The Pay Zone

malcy's blog

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Falcon Oil & Gas (LON:FOG)

The results of the Kalala S-1 well in the Beetaloo appear to be very encouraging for Falcon, Origin and Sasol. The first well in a larger carried programme for the company is ‘very encouraging’, with a thick middle Velkerri source rock sequence falling in a highly prospective gas mature depth window. A 500m + gross interval of shale gas with 150m + of net pay and the presence of moveable hydrocarbons in the form of elevated gas shows is indeed very exciting. In addition the company say that there are a number of good reservoir sections with potential for horizontal drilling and targets for ‘material volumetric upside’ giving serious potential. Falcon has the potential to significantly punch above its weight with this development and partnered by two of the best international players could reward shareholders substantially if the initial promise is confirmed.