Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd.
(“Falcon”)

Operational update – Beetaloo sub-basin

May 04, 2022 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to provide an operational update on the Stage 3 works program 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”).

As noted in Falcon’s press release issued on January 25, 2022, Falcon and Origin will transition to the Stage 3 Work Program of the Revised Farm-out Agreement this year. Following discussions with Origin, in order to maximize the impact of Stage 3 operations, the joint venture has agreed to modify the previously announced Stage 3 program, which will now include an exit location for a well.

Step 3 Foreseen Work program understand :

  • Acquisition of a 58 km line of high specification 2D seismic over the Amungee NW-1H well rental area;

  • Drilling of an approximately 1,000 meter horizontal well on the Amungee NW-1H platform, targeting the Amungee Member (formerly known as Middle Velkerri) B Shale;

  • Output location approx. 10 km from the Amungee NW-1H platform, drilling of a vertical pilot and a horizontal well of approximately 1,000 meters also targeting the Amungee Member B shale;

  • 15-step fracture stimulation on both horizontal wells;

  • Prolonged production tests between 90 and 180 days on each well;

  • As previously announced, there will also be:

    • follow-up of the analysis of the cores and logs of the very encouraging preliminary evaluation of the results of the Velkerri 76 2021 well; and

    • further evaluation of the results of the Kyalla 117 N2-1H well to better understand the issues encountered during testing in 2021.

Step 3 Drilling and 3D Program Goals:

Philip O’Quigley (Falcon CEO) commented:
“This is a hugely important time for the Beetaloo sub-basin and Falcon believes the amended work program which now includes an exit location will provide further valuable evidence and help accelerate the program towards a pilot program. multi-well in CY23/24.

The 2021 EPT and PLT at Amungee NW-1H provided a line of sight to achieve initial production rates in the range of 3+ MMscf/d per 1,000 meters of diversions from Amungee B Member Shale. With the large contiguous area position providing significant headroom, the stacked potential shale targets of the Amungee Member with multiple landing zones, and the proximity of the northern flank to integrate the future wet gas zone support a pathway to commercialization.

We will continue to update the market on this expanded and high-impact Phase 3 program over the coming months. »

Ends.

CONTACT DETAILS:

Falcon Oil & Gas Ltd.

+353 1 676 8702

Philip O’Quigley, CEO

+353 87 814 7042

Anne Flynn, Chief Financial Officer

+353 1 676 9162

Cenkos Securities plc (NOMAD & Broker)

Neil McDonald/Derrick Lee

+44 131 220 9771

This announcement has been reviewed by Dr. Gábor Bada, Technical Operations Manager of Falcon Oil & Gas Ltd. Dr. Bada received his geology degree from Eötvös L. University in Budapest, Hungary, and his doctorate from Vrije Universiteit Amsterdam, the Netherlands. He is a member of the AAPG.

About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio concentrated in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and based in Dublin, Ireland, with a technical team based in Budapest, Hungary.

Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil & Gas Ltd. Falcon Oil & Gas Australia Limited and a wholly owned subsidiary of Origin Energy Limited (ASX: ORG) (“Origin”) are joint venture partners in the Beetaloo project.

For more information on Falcon Oil & Gas Ltd., please visit www.falconoilandgas.com

About Origin
Origin is a leading Australian integrated energy company. Origin is a leading energy retailer with approximately 4.2 million customer accounts, has approximately 7,500 MW of owned and contracted power generation capacity and is also a major natural gas supplier. Origin is the upstream operator of Australia Pacific LNG, which supplies natural gas to domestic markets and exports LNG under long-term contracts.

www.originenergy.com.au

Glossary of terms

2D

two sizes

PE

Research permit

TPE

Extended production test

kilometers

kilometer

kilometers2

square kilometer

LNG

Liquefied natural gas

MMscf/d

Millions of standard cubic feet per day

PLT

Production logging tool

MW

Megawatt

TCF

trillion cubic feet

Notice Regarding Forward-Looking Statements
Certain information contained in this press release may constitute forward-looking information. All statements contained in this press release that are not statements of historical fact can be considered forward-looking information. Forward-looking information generally contains statements with words such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”. , “Estimate”, “Projects”, “Dependent”, “Potential”, “Planned”, “Forecast”, “Outlook”, “Budget”, “Hope”, “Suggest”, “Support”, “Planned”, “Potential or the negative of these terms or similar words suggesting future results. In particular, the forward-looking information contained in this press release includes, but is not limited to, information relating to normalized gas flow rates at the Amungee NW-1H well, the Stage 3 work program, comments made regarding the type, number, timing, stimulation, testing and objectives of wells to be drilled in the Australian Beetaloo sub-basin, the prospectivity of the Amungee Member/Middle Velkerri area and the prospect of commercialization of the program of exploration and pilot development in 2023 and the potential CY23/24 evaluation program. This information is based on current expectations which are subject to significant risks and uncertainties that are difficult to predict. The risks, assumptions and other factors that could affect actual results include risks associated with fluctuations in market prices for shale gas; risks associated with the exploration, development and production of shale gas reserves; general economic, market and business conditions; substantial capital requirements; the uncertainties inherent in estimating quantities of reserves and resources; the extent and cost of compliance with governmental laws and regulations and the effect of changes to such laws and regulations; the need to obtain regulatory approvals before development begins; environmental risks and hazards and the cost of compliance with environmental regulations; aboriginal claims; risks and hazards inherent in operations such as mechanical or piping failures, cratering and other hazardous conditions; potential cost overruns, well drilling is speculative, often involving significant costs that may exceed estimates and may not result in discoveries; changes in exchange rates; competition for capital, equipment, new leases, pipeline capacity and qualified personnel; the failure of the holder of licenses, leases and permits to meet the requirements thereof; changes in royalty regimes; the inability to accurately estimate abandonment and reclamation costs; inaccurate estimates and assumptions of management and their joint venture partners; effectiveness of internal controls; the potential lack of available drilling equipment; failure to obtain or retain key personnel; title defects; geopolitical risks; and risk of litigation.

Readers are cautioned that the foregoing list of important factors is not exhaustive and such factors and risks are difficult to predict. Actual results may differ materially from the results suggested in the forward-looking statements. Falcon undertakes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements, except if and until applicable securities laws to Falcon require it. Additional information identifying risks and uncertainties is contained in Falcon’s filings with the Canadian securities regulators, which documents are available at www.sedar.comincluding under “Risk Factors” in the AIF.

Ato advisey regarding oil and gas information

Any reference in this press release to initial production rates is helpful in confirming the presence of hydrocarbons; however, these rates are not indicative of the rates at which these wells will continue to produce and subsequently decline and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to rely on these rates to calculate Falcon’s overall production. These rates are based on field estimates and may be based on limited data available at this time.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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