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Falcon Oil & Gas Ltd: DEEP DIVE
OVERVIEW

Falcon Oil & Gas nears re-start of exploration at Beetaloo

The exploration and appraisal programme will include the drilling and hydraulic fracture stimulation of two horizontal wells
Northern Territory
OVERVIEW: FOG The Big Picture
Falcon has option over rig into 2020

 

  • Falcon Oil & Gas Ltd (LON:FOG) has interests in Australia’s Northern Territory (Beetaloo), South Africa (Karoo) and Hungary (Mako Trough)

  • Drilling set to re-commence at Beetaloo, where Origin Energy is the operator

  • The exploration and appraisal programme will include the drilling and hydraulic fracture stimulation of two horizontal wells, with drilling slated to start in June.

  • Falcon had been held up by 2-year delay imposed by the fracking moratorium in Australia’s Northern Territory.

  • Company had US$6.9mln of cash and was debt free at last year end

 

What it owns

Beetaloo - Falcon's Australia arm holds a 30% interest in 4.6mln gross acres in exploration permits EP76, EP98 and EP117 covering the most prospective core area of the Beetaloo Sub-basin.

The Beetaloo Sub-basin is located in the Northern Territory, 600 kilometres south of Darwin and close to infrastructure including a highway, a pipeline and a railway.

Karoo Basin - Karoo covers an area of 7.5mln acres. Falcon submitted its application to the Petroleum Agency of South Africa in 2010. 

Mako Trough - Falcon has been active in the Makó Trough since 2004 when it acquired the Makó and Tisza exploration licences

 

How is it doing

Operationally, the focus is on the upcoming work programmes in the Beetaloo basin, in Australia’s Northern Territory.

The exploration and appraisal programme will include the drilling and hydraulic fracture stimulation of two horizontal wells, with drilling slated to start in June.

In May, Falcon reported that the environmental management plan for the Kyalla 117 N2 exploration well had been accepted with a 28-day consultation period underway before the Northern Territory Department of Environment and Natural Resources makes a decision.

“Acceptance for assessment of the Kyalla 117 N2 Exploration Well EMP targeting the Kyalla shale is an exciting development for Falcon shareholders,” said Philip O’Quigley, chief executive.

The Beetaloo shale project, 30% owned by Falcon, is estimated to host some 85 trillion cubic feet of technically recoverable gas resources.

 

Karoo, Mako

In South Africa, Falcon expects the exploration right over the acreage in the Karoo Basin will be awarded this year

This licence is about 173 million acres and contains thick, organic-rich shales such as the Permian Whitehill formation.

Falcon is continuing to review its operations in Hungary, which includes the Makó Trough. 

 

What the boss says: Philip O'Quigley, chief executive

 

"Stage 2 in June will be targeting two separate formations. It will cost A$65mln and Falcon is fully carried. Getting a rig secured and an option over it until 2020 was important for us.

"Technically its two penetrations at surface but four wells in all. Once programme starts it will carry through until November."

 

Video

 

 

Inflexion points

Drilling approval granted at Beetaloo

Activity commences and results from two wells on the licence

Exploration licences granted for Karoo Basin acreage

Newflow starts at June and carries through un til November

Stage 3 wil involve testing propsect that can be commercialised the quickest

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Falcon Oil & Gas Ltd Timeline

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