
Falcon Oil & Gas Ltd has annnounced that Origin Energy has begun drilling in one of Northern Territory’s key gas fields, with potential implications for the Northern Gas Pipeline and the Mount Isa economy.
Falcon and Origin are joint venture partner and operator of the Beetaloo project, 600 kilometres south of Darwin and Origin has now signed a rig contract with Ensign Australia Pty Ltd. for Rig 963 for the 2019 Stage 2 Beetaloo drilling program, with an option to extend the contract into 2020.
The JV is evaluating the potential of the liquids-rich gas fairways in what are called the Kyalla and Velkerri plays in the Beetaloo Basin though the project remains subject to relevant approvals, and implementation of the exploration recommendations of the Inquiry into Hydraulic Fracture Stimulation in the Northern Territory.
Exploration and appraisal activities include the drilling and hydraulic fracture stimulation of two horizontal wells.
Falcon said that together with a third dry gas play known as Velkerri B discovered in 2016, this allows for the assessment of three plays, enabling the most commercially prospective play to be targeted for Stage 3 drilling during 2020.
“Work has already commenced at some well sites, including water bore drilling and water monitoring, with drilling targeted to commence in June 2019,” Falcon told the ASX.
NGI-Natural Gas Intelligence - www.naturalgasintel.com
Just posted an article on Falcon/Origin Nice to see U.S. and Canadian press picking up news on Falcon. Nothing new to be found in the article but very positive. Any press is good press at this point. Outline would not open the article but you can find it on the home page of NGI . It is titled With Fracturing OK’d, Onshore Natural Gas Eyed in Australia’s Beetaloo Basin
schlemiel-WW posted valuation info on the board after he attended the AGM Oct.20 18........His post is below....not certain if WW opinion has since changed.
Not discussed other than to say the further we get into the drilling programs the higher the expected price. I will say that everyone needs to be realistic on expectations. 9 wells on a 4.6 million acre project has its limitations on value. Personally I am expecting $2-$3 /share at sale if things go through 2020 drilling program. I know some expect much more but when you consider how many billions of dollars it will take to make a dent in the Beetaloo wells/infrastructure we can’t expect too much on our 9 well carry. Of course just my opinion. I would gladly be proven wrong. I know that POQ is wanting to be in a position to look the buyers in the eye when it comes time to sell - he is not interested in having any third party negotiate any sale - he will demand the best price out there. His negotiations after Hess s hows he is a good poker player IMO.
https://www.vision6.com.au/v/48542/1053843/email.html?k=tcNW83evt62qxxqB68OV6CinT0JmvqW50SwMxAyaY4c
dprussky & ITguy
I follow solyomtwo on Agoracom as well. He seems to be under the impression our bird is worth a minimum of $4, possibly as high as $10. I hope he is correct, as I have continued to buy Falcon for the last 2 years increasing my position to 225k shares. I appreciate the great commentary on this board & try to read it everyday. 2019 will be our big money year with FOLGF. Don't give up the faith !!
Just noticed that both Origin and Falcon's Annual Shareholder Meetings are being held 1 day apart. Hopefully, we'll get some good news from both companies on timelines for drilling. Found an interesting article to share. Not certain if it was previously posted.
https://www.afr.com/business/energy/gas/origin-energy-faces-agm-questions-over-nt-gas-drilling-20180914-h15dw4
Hello WetWater....Here is the unlocked article....looks like newtofo.....just posted before me....lol....
Duo eye NT shale pursuit
Global Mediator
23 Aug 2018 22:00 GMT
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Australian operators Origin Energy and Santos are ramping up their pursuit of shale gas and oil plays in the Northern Territory following the recent lifting of a moratorium on hydraulic fracturing, writes Russell Searancke.
Both companies plan to drill multiple wells in the Greater Beetaloo basin once the regulatory approvals come through and hope to resume drilling in the 2019 dry season.
The territory government lifted the ban following an independent scientific inquiry, but a host of recommendations need to be implemented before activities can resume.
Origin said in its latest guidance that it is working with the territory government, the Australian Petroleum Production & Exploration Association, and other operators "to provide input into the detail of recommendations before they are implemented and has held initial meetings to start access negotiation".
Origin said it wants to drill one vertical and two horizontal appraisal wells in the 2019 dry season in the Beetaloo basin where it is targeting liquids-rich shale plays.
Origin and joint venture partner Falcon Oil & Gas have already booked a contingent resource of 6.6 trillion cubic feet of gas relating to the Velkerri B shale dry gas play seen in wells such as Amungee.
The next round of wells will represent the second stage of work as the partners focus on the Kyalla shale liquids-rich gas play and the Velkerri shale liquids-rich gas play.
Falcon chief executive Philip O’Quigley said "significant technical work" had been carried out by Origin over the past 18 months.
"We are very excited about the upcoming drilling programme with the objective of appraising and assessing commerciality of the prospective plays,” said O’Quigley.
Santos, meanwhile, is also pursuing the Velkerri shale gas resource in the McArthur sub-basin.
Santos drilled the highly promising Tanumbirini-1 shale well in 2014, and has secured an enormous exploration footprint with three permits and applications for two.
The company aims to drill, stimulate and test two horizontal appraisal wells in the 2019 dry season, subject to regulatory approvals.
Chief executive Kevin Gallagher said recently the McArthur basin "has the potential to do for the Northern Territory and Australia what the shale gas revolution has done for America”.
Shale
News
Greater Beetaloo Northern Territory Australia
Oceania Asia & Oceania
Proactive Investors published another article on Falcon. A small paragraph is included on the Karoo. There is an expectation of drilling rights to be awarded in 2019.
http://www.proactiveinvestors.co.uk/companies/news/203453/falcon-oil-gas-in-strong-financial-position-to-advance-its-projects
http://www.upstreamonline.com/hardcopy/1548855/south-africa-runs-rule-over-karoo-shale-gas-exploration-responses?utm_medium=email&utm_source=free_article_access&utm_content=226292673
if the link doesn't work I'll post the article also....
South Africa’s government this week began evaluating comments from the public on controversial plans to open up the semi-arid Karoo region to shale gas exploration activities.
The country’s authorities have for years stalled on awarding exploration rights to Anglo-Dutch supermajor Shell, UK-listed junior Falcon Oil & Gas and Bundu Gas — a local subsidiary of Australia’s Challenger Energy — as they have got to grips with the implications of shale gas operations.
In a surprise move on 11 July, the Minister of Mineral Resources, Gwede Mantashe, published a notice in the Eastern Cape government gazette inviting anyone, whose rights “may be materially and adversely affected by his pending decision on applications for exploration rights”, 30 days to submit their comments.
Representations were submitted to the Petroleum Agency of South Africa, the upstream industry regulator.
Mantashe has said he wants to fast-track the issuance of exploration rights in 2019, having last October appealed against a high court judge’s ruling that the minister does not have the authority to promulgate regulations for petroleum exploration and production.
If the judge’s original decision stands then the Department of Environmental Affairs will have to draft the regulations, leading to further delays.
Clarity on this legal issue will be needed before exploration rights can be issued, as will final approval of the long-gestating Mineral & Petroleum Resource Development Amendment Bill.
Parliament returned from recess last week, with a final draft of the bill possibly being voted on before the end of this year.
Opponents of plans to open up the water-scarce Karoo to shale exploration continue to go on the offensive.
Janse Rabie, head of natural resources at farming lobby group Agri SA, said there are insufficient water resources in the Karoo to support hydraulic fracturing and questioned what plans exist to deal with contaminated water.
Treasure the Karoo Action Group’s chief executive Jonathan Deal said water use is a key threat to the region. “We are sitting in a drought and we cannot afford shale gas. We are completely against this expensive exercise. It will be much cheaper to import gas from other African states,” he argued.
However, there are supporters of shale gas operations in the Karoo including Noel Constable, the mayor of Beaufort West.
“Our studies have given us the assurance that (shale gas exploration and production) won’t negatively affect our underground water system. We accept that and support this,” said Constable.
This news was released this morning.
http://www.falconoilandgas.com/uploads/pdf/Holdings_in_Company.pdf
This update was just released by the NT Government, along with a timeline on implementation.
https://hydraulicfracturing.nt.gov.au/__data/assets/pdf_file/0007/497446/Proposed-timing-for-the-roll-out.pdf
https://hydraulicfracturing.nt.gov.au/
Either you believe in the company or you don't. I'm buying at this depressed price. Picked up a few more shares yesterday. Hopefully I won't look like an idiot long term but only time will tell for those of us choosing to weather the storm and hold. Falcon is not for the faint of heart rather the patient investor. Best of luck to us all !!
invest a maximum of 4 billion AUD and advance the plan to expand the pipeline. However, environmental groups and some indigenous groups condemn the Gunnar regime, not abandoning the view that unconventional gas development by flocking poses a threat to water sources and land resources. Related countries / regions: Australia Related industries: natural resources / electricity / gas / water / financial / insurance .
This is the translation of dpruskys article. The translation is far from perfect and is not without some typo and grammatical errors. Basically I copied and pasted the article into translate.google.com Google can translate anything. NT lifts the gas development ban, To easing the easing province easing Gunner, the chief minister of Australia and the North Territory (NT), has recently lifted the moratorium measures over more than a year and a half of unconventional gas development through flaking (hydraulic crushing). As a result, it is expected that a billion dollars will be invested in exploration and development of NT and will lead to mitigation of gas shortages in eastern provinces. The local newspaper reported on 18th. NT gas is attracting attention as a gas shortage solution on the eastern coast of Australia, and it is attracting attention as a gas shortage in Queensland and the East Coast from NT by infrastructure company Jemena, which is a subsidiary of the country's leading electricity transmission company ' Construction of gas pipeline with cost of A $ 800 million (approximately 66,640 million yen) was started. However, the Labor Party government, which was born in August 2016, was concerned that it would harm valuable water resources and land resources, stopped mining in September of that year, and the Moratorium on the development of unconventional gas by flaking I was taking measures. After that, the investigation committee established by the NT Government evaluated the danger of gas mining by flaking. The final report submitted in March based on the results of more than 500 opinions and more than 100 hearings is risk reduced when implementing 135 item proposals, Pointed out that it will be acceptable levels. The NT government accepted all the recommendations items of the investigation committee and decided to cancel the moratorium. ■ Exploration activities are possible from 19 years By releasing the moratorium, 51% of the area of ​​NT is expected to be able to explore from 2019 dry season. This includes the Beetaloo Basin, which is considered to have the largest non-conventional gas reserves in the country. However, development has many stringent conditions, and individuals and organizations are also given the right to oppose exploration activities and production. For the remaining 49% of the national parks, protected areas, urban areas, sightseeing spots, culturally valuable, the flocking is still prohibited. Prime Minister Turnbull welcomes the decision of the NT Government "Open doors of new opportunities and create jobs for thousands of people." ■ Each company resumes exploration activities Origin energy originator Origin Energy announced that he would like to resume exploration activities in the Vitaloul Basin at a feasible time. Oil giant Santos also plans to prepare to start exploration activities from the dry season of 19 years. Jemena plans to
I shared the news story below because it is causing the Anti Fracking Groups to be up in arms. They are considering it a payoff for lifting the moratorium. I am personally hopeful the NT will see it as a gesture of good will by the federal government. Maybe it will make for a faster implementation process of the inquiry panels recommendations. One can only hope, so that the share price will begin to reflect some good news.