07:20 AM EDT, 04/26/2024 (MT Newswires) -- Falcon Oil & Gas ( FOLGF ) on Friday reported a narrower net loss in 2023.

The loss came in at US$3.3 million, or a loss of US$0.003 per share, narrowing from a loss of US$4 million, or a loss of US$0.004 per share, in 2022.

Cash and cash equivalents at the end of the year fell to US$8 million from US$16.8 million at the end of 2022. The company said it is debt free and continues to focus on strict cost management and operating efficiently.

Separately, Falcon announced that the Shenandoah South 1H (SS-1H) well in EP117 achieved an average 90-day initial production (IP90) flow rate of 2.9 million cubic feet per day (MMcf/d), normalized to 5.8 MMcf/d over 3,281 feet.

Upon completion of the IP90 flow test, the well was delivering 2.7 MMcf/d, normalized to 5.4 MMcf/d over 3,281 feet.

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 MMcf/d over the first 90 days of production, the company said.

The result "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 US," said Falcon CEO Philip O'Quigley.

Joint venture partners Falcon Australia and Tamboran B2 Pty Limited will continue to undertake front-end engineering and design studies on the proposed Shenandoah South Pilot Project. A final investment decision is expected in mid-2024.