Falcon Oil upbeat on completion of Shenandoah stimulation
By Josh White
Date: Monday 15 Dec 2025
(Sharecast News) - Falcon Oil & Gas said on Monday that its Australian joint venture partner Tamboran has completed the stimulation programme at the Shenandoah South SS2-1H well in the Beetaloo Sub-basin, marking a further milestone in the development of the project.
The AIM-traded firm said the programme covered a horizontal section of around 3,050 metres within the Amungee Member B Shale, and represented the first stimulation of a horizontal well of this length for the joint venture.
A total of 58 stages were stimulated, with an average proppant intensity of 2,206 pounds per foot placed along the completed horizontal section and wellhead injection rates consistently exceeding 100 barrels per minute.
Falcon said optimisation of the stimulation design during the campaign increased stage spacing from around 50 metres to approximately 60 metres, reducing the total number of stages required and is expected to lower costs in future stimulation programmes.
An equipment issue encountered during the clean-out phase meant that about 2,632 metres, or 86%, of the horizontal section was expected to contribute to unimpeded flow, while flow from the remaining 419 metres at the toe of the well may be impeded.
Following completion with tubing, the well would undergo a 30-day soak period before being flow tested for 30 days, with 30-day initial production flow rates expected to be reported in the first quarter of 2026.
Falcon said three wells, including the second well from the 2024 drilling campaign, are expected to be stimulated in the first half of 2026 ahead of the commencement of gas sales.
All wells in the Shenandoah South Pilot Project were expected to deliver the contracted 40 million cubic feet per day required under the gas sales agreement with the Northern Territory government, subject to weather conditions and final stakeholder approvals.
As previously announced, Falcon Australia reduced its participating interest in the three wells drilled in 2025 to zero, leaving it with no cost exposure.
"This is another major milestone for the BJV partners with the stimulation of the first 3,050-metre horizontal well," said chief executive Philip O'Quigley.
"With three more wells to be stimulated in H1 2026 and planned gas sales to commence shortly thereafter, 2026 is going to be a very busy and exciting year in the Beetaloo."
He added that the definitive agreement between Falcon and Tamboran Resources Corporation was progressing, and was expected to close in the first quarter of 2026.
At 1252 GMT, shares in Falcon Oil & Gas were down 0.93% at 10.65p.
Reporting by Josh White for Sharecast.com.
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