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(Sharecast News) - Falcon Oil & Gas reported its strongest flow test to date from the Beetaloo Sub-basin in Australia on Monday, with the Shenandoah S2-2H ST1 well delivering a 60-day initial production (IP60) rate of 6.8 million cubic feet per day.
The AIM-traded firm said the result, achieved over a 1,671-metre lateral section in the Amungee Member B-Shale, marked the highest IP60 figure yet recorded in the Beetaloo.
Normalised over a 10,000-foot horizontal, the average flow rate equated to 12.4 million cubic feet per day, which Falcon said was in line with top-performing shale gas wells in the Marcellus formation in the United States.
The company noted that gas from the Beetaloo was well-positioned for the Australian east coast market, where prices typically commanded a premium to Henry Hub benchmarks.
It said the well's exit rate of 6.4 million cubic feet per day, with flowing pressure around 720 psi, showed a lower decline rate than the previous Shenandoah South 1H well over the final 30 days of testing, supporting the reservoir's long-term deliverability.
"The IP60 flow rate results announced today of 6.8 MMcf/d are truly stellar and mark another major data point in the Beetaloo Sub-basin, again demonstrating that it compares to the best shale wells in the United States," said chief executive Philip O'Quigley.
"These results, coupled with the average 30-day initial production exceeding Falcon's pre-drill commercial threshold of a normalised flow rate of three million cubic feet per day per 1,000 metres, all point towards the significant resource potential of the Beetaloo."
The announcement coincided with the start of Falcon's 2025 drilling campaign, the largest in the basin to date.
Falcon said the programme would see up to three 10,000-foot horizontal wells drilled in succession, completing the five-well Shenandoah South pilot phase.
It holds no cost exposure to the drilling of the final wells, having reduced its participating interest to zero.
"We look forward to updating the market as soon as these drilling results become available," O'Quigley added.
At 1204 BST, shares in Falcon Oil & Gas were up 6.06% at 7p.
Reporting by Josh White for Sharecast.com.