Falcon Oil & Gas initiates key IP30 testing at Shenandoah South 1H well in Beetaloo Basin
Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG), a key player in the energy sector, has officially announced the start of the 30-day initial production (IP30) testing at the Shenandoah South 1H (SS1H) well in EP117 in Australia. This notable development is being managed by Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran B2 Pty Limited.
The commencement of the IP30 test at the SS1H well follows the successful completion of a 10-stage stimulation program, initially announced on December 7, 2023. This step was crucial in preparing the well for production, involving the installation of production tubing and allowing for the flow back of stimulation fluid. For optimal operational efficiency, the SS1H well underwent a three-week soak period, ending with its successful reopening on January 25, 2024. This soaking process is instrumental in enhancing the well’s production performance, particularly by increasing the shale’s relative permeability to gas.
The results from this IP30 testing, which are eagerly anticipated by February end, will be a significant indicator of the well’s commercial viability. Falcon Oil & Gas Ltd. estimates the flow rates to be around 1.5 million cubic feet per day (MMcf/d) over a 500-metre horizontal section. This rate is expected to normalize to 3.0 MMcf/d over a 1,000-metre span. A successful outcome will pave the way for the sanctioning of a proposed 40 MMcf/d pilot project at Shenandoah South, potentially in the first half of 2024.
Shenandoah South 1H Well: Falcon Oil & Gas Ltd Commences Crucial 30-Day Production Test
Philip O’Quigley, CEO of Falcon, expressed optimism about this new phase, stating, “We look forward to this next phase of operations with the initial production testing of the SS1H well in the Beetaloo and will continue to update the market as results become available.”
This initiative by Falcon Oil & Gas Ltd. represents a significant step in the exploration and utilization of natural gas resources in the Beetaloo Basin. The successful implementation of the IP30 test could mark a pivotal moment in the energy sector, particularly for natural gas production in the region.
The commencement of the IP30 testing by Falcon Oil & Gas Ltd at the SS1H well is a strategic move in the energy industry, indicating a strong potential for significant natural gas production. This operation, if successful, could set a new benchmark in shale gas extraction techniques and potentially boost the company’s profile in the global oil and gas market.