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Falcon Oil & Gas says it officially has a new gas discovery at Beetaloo project

Published: 19:05 19 Jan 2021 AEDT

Falcon Oil & Gas Ltd - Falcon Oil & Gas officially has a new gas discovery at Beetaloo project

Falcon Oil & Gas Ltd (LON:FOG) (CVE:FO) confirmed it has a new gas discovery on its hands, as partner and Beetaloo project operator Origin Energy submits a formal notification to the Australian authorities.

The regulatory confirmation comes amidst further positive findings from the Kyalla 117 well, part of the Beetaloo shale project in Australia’s Northern Territory.

Falcon noted that the Kyalla 117 well had flowed gas unassisted for a period of seventeen hours, following the introduction of nitrogen to lift fluids.

Rates of between 0.4mln and 0.6mln cubic feet per day were measured over the period – whilst the flowback of hydraulic fracture stimulation water continued at 400-600 barrels per day.

Initial results indicate that the well has tapped a liquid-rich gas composition.

An extended production test is slated to follow, as fracture water volumes recede.

The company said it expects a more detailed evaluation of the well will come in the second quarter of 2021.

“We look forward to our operator, Origin, putting in place longer term measures to flow back sufficient hydraulic fracture stimulation water to allow the well to flow continually without assistance and enable production testing to occur in the coming months during the dry season,” said Philip O’Quigley, Falcon chief executive in a statement.

“In addition to this we welcome the news from the Australian Government to invest a further A$217m in the Northern Territory in infrastructure to support gas development and other industries in and around the Beetaloo Sub-basin.”

He added: “We will update the market when production testing has concluded, and a detailed evaluation has been undertaken.”

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