2023-06-22 03:40 ET - News Release

Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - AMUNGEE NW-2H WELL UPDATE

Falcon Oil & Gas Ltd. has provided the following update on operations at the Amungee NW-2H in the Beetaloo subbasin in Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd. (collectively the joint venture).

Background

In December, 2022, the A2H well was drilled to a total depth (TD) of 3,883 metres, including a 1,275-metre horizontal section within the Amungee Member B shale, with a 25-stage stimulation program completed across a 1,020-metre horizontal section in March 2023. Operations to install production tubing were completed in late-April 2023 and the well was subsequently re-opened in preparation for production flow testing. This is only the sixth well drilled and fracture stimulated in the Beetaloo Sub-basin to date.

Update on Flow Testing

• The A2H well achieved gas breakthrough, however, modelling and independent third-party analysis from a US laboratory identified a potential skin inhibiting the flow of gas from the stimulated shale. Despite this, the gas has flowed at an average rate of 0.97 mmcf/d over 50 days with circa 10% of the water used in the simulation programme recovered to date, well below other wells in the basin.
• The JV believe flows from the well are yet to establish an uninhibited 30-day initial production rate.
• The well is currently producing approximately 0.83 mmcf/d and water recovery is approximately 50 bbl/d with cumulative gas production and water recovery of 52.37 mmcf and 17,879 bbl, respectively.
• The hydrocarbon phases recovered are dry gas with 90.4% methane and 2.9% ethane.
• The JV believes the results are not indicative of the underlying production potential of the Amungee Member B Shale as the Amungee NW-1H well ("A1H") achieved flow rates of >5 mmcf/d over a normalised 1,000 metres from the same well pad in 2021. Comparative details are included in the table below:

• Results from the laboratory will continue to test fluid samples to determine how the JV can potentially clean-up potential skin within the A2H well and apply learnings going forward on future completion operations. Updates to the market will be provided as further results and conclusions become available.
• Analysis is also being conducted to compare the completion and stimulation design of the A2H well and the A1H fracture stimulation in 2016, which had a production logging test completed in 2021, to establish the optimum approach to future completion and fracture stimulation designs.

Forward Work Programme

The JV partners will continue to focus on interpreting the results to date and completing the test and analysis work, to determine if there is clean-up work that can be carried out on the A2H well in Q3 2023.

The JV is also considering undertaking a two well drilling programme in the second half of this year which, once formally approved by the JV, will include drilling a well at Shenandoah South ("SS1H") in exploration permit 117, 60 kilometres south of A2H (from the same pad Kyalla 117 N2-1H ST2 was drilled) in Q3 2023 targeting deeper acreage in the JV exploration permits followed by drilling Amungee 3H ("A3H"), a well in close proximity to the existing two Amungee wells.

Further details will be announced to the market once the JV has formally approved the work program. Philip O'Quigley, Falcon's CEO , commented : " Initial flow rate s demonstrated from the A2H well to date do not reflect the true deliverability of the shale in the Amungee region. Being the sixth well drilled and stimulated within the Amungee member within the Beetaloo Sub-basin, we continue to learn from how the shale is stimulated and performs under varying conditions. Further analysis of all available data together with any clean-up work will hopefully yield more positive interpretation of the results obtained to date .

We look forward to being able to use all the learnings from this A2H well and other work conducted in th e Beetaloo Sub- basin to date in order to allow the JV to design a modified drill ing and completion program me for the proposed upcoming two-well drilling program which hopefully will deliver a successful outcome for our shareholders.

Falcon remains in a very strong financial position with circa US$ 16 million in cash and rem a ins carried for costs at this time. "

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas Ltd'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 AAPG.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary. Falcon Oil & Gas Australia Limited is a c. 98% subsidiary of Falcon Oil & Gas Ltd.

About Tamboran B2 Pty Limited

Tamboran (B1) Pty Limited ("Tamboran B1") is the 100% holder of Tamboran B2 Pty Limited, with Tamboran B1 being a 50:50 joint venture between Tamboran Resources Limited and Daly Waters Energy, LP (Sheffield).

Tamboran Resources Limited, is a natural gas company listed on the ASX (TBN) and U.S. OTC markets (TBNNY). Tamboran is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing the significant low CO2 gas resource within the Beetaloo Basin through cutting-edge drilling and completion design technology as well as management's experience that in successfully commercialising unconventional shale in North America.

Bryan Sheffield of Daly Waters Energy, LP is a highly successful investor and has made significant returns in the US unconventional energy sector in the past. He was Founder of Parsley Energy Inc. ("PE"), an independent unconventional oil and gas producer in the Permian Basin, Texas and previously served as its Chairman and CEO. PE was acquired for over US$7 billion by Pioneer Natural Resources Company ("Pioneer"), itself a leading independent oil and gas company and with the PE acquisition became a Permian pure play company. Pioneer has a current market capitalisation of c. US$60 billion.