Falcon Oil & Gas Ltd. Announces Beetaloo Operational Update - Stimulation Campaign & Remaining Shenandoah South Pilot Project

Published: 2025-05-14 02:00:00 ET FO.V

Published on 05/14/2025 at 02:00, updated on 05/14/2025 at 04:20

Falcon Oil & Gas Ltd. notes the press releases from Tamboran Resources Corporation issued on 13 May 2025. Tamboran's announcements confirmed: the commencement of flow testing at the Shenandoah S2-2H ST1 ("SS-2H ST1") well in the Beetaloo Sub-basin, Northern Territory, Australia; agreements entered to complete a USD 55.4 million private placement and a USD 15 million asset sale (at USD 150/acre) to provide Tamboran with necessary funding to drill three wells commencing in mid-2025 and stimulate four wells (including the Shenandoah S2 -4H well drilled late last year) in a single campaign planned for late 2025 /1H 2026 subject to JV approval; and the finalisation of the checkerboard of the joint acreage position across exploration permits 76, 98 and 117 between Tamboran and Daly Waters Energy, LP ("DWE"). Key points to note: SS-2H ST1: Flow testing of SS-2H ST1 has commenced after a longer soaking period following analysis of wells across the Beetaloo Sub- basin, allowing water to imbibe into the rock, increasing the formation's relative permeability to gas.

The IP30 flow test is expected to be announced in June 2025 and testing is planned to continue for a full 90-days, subject to weather or unforeseen events. Ownership of the anticipated expansion into the southern Pilot Area containing 20,309 acres will be Falcon at 22.5%, Tamboran 38.75% and DWE (operator) 38.75%. Falcon is uniquely placed as the only party with an interest across all checkboard pieces.

Operator Funding for the completion of the Shenandoah South Pilot Project: Tamboran has confirmed that following the completion of its fundraising, it expects to be fully funded to drill and complete the remaining three wells required to deliver first gas under the Shenandoah South Pilot project, with first gas planned for mid-2026. Falcon has opted to reduce its interest in these three remaining wells to be drilled to zero %. Valuation of acreage: DWE and Tamboran have entered into a binding agreement whereby DWE will acquire a non-operating and non-controlling interest across 100,000 acres within two areas of Tamboran's post-checkerboard acreage position for a consideration of USD 15 million, equating to USD 150/acre.

The USD 150/acre would translate to a valuation of Falcon's acreage at a minimum of USD 150 million.