Falcon Oil reports progress on Beetaloo stimulation campaign

(Sharecast News) - Falcon Oil & Gas updated the market on its stimulation campaign in the Beetaloo Sub-basin of Australia's Northern Territory on Thursday, where it is working alongside joint venture partner Tamboran B2.

The AIM-traded firm said that at the Shenandoah S2-2H ST1 well, stimulation operations had been completed over 35 stages along a 1,671-metre horizontal section.

It said the well was now being prepared for initial flow back and extended production testing, with 30-day initial production (IP30) flow rates expected to be announced in April.

Operations at the Shenandoah South 4H well started in January, but were temporarily paused after stress was detected in a casing connection.

Reinforcement activities were planned for the first quarter, with stimulation expected to resume in the second quarter after the SS-2H ST1 IP30 test was complete.

The company said it was expecting to report flow rates from the well in mid-2025.

Falcon Australia recently received an AUD 4.7m (£2.36m) research and development tax offset in cash, bringing the group's total cash balance to $8.2m.

"We continue to be extremely encouraged about the potential of the current stimulation programme based on strong gas shows and other data observed whilst drilling, together with the completion of a successful stimulation program on SS-2H ST1 well," said chief executive officer Philip O'Quigley.

"We look forward to updating the market on the IP30 flow test results from both wells as soon as they become available."

At 0956 GMT, shares in Falcon Oil & Gas were up 0.55% at 7.29p.

Reporting by Josh White for Sharecast.com.