Falcon Oil & Gas Ltd. - Beetaloo Sub-basin - Completion of the SS2-1H well stimulation program

Executive Summary

• Falcon Oil & Gas Australia Ltd., together with joint‑venture partner Tamboran (B2) Pty Ltd., completed the stimulation program on the SS2‑1H horizontal well in the Shenandoah South Pilot Project.
• The program delivered 58 stages over a ~3,050 m lateral with an average proppant intensity of 2,206 lb/ft; 86 % of the lateral is expected to flow unimpeded after a 30‑day soak and subsequent 30‑day flow test.
• Initial production (IP30) is anticipated in Q1 2026, with three additional wells slated for stimulation in H1 2026 ahead of gas sales targeting the contracted 40 MMcf/d volume under the Northern Territory Gas Sales Agreement.

Key Details

• Stimulation Scope: 58 stages across ~3,050 m (10,009 ft) horizontal section in the Amungee Member B Shale.
• Proppant Placement: Average intensity of 2,206 lb/ft; average sand per stage ≈ 381 k lb.
• Stage Spacing: Optimized from ~50 m to ~60 m (164–196 ft), reducing total stages and expected cost for future programs.
• Injection Rates: Wellhead rates consistently >100 bbl/min throughout the program.
• Equipment Used: Liberty Energy stimulation equipment (40,000–80,000 HHP).
• Flow‑through Section: ~2,632 m (8,635 ft) – 86 % of lateral expected to contribute to unimpeded flow; remaining ~419 m (1,374 ft) may be impeded.
• Post‑completion Plan: Tubing completion → 30‑day soak → 30‑day flow test.
• Production Outlook: IP30 rates projected for Q1 2026; three wells (including the second well from the 2024 campaign) to be stimulated in H1 2026 before gas sales commence.
• Gas Sales Commitment: All pilot project wells expected to deliver the contracted 40 MMcf/d volume required under the Gas Sales Agreement with the Northern Territory Government, subject to weather and final stakeholder approvals.
• Equity Position: Falcon Australia reduced its participating interest in the three 2025‑drilled wells to 0%, incurring no cost exposure.
• Future Agreements: Definitive agreement between Falcon and Tamboran Resources Corp. expected to close in Q1 2026.

Notable Quotes

“This is another major milestone for the BJV partners with the stimulation of the first 3,050‑metre horizontal well… 2026 is going to be a very busy and exciting year in the Beetaloo.” – Philip O’Quigley, CEO, Falcon Oil & Gas Ltd.

“The definitive agreement entered into between Falcon and Tamboran Resources Corporation is progressing and is expected to close in the first quarter of 2026.” – Philip O’Quigley, CEO