11:44 AM EDT, 06/16/2025 (MT Newswires) -- (Updates shares.)

Falcon Oil & Gas ( FOLGF ) 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 well produced initial flow rates of 7.2-million cubic feet per day of natural gas 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 pricing 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 chief executive Philip O'Quigley.

The company's shares were last seen up $0.01 to $0.14 on the TSX Venture Exchange.

Price: 0.13, Change: +0.01, Percent Change: +4.00