Falcon Oil & Gas Update on Australia, Hungary, South Africa Assets
Ireland-based Falcon Oil & Gas Ltd. provided the following operational update on its assets in Australia, Hungary and South Africa.
Results of Seismic Program in Beetaloo Basin, Australia
Under the terms of the 2011 Participation Agreement, in 2011 and 2012 Hess acquired 2,168.6 miles (3,490 kilometers) of 2D seismic data and invested in excess of $80 million during that period but at no cost to Falcon. The seismic database, along with existing well data, provides a very solid platform to extrapolate a detailed structural and stratigraphic model for the main parts of the Beetaloo Basin, Australia.
All the necessary elements of a productive unconventional and conventional petroleum system have been identified in multiple shales and sand reservoirs, and it is now clear that the Beetaloo Basin is an active petroleum system.
Three hydrocarbon plays, the shale gas potential in the basin centre, a shale oil play in the northern part of the permits and conventional prospects have been identified throughout the acreage. Recent interpretation of the seismic database mapped out several conventional drilling targets that are promising areas of hydrocarbons accumulation in the form of structural closures and traps.
Farm-out Discussions in Australia Advancing
Further to our press release dated July 1 Falcon has been approached by several oil and gas companies interested in farming into the Beetaloo Basin. Falcon is well advanced in its discussions with a number of companies and is very confident of securing an attractive farm-out deal with a large oil and gas company. Falcon will provide an update to the market when able to do so.
Acquisition of Sweetpea’s shares in Falcon Australia
In order to consolidate its interest in Australia Falcon acquired Sweetpea Petroleum Pty Ltd.’s (Sweetpea) 50 million shares or 24.22 percent interest in Falcon Oil & Gas Australia Limited (FOGA) in July 2013. FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion of the Share Purchase, Falcon owns 96.9 percent of the issued share capital of FOGA. The total value of the consideration was $21.8 million (CAD 22.6 million) including $2.86 million (CAD 3 million) in cash and the balance in Falcon common shares. Sweetpea, a wholly owned subsidiary of PetroHunter Energy Corporation, now owns 10.7 percent of the issued share capital of Falcon.
Preparing to Test the Kútvölgy-1 Well, Hungary
The Kútvölgy-1 well was the first of a planned three well programme to evaluate the gas potential of the Algyő formation in the Makó Trough. As expected, the top of the Algyő formation was encountered at 1,855 feet (2,985 meters) and the well then penetrated an alternating sequence of sandstones, siltstones and shales over a gross interval of 199 feet (320 meters) to total depth (TD), with gas shows throughout. Two conventional cores have been taken and extensive wireline logs were run.
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