Falcon Oil & Gas Ltd. Falcon Oil & Gas Ltd. : Four Additional Potential Plays In The Beetaloo Basin, Australia

 
TIDMFOG 
 
 
   Falcon Oil & Gas Ltd. ("Falcon") 
 
   Four additional potential plays in the Beetaloo Basin, Australia 
 
   15 May 2018 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) is 
pleased to report that Origin Energy Limited ("Origin") presented a 
technical paper, headlined - "Australia's premier shale basin: 5 plays 
1,000,000,000 years in the making", at the Australian Petroleum 
Production and Exploration Association ("APPEA") Conference in Adelaide 
earlier today. The key findings are summarised below. 
 
   Overall 
 
 
   -- Origin has identified four additional potential plays in the Beetaloo 
      sub-basin in addition to the existing and explored Velkerri shale dry gas 
      play, namely; 
 
          -- Velkerri shale liquids rich gas play, 
 
          -- Kyalla shale and hybrid liquids rich gas plays, and 
 
          -- Hayfield sandstone oil/condensate play. 
 
   -- The Velkerri shale dry gas remains the most materially and technically 
      mature resource. 
 
   -- Origin stated, "as such, the Beetaloo provides the JV with a diversified 
      portfolio of material multi-TCF plays, each with the potential to 
      redefine Australia's energy market." 
 
 
   Velkerri shale liquids rich gas play 
 
 
   -- Located along the northern and south-eastern flanks of the Beetaloo 
      sub-basin. 
 
   -- Indications that porosity and permeability are higher in these areas. 
 
   -- Gas composition and maturity modelling indicate a possible condensate to 
      gas ratio ("CGR") in the region of 5-40 bbl/MMscf. 
 
   -- A horizontal fracture stimulated well to test the deliverability of the 
      play is required to assess technical viability. 
 
 
   Kyalla shale and hybrid lithology liquids rich gas play 
 
 
   -- Two related liquid rich gas play types have been identified for further 
      appraisal: 
 
          -- shale play targets, and 
 
          -- hybrid play targets. 
 
   -- Prospective areas are interpreted to be confined to the JV's permits. 
 
   -- There is likely a cost advantage over the Velkerri shale dry gas play as 
      it is shallower. 
 
   -- Liquid yields could be in the range of 15-60 bbl/MMscf. 
 
   -- Additional work is required to rank these plays for further appraisal. 
 
 
   Hayfield sandstone oil/condensate play 
 
 
   -- Interpreted as a thin but regionally extensive sandstone confined to the 
      north of the JV permits. 
 
   -- Strong wet gas shows in the Amungee NW-1 and other regional wells suggest 
      the presence of liquid hydrocarbons without significant formation water. 
 
   -- The Hayfield Sandstone is a tight sandstone with a significant secondary 
      porosity network (but low matrix permeability) and potentially the 
      presence of open, uncemented, hydrocarbon filled natural fractures. 
 
   -- Anticipated to have the highest liquid yields and lowest well costs that 
      could contribute to improved economics of a stacked play development. 
 
   -- Success will be dependent on the combination of system permeability and 
      resource density. 
 
   -- Would require a horizontal fracture stimulated well to assess the 
      technical viability of the play. 
 
   Philip O'Quigley, CEO of Falcon, commented: 
 
   "The Beetaloo sub basin provides us with an exciting diversified 
portfolio, having exposure to all five identified plays.  When activity 
resumes, the JV will look to demonstrate improved well deliverability 
through longer laterals in the Velkerri shale while simultaneously 
seeking to prove up high value plays with increased liquids potential 
with lower well cost and improved economics. We look forward to 
announcing a forward exploration and appraisal drilling programme in due 
course." 
 
   For further information, please contact: 
 
   CONTACT DETAILS: 
 
 
 
 
Falcon Oil & Gas Ltd.               [phone] 
Philip O'Quigley, CEO              [phone] 
Anne Flynn, CFO                     [phone] 
 
Davy (NOMAD & Joint Broker) 
John Frain / Barry Murphy           [phone] 
 
RBC (Joint Broker) 
Matthew Coakes / Martin Copeland   [phone] 
 
   Advisory regarding forward looking statements 
 
   Certain information in this press release may constitute forward-looking 
information. Any statements that are contained in this news release that 
are not statements of historical fact may be deemed to be 
forward-looking information. Forward-looking information typically 
contains statements with words such as "may", "will", "should", "expect", 
"intend", "plan", "anticipate", "believe", "estimate", "projects", 
"dependent", "potential", "scheduled", "forecast", "outlook", "budget", 
"hope", "support" or the negative of those terms or similar words 
suggesting future outcomes.  This information is based on current 
expectations that are subject to significant risks and uncertainties 
that are difficult to predict.  Such information may include, but is not 
limited to, comments made with respect to the type, number, schedule, 
stimulating, testing and objectives of the wells to be drilled in the 
Beetaloo basin Australia, the prospectivity of the Middle Velkerri play 
and the prospect of the exploration programme being brought to 
commerciality,  risks associated with fluctuations in market prices for 
shale gas; risks related to the exploration, development and production 
of shale gas reserves; general economic, market and business conditions; 
substantial capital requirements; uncertainties inherent in estimating 
quantities of reserves and resources; extent of, and cost of compliance 
with, government laws and regulations and the effect of changes in such 
laws and regulations; the need to obtain regulatory approvals before 
development commences; environmental risks and hazards and the cost of 
compliance with environmental regulations; aboriginal claims; inherent 
risks and hazards with operations such as mechanical or pipe failure, 
cratering and other dangerous conditions; potential cost overruns; 
variations in foreign exchange rates; competition for capital, equipment, 
new leases, pipeline capacity and skilled personnel; the failure of the 
holder of licenses, leases and permits to meet requirements of such; 
changes in royalty regimes; failure to accurately estimate abandonment 
and reclamation costs; inaccurate estimates and assumptions by 
management and their joint venture partners; effectiveness of internal 
controls; the potential lack of available drilling equipment; failure to 
obtain or keep key personnel; title deficiencies; geo-political risks; 
and risk of litigation. 
 
   Readers are cautioned that the foregoing list of important factors is 
not exhaustive and that these factors and risks are difficult to 
predict. Actual results might differ materially from results suggested 
in any forward-looking statements.  Falcon assumes no obligation to 
update the forward-looking statements, or to update the reasons why 
actual results could differ from those reflected in the forward 
looking-statements unless and until required by securities laws 
applicable to Falcon. Additional information identifying risks and 
uncertainties is contained in Falcon's filings with the Canadian 
securities regulators, which filings are available at www.sedar.com, 
including under "Risk Factors" in the Annual Information Form. 
 
   This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & 
Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology 
degree at the Eötvös L. University in Budapest, Hungary and 
his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a 
member of AAPG. 
 
   About Falcon Oil & Gas Ltd. 
 
   Falcon Oil & Gas Ltd is an international oil & gas company engaged in 
the acquisition, exploration and development of conventional and 
unconventional oil and gas assets, with the current portfolio focused in 
Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is 
incorporated in British Columbia, Canada and headquartered in Dublin, 
Ireland with a technical team based in Budapest, Hungary. 
 
   For further information on Falcon Oil & Gas Ltd. please visit 
www.falconoilandgas.com 
 
   About Origin Energy 
 
   Origin Energy (ASX: ORG) is the leading Australian integrated energy 
company. Origin is the leading energy retailer with approximately 4.2 
million customer accounts, has approximately 6,000 MW of power 
generation capacity and is also a large 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 
 
 
 
 
bbl    stock tank barrels of oil 
CGR    condensate to gas ratio 
JV     Joint venture 
MMscf  million standard cubic feet 
TCF    trillion standard cubic feet 
 
 
   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. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Falcon Oil & Gas Ltd. via Globenewswire 
 
 
  http://www.falconoilandgas.com/ 
 

(END) Dow Jones Newswires

May 15, 2018 02:00 ET (06:00 GMT)

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