Falcon Oil & Gas Australia Limited (“Falcon Australia”) is a majority owned subsidiary of Falcon Oil & Gas Ltd,
Falcon Australia is an Australian unlisted public company, engaged in the exploration and development of world class conventional and unconventional oil & gas resources in the Beetaloo Basin, Northern Territory.
Falcon Australia holds a 30% interest in approximately 4.6 million gross acres comprised of Exploration Permits 98, 76, and 117 covering the majority of the Beetaloo Basin.
On 21 August 2014, Falcon Australia completed a Farm-Out Agreement and Joint Operating Agreements with Origin Energy Resources Limited, a subsidiary of Origin Energy Limited (“Origin”) and Sasol Petroleum Australia Limited, a subsidiary of Sasol Limited (“Sasol”), collectively referred to herein as “the Farminees”, each farming into 35% of Falcon’s Exploration Permits in the Beetaloo Basin, Australia.
On 29 May 2015, Falcon announced that drilling operations have commenced on its initial three well fully funded drilling campaign in the Beetaloo Basin, in the Northern territory of Australia.
Map of proposed well locations
Falcon is fully carried for all 2015 drilling and evaluation costs, retaining its 30% interest in the Beetaloo Basin with co-venture partners Origin and Sasol.
The principal objectives of the 2015 three well drilling programme are to:
· penetrate the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality;
· evaluate oil versus gas maturity and determine the most prospective areas and depth window;
· provide further information on the aerial distribution of the target Middle Velkerri formation; and
· collect data points for subsequent vertical/horizontal drilling, completion and production testing.
Formation evaluation and reservoir characterisation will be carried out from these initial three wells through petrophysical interpretation, core analysis, geomechanical studies and stimulation design.