Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(FOG.L)(FAC) is pleased to announce the spudding of the Kalala S-1 well in the Beetaloo Basin, Australia. Kalala S-1 is the first of Falcon's fully funded and uncapped, 2015 three well drilling and evaluation programme in the Beetaloo Basin. The 2015 three well programme is the commencement of a nine well exploration and appraisal programme planned from 2015 to 2018.
- Kalala S-1 is the first well of the initial 2015 three well fully funded drilling programme, targeting the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality.
- Kalala S-1 is located within exploration permit 98, with access from the existing Carpentaria Highway, and will be drilled to a total depth of approximately 2,800 meters.
- Rig 185, an ATS 400 has been commissioned from Saxon Energy Services Australia Pty. Ltd, a Schlumberger company.
- It is estimated that drilling will take approximately 35 to 50 days.
- Kalala S-1 is to be operated by Origin Resources Limited ("Origin") (35%) with partners Sasol Petroleum Australia Limited ("Sasol") (35%) and Falcon (30%).
Falcon is fully carried for all 2015 drilling and evaluation costs, retaining its 30% interest in 4.6 million gross acres of the Beetaloo Basin with co-venture partners Origin and Sasol.
The principal objectives of the 2015 three well drilling programme are to:
- penetrate the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality;
- evaluate oil versus gas maturity and determine the most prospective areas and depth window;
- provide further information on the aerial distribution of the target Middle Velkerri formation; and
- collect data points for subsequent vertical/horizontal drilling, completion and production testing.
Formation evaluation and reservoir characterisation will be carried out from these initial three wells through petrophysical interpretation, core analysis, geomechanical studies and stimulation design.