Falcon's August Presentation30 Jul 2018 23:54
In reference to the just released Falcon Oil & Gas corporate presentation: Lots of information included – some old – some new. Of all the presentation, I found page 18 to be the most informative. When you look at that page, note that the ‘pink’ is the Velkerri shale that is the shale horizon that holds the huge 6.6Tcf contingent reserve discovery. That discover technically covered approximately 12% of the areal extent of the concession. Note that the seismic and test wells lead Falcon to believe that this same Velkerri shale covers about 95% of the total 4.6 million acres – that could lead to huge vast reserves. Likewise note the ‘orange’ on this map – it represents the condensate rich, wet gas Velkerri shale play. This portion of the Velkerri should be much more valuable than the previous Velkerri ‘B’ as the wet gas will demand a much higher price. Of course talking the Velkerri – don’t forget about the Velkerri’s twin and yet to be tested ‘C’ shale.
Following the Velkerri pink/orange then look at the green portion of the map – I would guess that to be about a fourth of the 4.6 million acres. That potential acreage is best guess for the Kyalla shale formation. The Kyalla shale has the potential to be far more valuable than the Velkerri orange as it looks to contain even more condensate along with being a much shallower formation. This Kyalla formation could be the possible overall ‘primary’ target of the Beetaloo – overshadowing even the already proven and prolific Velkerri shale. In the area of the green, the Velkerri runs underneath so these two zones could very possibly be considered ‘stacked’ plays with completions in each zone.
Last but not least, there is the Hayfield Sandstone shown as the grey hatched area. Not as much is know about the Hayfield but the core samples and drill stem test showed that the Hayfield might potentially be a good oil/condensate play. At some point it will likely be further tested. If the Hayfield lives up to its potential then the its acreage could represent about 12% of the Beetaloo’s aerial extent – that could be exciting as it could become a rich condensate/oil play.
All in all this map shows the vast potential held in the Beetaloo. The next two years will attempt to prove up the best potential in these shale formations. It should be an exciting 2 years once drilling re-commences this next April. In the meantime be patient and hold tight – the true value of our Falcon stock will be based on the asset sell price of its 30% ownership in this resource rich concession – Falcon’s value has no correlation with today’s share price of the stock.
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