Falcon Oil JV plans stimulation work at 2025 well

Executive Summary

• Falcon Oil & Gas reports that the first two wells of its 2025 Beetaloo drilling campaign are drilled and cased with 3,000 m (10,000 ft) horizontal sections; a third well is now being rigged up for production drilling.
• Up to a 60‑stage hydraulic stimulation is planned on one of the 2025 wells, with a 30‑day flow test slated for early 2026 ahead of gas sales expected to start mid‑2026.
• The company confirms no cost exposure for the $140 M Sturt Plateau compression facility and the $70 M Beetaloo pipeline being built by APA Group, and it has reduced its interest in the three 2025 wells to 0 % with no financial liability.

Key Details

• Drilling Campaign Progress – Two of three planned 2025 wells are completed (drilled & cased) with 3,000‑m horizontal sections; rig mobilization for the third well is underway.
• Stimulation Plan – Up to 60 hydraulic fracturing stages will be applied across the full 3,000‑m horizontal section of one 2025 well; flow‑tested for 30 days in early 2026 before shut‑in.
• Gas‑Sales Timeline – Anticipated commencement of gas sales in mid‑2026 after successful flow testing and regulatory approvals.
• Q2 2026 Activities – After the wet season, three additional wells (including the second 2024 well) are slated for stimulation ahead of gas sales.
• Production Commitment – All Shenandoah South pilot project wells are expected to deliver the contracted 40 MMcf/d volume required under the Gas Sales Agreement with the Northern Territory government, subject to weather and stakeholder approvals.
• Interest Reduction – Falcon Australia has reduced its participating interest in the three 2025 wells to 0 %, incurring no cost exposure.
• Native Title & Appraisal Gas – BJV partners have secured agreements with native title holders to avoid flaring and obtained consent to sell appraisal gas for three years; NT government approved sale under BUG legislation.
• Compression Facility (SPCF) – Construction of the $140 M Australian‑dollar Sturt Plateau Compression Facility began this month; earthworks and piling are complete, with Falcon bearing no construction cost.
• Beetaloo Pipeline – Work started on the NT’s first Beetalou pipeline; APA Group is investing $70 M (AUD) to build a 37‑km Sturt Plateau pipeline.
• CEO Comment – Philip O’Quigley highlighted successful execution of the drilling campaign and indicated forthcoming updates as operations intensify over the next months.

Notable Quotes

“It’s great to report our operating partner, Tamboran Resources, is executing the 2025 drilling campaign to plan… We look forward to providing further updates over what will be an extremely busy next few months.” – Philip O’Quigley, CEO, Falcon Oil & Gas Ltd.