Falcon Oil & Gas Achieves Highest IP60 Flow Rate in Beetaloo, Commences 2025 Drilling Campaign
Why we think this is very good
The RNS provides highly positive news, with the Shenandoah S2-2H ST1 well achieving the highest IP60 flow rate in the Beetaloo Sub-basin to date. The results demonstrate the commercial deliverability of gas from the region, and the commencement of the 2025 drilling campaign further reinforces the significant resource potential of the Beetaloo. There are no apparent negative factors or concerns raised in the announcement.
Key Points
- Shenandoah S2-2H ST1 well achieved an average 60-day initial production (IP60) flow rate of 6.8 million cubic feet per day (MMcf/d), the highest in the Beetaloo Sub-basin to date
- Results demonstrate the commercial deliverability of gas from the Beetaloo Sub-basin to the Australian domestic East Coast gas market
- 2025 drilling campaign has commenced, targeting up to three 10,000-foot horizontal wells to be drilled back-to-back over the next few months
- Falcon Oil & Gas Australia Limited has no cost exposure to the drilling of these three wells, as it opted to reduce its participating interest to 0%
Summary
Falcon Oil & Gas Ltd. has announced that its Shenandoah S2-2H ST1 well in the Beetaloo Sub-basin, Northern Territory, Australia achieved an average 60-day initial production (IP60) flow rate of 6.8 million cubic feet per day (MMcf/d), the highest IP60 result in the Beetaloo to date. The results demonstrate the commercial deliverability of gas from the Beetaloo Sub-basin to the Australian domestic East Coast gas market, which typically sells at a premium to Henry Hub in the United States.
The company has also commenced its 2025 drilling campaign, targeting up to three 10,000-foot horizontal wells to be drilled back-to-back over the next few months. This will complete the drilling phase of the five-well Shenandoah South pilot program. Falcon Oil & Gas Australia Limited has no cost exposure to the drilling of these three wells, as it opted to reduce its participating interest to 0%.