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Falcon Oil & Gas - Drilling data from Kyalla 117 N2-1 Vertical Well Very Encouraging

20 November 2019 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that drilling of the vertical section of the Kyalla 117 N2-1 appraisal well in the Beetaloo Sub-Basin, Australia has been completed to a vertical total depth (“TD”) of 1,895 metres.

Preliminary drilling data from the vertical section of the Kyalla 117 N2-1 appraisal well confirms:

The continuation of the regionally pervasive Kyalla Fm between the Beetaloo W-1 and Amungee NW-1H wells.Elevated gas show with relatively high C3, C4 and C5 components were observed across the carbonaceous shales.

Other work carried out as part of this drilling operation included:

45 metres of conventional coring was acquired in each of the Upper and Lower Kyalla reservoir sections.Sidewall cores and extensive wireline logging have been acquired.

Horizontal drilling, stimulation and testing:

The JV is now preparing to drill the horizontal section within the Kyalla formation.Horizontal drilling will commence following the final evaluation of the vertical well results.Once completed, the horizontal section will be fracture stimulated, and production tested.The JV has prepared for continued operations during the wet season.

Philip O’Quigley, CEO of Falcon commented:

“Preliminary results of the Kyalla 117 N2-1 vertical appraisal well represents an excellent re-start to the Beetaloo drilling program. The election by the JV to immediately proceed to the drilling of the horizontal section signifies the JV’s confidence in the potential of the Kyalla shale. Whilst it is still early days to fully understand reservoir characteristics and completion quality, drilling results to date are very encouraging. Electric logs calibrated by core analysis results together with the planned fracture stimulation of the horizontal section will give us a more quantitative view on this play. We look forward to updating the market as soon as more results become available”.

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