11:55 AM EDT, 08/30/2024 (MT Newswires) -- Falcon Oil & Gas ( FOLGF ) on Friday said it started its 2024 drilling program with the spudding of the Shenandoah South 2H horizontal well in exploration permit 98 in the Beetaloo sub-basin, Northern Territory, Australia.

The project is being developed by joint venture partners Falcon Oil & Gas Australia and Tamboran (B2) Pty.

Following the drilling of the SS2H well, Tamboran will immediately move to the Shenandoah South 3H well off the same well pad location ahead of the stimulation program.

Both wells will include a horizontal section of about 3,000 meters and will target the Amungee Member B-shale at an estimated target depth of 3,020 meters. Each well is expected to be drilled in 30 days.

Initial flow test results from each well are expected in Q1 2025. Upon completion of flow testing, both wells will be suspended as future producers to supply the proposed Shenandoah South Pilot Project, which is expected to commence production in the first half of 2026.

An additional four-well program is planned for 2025, which will complete the drilling for the Shenandoah South Pilot Project. The project will supply 40 million cubic feet per day to the Northern Territory government.

Falcon Australia will participate in both wells in the Shenandoah South Pilot Project at its elected participating interest of 5%.

Falcon's shares were last seen up $0.005 to $0.095 on the TSX Venture Exchange.

Price: 0.10, Change: +0.01, Percent Change: +5.56