2021-08-12 07:18 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - SPUDDING OF THE VELKERRI 76 S2-1 WELL A BEETALOO SUB-BASIN

Falcon Oil & Gas Ltd. has spudded the Velkerri 76 S2-1 well in the Beetaloo subbasin, Northern territory, Australia, with joint venture partner, Origin Energy B2 Pty. Ltd., a wholly owned subsidiary of Origin Energy Ltd.

Velkerri 76 is targeting the Velkerri play along the southeastern flank of the Beetaloo subbasin, which is predicted to be in a liquids-rich gas window.

The principal objectives for the drilling of Velkerri 76 are to:

• Drill a vertical pilot well to acquire core and log and conduct a diagnostic fracture injection test data across the Velkerri;
• Penetrate the Velkerri formation to assess hydrocarbon maturity, saturation and reservoir quality;
• Provide further information on the areal distribution of the Velkerri formation;
• Collect data for potential future horizontal drilling, completion, stimulation and production testing, including ability to flow liquids-rich gas.

Philip O'Quigley (chief executive officer of Falcon) commented,

"The spudding of Velkerri 76 marks yet another exciting milestone for the joint venture and we look forward to updating the market as soon as results become available."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's head of technical operations. Dr. Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary, and his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a member of the American Association of Petroleum Geologists.