07:05 AM EDT, 06/16/2025 (MT Newswires) -- Falcon Oil & Gas ( FOLGF ) , which at last look surged 27% in early London trading, on Monday said it recorded its highest 30-day initial production result in the Beetaloo Sub-basin in Northern Territory, Australia.

The Shenandoah S2-2H ST1 achieved an average 30-day IP30 flow rate of 7.2 million cubic feet per day over 1,671 meters across a 35 stage stimulated length within the Amungee Member B-Shale, the company said.

The result demonstrates the commercial deliverability of gas from the Amungee Member B-Shale in the Australian East Coast gas market that typically sells at a premium to the U.S. Henry Hub and under long-term contracts.

The Shenandoah South drilling campaign is set to begin in July, targeting up to three 10,000-foot horizontal wells. Falcon Oil & Gas Australia has opted to reduce its participating interest in the three wells to 0%.

The wells will feed into a 40 MMcf/d take-or-pay gas sales agreement with the Northern Territory government. Production is on track to start in mid-2026.

"The IP30 flow rate results announced today of 7.2 MMcf/d, are truly stellar and marks another major data point in the Beetaloo Sub-basin again demonstrating that it compares to the best shale wells in the United States," said Falcon CEO Philip O'Quigley.