Falcon Oil & Gas Ltd. - Stellar IP20 Flow Test Result in the Beetaloo

Executive Summary

• Falcon Oil & Gas announced that the Shenandoah SS2‑1H well achieved an average IP20 flow rate of 10.3 MMcf/d over a 20‑day test on a 2,632 m (8,635 ft) laterally stimulated section.
• Normalized to a 10,000‑ft horizontal length, the flow rate is 11.9 MMcf/d, comparable to performance of >11,000 Marcellus Shale wells with full production histories.
• The company plans to commence stimulation of three additional Shenandoah South wells (3H, 4H, 5H) in Q2 2026 and tie them into the Sturt Plateau Compression Facility for gas sales in Q3 2026.

Key Details

• Test Parameters – 57‑stage stimulation across a 57‑stage stimulated length; toe stage covered >3,030 m (9,943 ft) with 50–60 m (164–197 ft) spacing.
• Flow Results – Average IP20: 10.3 MMcf/d (actual), 11.9 MMcf/d (normalized to 10,000 ft).
• Peak Rate – 15.9 MMcf/d (actual), 18.4 MMcf/d (normalized).
• Exit Rate – 8.8 MMcf/d (actual), 10.2 MMcf/d (normalized).
• Cumulative Production – 205.6 MMcf over the 20‑day test period.
• Wellhead Pressure – Declined from 4,499 psi to ~580 psi during testing.
• Obstruction Note – An obstruction blocks flow from 8 stages and the toe (397.7 m), so effective contribution is from 49 stages across the lateral.
• Future Plans – Stimulation campaign for Shenandoah South 3H, 4H, 5H slated for Q2 2026; all three wells expected to be tied into SPCF and commence production in Q3 2026.
• Interest Adjustment – Falcon Australia reduced its participating interest in the three 2025‑drilled wells (including SS2‑1H) to 0%, incurring no cost exposure.

Notable Quotes

“The IP20 flow rate results announced today of 10.3 MMcf/d is another positive development as we move towards commercial production. As further results become available, we look forward to updating the market.” – Philip O’Quigley, CEO