Mr. Philip O'Quigley reports

FALCON OIL & GAS - SHENANDOAH SOUTH-1H WELL IP90 DAY FLOW RATES OF 2.9 MMCF/D (NORMALISED TO 5.8 MMCF/D)

Falcon Oil & Gas Ltd.'s Shenandoah South 1H (SS-1H) well in EP117 achieved above-commercial IP90 (initial production over 90 days) flow rate of 2.9 million cubic feet per day (normalized to 5.8 million cubic feet per day over 1,000 metres).

Highlights are as follows:

• The SS-1H well in EP117 achieved an average 90-day initial production (IP90) flow rate of 2.9 million cubic feet per day over the 1,644-foot (501-metre), 10-stage stimulated length within the Amungee member B-shale, normalized to 5.8 million cubic feet per day over 3,281 feet (1,000 metres).
• On completion of the IP90 flow test, the well was delivering 2.7 million cubic feet per day, normalized to 5.4 million cubic feet per day over 3,281 feet (1,000 metres) at a pressure of 518 pounds per square inch prior to being shut in.
• The SS-1H flow test indicates that future development wells with lateral lengths of 10,000 feet may be capable of delivering average rates of 17.8 million cubic feet per day over the first 90 days of production.
• The SS-1H well has demonstrated steady gas flows and decline profiles in line with some of the most prolific regions of the Marcellus shale in the United States.
• The well will now be shut in and suspended as a potential future production well.
• The Beetaloo joint venture (BJV) partners of Falcon Australia and Tamboran B2 Pty. Ltd. will continue to undertake front-end engineering and design (FEED) studies on the proposed Shenandoah South pilot project. The company expects to take final investment decision (FID) in mid-2024, subject to financing and key stakeholder approvals.
• The strong SS-1H result has further validated the decision to progress with the pilot project in the Shenandoah South region within the deep shale in Beetaloo West. The one million acres of deep shale in Beetaloo West, at a similar depth to SS-1H, has the potential to deliver the BJV's production ambition of two billion cubic feet per day (equivalent to more than 13 million tonnes per annum of LNG (liquefied natural gas) export capacity) for 40 years from a single landing zone.
• At the end of March, 2024, Falcon held approximately $4.3-million (U.S.) in cash, $4.9-million (U.S.) was raised in April, 2024, as part of an equity raise and $4-million (U.S.) for the sale of overriding royalty interests (ORRIs). Falcon Australia also has the benefit of a net carry of a further $2.5-million (U.S.).
• Falcon is now fully financed for its share of the drilling and testing of the initial two wells in the program, together with the acquisition and processing of the proposed 3-D program (330 square kilometres).

Philip O'Quigley, chief executive officer of Falcon, commented: "The SS-1H IP90 flow rate announced today of 2.9 million cubic feet per day, normalized to 5.8 million cubic feet per day over 1,000 metres, demonstrates a steady low-declining curve while holding its downhole pressure. This augurs well for the initial development in the Shenandoah South area as these rates continue to track average flow rates seen in the Marcellus shale basin in the U.S."

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia. Falcon Oil & Gas is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland. Falcon Oil & Gas Australia Ltd. is an approximately 98-per-cent subsidiary of Falcon Oil & Gas.

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