Falcon Oil Announces Gas Composition Data for Kyalla 117 N2-1H ST2 Well

Falcon Oil & Gas Ltd. (FOG) is pleased to announce the following update on the first gas composition data obtained during the 17-hour unassisted flow period of the Kyalla 117 N2-1H ST2 well (“Kyalla 117”) in the Beetaloo Sub-basin, Australia.

The initial analysis of natural gas by gas chromatography confirms a liquids-rich gas stream low in CO2 as follows:

- C1 = 65.03 mol%
- C2 = 18.72 mol%
- C3 = 8.37 mol%
- iC4 = 1.29 mol%
- nC4 = 2.03 mol%
- C5+ = 2.73 mol%
- CO2 = 0.91 mol%
- N2 = 0.92 mol%

The elevated C3+ gas component of 14.42 mol%, which meets our pre-drill expectations, confirms the Lower Kyalla Shale as a liquids-rich gas play. Gas composition data also support the view that the Kyalla gas stream will have elevated LPG and condensate yields.

As announced on 19 January 2021, longer term measures will be put in place to flow back sufficient hydraulic fracture stimulation water to allow the Kyalla 117 to flow continually without assistance. This work is expected to commence at the start of the dry season in Q2 2021 and if successful will allow an extended production test ("EPT") of between 60 and 90 days to commence.

Philip O’Quigley (CEO of Falcon) commented:
“The initial gas composition data are very encouraging providing a strong indication for the liquids rich gas play in the Kyalla formation. We will update the market when operations recommence at Kyalla 117 at the beginning of the dry season in Q2 2021.”