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Falcon Oil & Gas Ltd.
(“Falcon” or the “Company”)

Kyalla 117 N2-1H ST2 Update

October 7, 2021 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) notes that production tests are now complete and the well closed at Kyalla 117 N2-1H ST2 (“Kyalla 117”) In the Beetaloo sub-basin, Northern Territory, Australia with our joint venture partner, Origin Energy B2 Pty Ltd., a wholly owned subsidiary of Origin Energy Limited.

As reported in the Company’s press release of July 20, 2021, while Kyalla 117 circulated liquid-rich gas unassisted for intermittent periods, production was not sustained and there were indications of a potential restriction of the bottom flow.

On September 14, coil operations resumed at Kyalla 117. No apparent restrictions or blockages were identified in the production casing. After rising nitrogen, the well was able to sink without assistance at flow rates between 0 (i.e. flow rates too low to be measured) and 1.5 MMcsfd for five days before filling with water. Gas composition data is not yet available, but gas density data is similar to that measured in the previous test phase. Traces of condensate were also observed.

Further analysis will be undertaken, including additional core analysis and well design considerations, to allow a conclusion to be drawn on the results of operations at Kyalla 117, which will inform the future approach to further drilling and drilling. testing of the Kyalla area in the Beetaloo submarine. -Bowl.

The objective of the current exploration campaign was to collect data on the three main permit areas: Velkerri dry gas, Velkerri liquids rich and Kyalla liquids rich. Despite the challenges, the Kyalla remains a viable target within the Beetaloo. Kyalla 117 was the first horizontal well targeting Kyalla and achieved its primary technical objective of demonstrating the potential for liquid-rich gas flow from Kyalla.

Reminder on gas composition
The initial analysis of natural gas by gas chromatography confirmed a gas flow rich in liquids and poor in CO2 as following:

  • VS1 = 65.03 mol%
  • VS2 = 18.72 mole%
  • VS3 = 8.37 mol%
  • iC4 = 1.29 mole%
  • NC4 = 2.03 mol%
  • VS5+ = 2.73 mol%
  • CO2 = 0.91 mole%
  • NOT2 = 0.92 mole%

The high C3+ 14.42 mol% gas component, confirmed the Lower Kyalla shale as a liquid-rich gas deposit. The gas composition data also supports the view that the Kyalla gas stream will have high LPG and condensate yields.

This announcement contains inside information.

Philip O’Quigley (CEO of Falcon) commented:
“Information gathered from this first horizontal well drilled in the Kyalla Liquid Rich Zone, including the high liquids component, has confirmed that Kyalla remains an attractive target for further assessment. Our immediate focus will now be on the Velkerri play area where we are currently drilling a new exploration well into the potentially fluid-rich flank of the basin; an area of ​​major interest for the Beetaloo sub-basin. We look forward to updating the market as soon as the results of this well are available ”

Ends.

CONTACT DETAILS:

Falcon Oil & Gas Ltd. +353 1 676 8702
Philip O’Quigley, CEO +353 87 814 7042
Anne Flynn, Chief Financial Officer +353 1 676 9162
Cenkos Securities plc (NOMAD & Broker)
Neil McDonald / Derrick Lee +44 131 220 9771
Camarco
James Crothers / Rebecca Waterworth / Billy Clegg +44 (0) 20 3781 8331

This announcement was reviewed by Dr Gábor Bada, Technical Operations Manager of Falcon Oil & Gas Ltd. Dr Bada received his degree in geology from Eötvös L. University in Budapest, Hungary, and his doctorate from Vrije Universiteit Amsterdam, the Netherlands. He is a member of the AAPG.

About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused on Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and is 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. Falcon Oil & Gas Australia Limited and a wholly-owned subsidiary of Origin Energy Limited (ASX: ORG) (“Origin Energy“) are joint venture partners in the Beetaloo project.

For more information on Falcon Oil & Gas Ltd., please visit www.falconoilandgas.com

About Origin Energy
Origin Energy is one of Australia’s leading integrated energy companies. Origin is a leading energy retailer with approximately 4.2 million accounts receivable, has approximately 7,500 MW of proprietary and contracted power generation capacity, and is also a major supplier of natural gas. Origin is the upstream operator of Australia Pacific LNG, which supplies natural gas to domestic markets and exports LNG on long-term contracts.

www.originenergy.com.au

Glossary of terms

VS1 Methane
VS2 Ethane
VS3 Propane
VS3+ Propane and heavier constituents of natural gas
iC4 Iso-butane
NC4 N-butane
VS5+ Pentane and the heavier constituents of natural gas
CO2 Carbon dioxide
LNG Liquefied natural gas
LPG Liquefied petroleum gas
MMscf / d Million standard cubic feet per day
molar% molar percentage
NOT2 Nitrogen
MW Megawatt

Notice Regarding Forward-Looking Statements
Certain information contained in this press release may constitute forward-looking information. All statements contained in this press release that are not statements of historical fact can be considered as forward-looking information. Forward-looking information generally contains statements with words such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “dependent”, “potential”, “planned”, “forecast”, “prospect”, “budget”, “hope”, “support” or the negative of these or similar words suggesting future results. In particular, the forward-looking information contained in this press release includes, without limitation, comments regarding the results of operations at Kyalla 117, drilling in the Velkerri zone, the prospectivity of the Middle Velkerri and Kyalla zones and the prospect of the exploration program currently being commercialized. This information is based on current expectations which are subject to significant risks and uncertainties which are difficult to predict. Risks, assumptions and other factors that could influence actual results include risks associated with fluctuations in market prices for shale gas; risks associated with the exploration, development and production of shale gas reserves; general economic, market and business conditions; significant capital requirements; uncertainties inherent in estimating quantities of reserves and resources; the extent and cost of complying with government laws and regulations and the effect of changes in such laws and regulations; the need to obtain regulatory approvals before development begins; environmental risks and hazards and the cost of complying with environmental regulations; indigenous claims; risks and dangers inherent in operations such as mechanical or pipeline failure, crater formation and other hazardous conditions; potential cost overruns, well drilling is speculative, often involving significant costs which may be higher than estimates and may not result in discoveries; changes in exchange rates; competition for capital, equipment, new leases, pipeline capacity and qualified personnel; failure of the licensee, leasing and permit holder to comply with the requirements thereof; changes in royalty regimes; failure to accurately estimate abandonment and reclamation costs; inaccurate estimates and assumptions by management and their joint venture partners; the effectiveness of internal controls; the potential lack of available drilling equipment; failure to obtain or retain key personnel; title deficiencies; geopolitical risks; and the risk of litigation.

Readers are cautioned that the foregoing list of important factors is not exhaustive and that these factors and risks are difficult to predict. Actual results may differ materially from results suggested in forward-looking statements. Falcon assumes no obligation to update any forward-looking statements or to update the reasons why actual results may differ from those reflected in forward-looking statements unless and until applicable securities laws. Falcon demand it. Additional information identifying risks and uncertainties is contained in documents filed by Falcon with Canadian securities regulators, which documents are available at www.sedar.com, including under the heading “Risk Factors” in the annual information form.

Notice regarding initial production rates

Any reference in this press release to initial production rates is helpful in confirming the presence of hydrocarbons; however, these rates do not determine the rates at which these wells will continue to produce and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to rely on such rates to calculate Falcon’s overall production. These rates are based on field estimates and may be based on the limited data currently available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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