Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
2016 financial statements are posted on Falcons homepage, hi/low-lights include : 4 cent loss per share, strong cash position, no debt, no revenue, decrease in administration expense. Ups and down are immaterial for the most part.
Also this article.
http://www.proactiveinvestors.com/companies/news/177048/falcon-oil-gas-boss-o-quigley-hopes-for-not-too-distant-restart-of-australian-shale-drilling-177048.html
Another "potential" Australian project being discussed. Kinda funny to watch these guys scramble regarding supply issues when the answer is right under their feet, or at least north of their feet.
http://mobile.abc.net.au/news/2017-04-19/cormann-confirms-federal-government-examining-west-to-east-gas-/8454820?pfmredir=sm
I agree T. Alot of shares exchanged hands the last few days at a much higher share price. I myself doubled down a couple days early, wish I would have waited until yesterday. Oh well, if this goes where I think it will a few cents won't matter much.
I am guessing the big boys are shaking the tree to garner some cheap shares before the license is handed out shortly. After that should be a JV with Chevron. And after that maybe the numbnuts in Australia take their pay under the table and let things get started down under.
T
12, April 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) notes the recent market activity in its securities. Based on a recommendation from the Investment Industry Regulatory Organization of Canada (IIROC), Falcon wishes to confirm it is fully disclosed and is not aware of any reason for this activity.
CONTACT DETAILS: Falcon Oil & Gas Ltd.+353 1 676 8702Philip O'Quigley, CEO+353 87 814 7042Anne Flynn, CFO
https://www.trustnet.com/Investments/Article.aspx?id=20170412173518H5887
Something to read while we wait.
http://www.cdu.edu.au/conference/gov-summit/index.php/2017/04/01/the-nts-futures-so-bright-i-gotta-wear-shades/
GC, thanks for info. Government interference as usual. I wish they would just buy their shares and lift the dang thing. Justifying their existence. Sounds like we are getting closer, at least.
T
Meanwhile, back in Australia it seems there's some more progress. Notice the mentions of the Deloitte report, lifting the moratorium and the discussion of a legacy fund. Pockets will be lined before the light turns green.
http://mobile.abc.net.au/news/2017-04-02/nt-fracking-inquiry-to-commission-two-more-reviews/8409122?pfmredir=sm
My uncle keeps pretty good tabs on all things Falcon and he has not mentioned anything adverse regarding Chevron. In fact, he thinks a $150-200 million JV will be coming within a year or so. Kinda like Sasol/Origin deal in Australia.
T
T, no problem at all, glad you shared the article.
Any thoughts on this Karoo news? Reading through some old articles, the venture with Chevron was a 5 year deal that was signed in 2012. I can't see any news where the venture was renewed/extended? Anyone have anything on Chevron still being involved? I see they sold some assets in Africa but didn't see Karoo mentioned.
GC, thanks for info. Gave me a chance to front run the masses. Most don't know this has happened. I reposted the article over at stockhouse. Hope you don't mind. Not sure many follow it over there. Getting a little bump today from those in the know. Thanks again.
T
PS looks like Fibonacci held at low .28 and covered the gap also. Thinking we should be ready for next leg up. Especially if company puts out official news on SA.
Just in case anyone is wondering why I posted the previous link. Most of the discussion lately has been about Australia.
http://www.falconoilandgas.com/karoo-basin-sa
One country down, one to go. This is another positive step in the right direction.
http://allafrica.com/stories/201703300708.html
The guy I mentioned starting Falcon is back, I believe.
Dear Subscriber,
24 March 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) (“Falcon”) was informed on 23 March 2017 that Sweetpea Petroleum Pty Ltd. is the beneficial owner of 80,625,170 common shares of Falcon (“Shares”), representing 8.69% of Falcon’s issued and outstanding Shares.
The press release can be found on our main website homepage, under the Investor Centre section selecting Press Releases Holdings in company.
Kind Regards,
Falcon Finance Team.
Filled my .28 toward end of day yesterday. Looks like gap was filled as well. Volume down today as I imagine buyers are wondering it we are going lower while sellers may want more. Gap fill was good to see and I would have some respect for Fibonacci if .28 holds.
T
Investors give Falcon Oil & Gas more credit for world class shale project in Australia
18:30 21 Mar 2017
Successful wells have so far proved up some 6.6 TCF of contingent resources – which amounts to 1.94 TCF net to Falcon.
drilling operations
Drilling is on pause, because of a moratorium on fracking
Exciting is building for investors in Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) with the shares jumping some 50% this week.
The market is seemingly giving the explorer more credit for its potentially huge shale project in Australia’s Northern Territory, with the shares rising to 25.6p from 18p in recent days.
In February, it was declared that the group’s acreage (some 16,000-square kms) contained a ‘best’ estimate of 496 trillion cubic feet (TCF) of gas. That world class resource equates to a massive 82bn barrels of oil potential.
Successful wells have so far proved up some 6.6 TCF of contingent resources – which amounts to 1.94 TCF net to Falcon.
The new resource figures immediately sent the shares sharply higher, though the group’s valuation is still tempered by uncertainty, because the drilling programme in Australia was put on hold due to a temporary moratorium on shale gas, whilst the authorities conduct a new evaluation of the emerging industry and its practices.
The moratorium on hydraulic fracturing – the necessary process to complete shale gas wells – was introduced by the NT Government on 14 September 2016 and subsequently an independent panel has been established to conduct an independent inquiry and report back to the government.
The panel is looking at all the issues such as the potential impact on the environment but also the potential economic impact.
New Australian proposal bodes well for Falcon
Proposals to lift a separate but similar ban on coal seam gas operations in Australia prompted the surge in Falcon’s shares this week.
Indeed, according to stockbroker WH Ireland, the proposal bodes well for Falcon’s planned development of Australian shale resources.
Australia’s deputy prime minister Barnaby Joyce is supporting proposals that would see the ban on goal seam gas drilling lifted, so long as landowners are given more of the royalties from subsequent gas production.
“In our opinion, this is a significant policy shift as the country seeks to avoid a looming gas shortage,” WH Ireland analyst Brendan Long said in a note.
“It is important to appreciate that the deputy PM is also agricultural minister and we therefore believe his thinking reflects that of Australia’s rural landowning community – the people who count.
“The general idea is to ensure that landholders benefit directly from gas production, which is an incentive that has proven very effective in the USA.”
Long added: “We believe this could pave the way for comparatively positive developments for shale gas developer in Australia, such as Falcon Oil & Gas.”
Zak Mir charts another 50% upside
Technical analyst Zak Mir reckons the Falcon Oil & Gas Ltd (LON:FOG) share price has room to add another 50% over the coming weeks.
“The shares now are very overbought with the RSI [Relative Strength Index] at 89 out of 100 so a cooling off would be expected back towards the low 20s,” explains Mir in the latest segment of the Proactive Investors Bulletin Board.
“At least while we hold above the 20p zone, the best case scenario target here over the next three to six months is as high as 45p.”
http://www.proactiveinvestors.co.uk/companies/news/175156/investors-give-falcon-oil-gas-more-credit-for-world-class-shale-project-in-australia-175156.html
More Resource Information:
http://www.proactiveinvestors.co.uk/companies/news/175054/new-coal-seam-gas-proposals-in-australia-bode-well-for-shale-broker-175054.html
Tried to use the Fibonacci numbers to my benefit and missed by half a penny. Just glanced at chart and figured a retracement to .28 would be 50% retracement. Oh well, see what tomorrow brings.
T
Thanks for info, GC.
T
Australian deputy prime minister Barnaby Joyce is a name to keep an eye om as it relates to FOLGF. He's supporting a repeal of the coal seam gas ban which I believe is another step in the right direction. I would read this article with a grain of salt as its written by a stock broker but still a few good nuggets relating to Falcon.
http://beforeitsnews.com/financial-markets/2017/03/new-coal-seam-gas-proposals-in-australia-bode-well-for-shale-broker-2911991.html
Checked the volume of FO on Canadian side and saw it was 4.7 million shares versus average daily volume of 1.55 mil. Very nice.
Also keep in mind that they have 7,000,000 acres in South Africa surrounded by Chevron's 30 million acres. I am looking for a 150-200 million JV with Chevron after licenses are granted. Exciting times ahead.
T
I like the volume. The name is getting out there. I know of one newsletter writer that was involved with Ultra Petroleum and the guy behind it that eventually started Falcon. He has been calling Falcon the stock of the century and, who knows, after ten years he may finally be right. His readers are big buck so I doubt that any own less than a couple hundred thousand shares. Hopefully, they keep on buying and telling their friends. Not sure the 10% owners are buying more since they have been dead in the water for so long and have so many shares, but one never knows. Main thing is to have patience as they work thru the moratorium and get the licensing for South Africa. This can play out all over again with SA. Hang in there all.
T
1 dollar sooner
Looking good this morning T, huge buys on the ask.
Awesome! I love natural gas..
IMO
Yes. And there is boatloads of it. Pre market has us in .30's already. See if it can maintain that.
T
I was stupid. Shale gas is for natural gas correct?
Yike.... Wait for me tomorrow pls.. Last high way back 2003 was .33. If we broke it then bluesky!
Big things coming..
IMO
My guess is that peeps are starting to realize that Falcon/Origin are sitting on one of the biggest shale plays in the world and we are only months away from a decision on the fracking moratorium. Once enough pockets get lined, including landowners, the sky's the limit.
I live in the Utica/Marcellus shale play and have seen first hand the transformation of an entire region due to shale. Farmers with acreage became millionaires overnight for sign up bonuses and royalties. I hope to see the same with this play.
You know why the price has been going up this week.
More reading as we sit back and wait. I liked this part..
"Origin Energy managed to drill a half dozen deep holes into the Beetaloo before a territory-wide moratorium came into effect earlier this year and found what they expected, there’s oceans of gas down there locked in the rock."
http://www.theadvocate.com.au/story/4538585/the-battle-for-beetaloo/?cs=2452
Pipeline approval a step in the right direction.
https://www.theguardian.com/environment/2017/mar/14/nt-gas-pipeline-approval-fracking-moratorium-question
Fuhgeddaboutit T...
Check out some of the quotes from this article.
Falcon and Origin have made an onshore discovery so big that I’m quite frankly having a hard time wrapping my head around it. This Beetaloo Basin play is perfect in the sense that it’s huge, and it’s in the middle of nowhere—the Aussie Outback.
For shareholders of these two companies (especially tiny Falcon) the discovery has the potential to be nothing short of a winning lottery ticket. And it’s not just that—millions of Aussie natgas consumers would benefit hugely as well, when you’re paying $25/GJ for energy.
https://oilandgas-investments.com/2017/latest-reports/this-country-is-caught-in-a-catch-22-with-energy/
Thanks for the good info, Green.
T
A good read in support of lifting the ban
A combination of green inspired state moratoria on gas exploration, coupled with growing gas export capacity, and politically motivated closures of coal plants, has created a looming shortfall in Australian energy supply.
https://www.google.com/amp/s/wattsupwiththat.com/2017/03/09/green-craziness-deepening-aussie-energy-crisis/amp/
Article and link to view public hearings via livestream, if anyone is interested.
http://www.ournaturaladvantage.com.au/blog/gas-industry-welcomes-nt-fracking-inquiry-hearings/
Not sure but I would think billion instead of trillion. It is a buttsworth, that is for sure. Then add in South Africa and you have ........
T
496 trillion cubic feet (TCF) equal about 88 Trillion Oil Barrel.
Is that correct?
IMO
The review process is underway, a positive outcome sends this thing flying imo.
THE scientific panel probing whether or not to allow fracking for shale gas in the Northern Territory has already held a meeting in Katherine.
Inquiry chair Justice Rachel Pepper met with various groups at the Government offices in First Street yesterday.
Justice Pepper told the Katherine Timestoday she wanted to demonstrate to everyone that her panel was impartial “and had definitely not made its mind up”.
She said she was aware the Prime Minister and other senior conservative politicians were strongly in favour of developing the NT’s unconventional gas potential.
“I don’t feel the pressure from that, not at all.
“I am a judge, it is my job to be impartial, they are just one of the parties involved in this,” she said.
The final report into unconventional gas mining will not be released until December, much later than most anti-fracking groups thought.
There will be two meetings in Katherine on Wednesday, March 7.
Justice Pepper agreed Katherine was a “hotspot” because of its proximity to extensive shale gas fields.
The scientific inquiry into hydraulic fracturing this week released an issues paper, ahead of its Territory wide community consultation program starting next month.
Hearings and community meetings will be held in Katherine on Wednesday, March 8.
People must register to attend the first meeting at Knotts Crossing from 10.30am and there will be a community meeting, which you don’t need to register for, at Katherine High School between 5-7pm.
The second round of community consultations will include a meeting at Mataranka on Thursday, March 23.
Justice Pepper said there was “a fair degree” of misinformation surrounding the debate, which focussed on shale gas deposits and not coal seam gas.
“The issues are controversial and people have strong views on this, we understand that,” she said.
http://www.katherinetimes.com.au/story/4486633/fracking-inquirys-katherine-surprise/
Falcon Oil & Gas gives more insights to massive discovery in Australia’s Northern Territory
12:00 18 Feb 2017
Here, we feature questions and answers that provide valuable insights to the Beetaloo shale project, and what investors can expect in the coming months.
Falcon share price has risen some 95%.
Falcon Oil & Gas Ltd (LON:FOG) this week revealed it is sitting on a potentially massive discovery in Australia’s Northern Territory.
On Wednesday, citing figures produced by Origin Energy, its partner in and operator of 16,000-square kilometres of licences, the gross best estimate of gas in place is put at a world-class 496 trillion cubic feet (TCF).
Converting that to oil equivalent, it stacks up to 82bn barrels of the black stuff.
This breakthrough has seen the Falcon share price rise some 95%.
Here, we feature questions and answers that provide valuable insights to the project, and what investors can expect in the coming months.
Falcon - Beetaloo discovery Q&A
Q: Wednesday’s press release was in two parts, can you tell us more about that?
A: The first part of our press release talks about the Discovery Report that was submitted to the Northern Territory Government, which was a requirement following the declaration of a discovery in October 2016.
The second part talks about the contingent resource numbers that Origin announced.
Q: Who prepared the Discovery Report?
A: The Discovery Report was prepared by the operator, Origin Energy Resources Limited on behalf of the Beetaloo Joint Venture.
Q: Why was the Discovery Report prepared and to whom was it submitted?
A: The Report was prepared in accordance with the requirements of Section 64 of the Northern Territory Petroleum Act (2016) and submitted to the NT Department of Primary Industry and Resources (DPIR).
It follows the Declaration of a Discovery submitted to the DPIR on the 7th October 2016.
Q: What are the key findings in the Discovery Report?
A: The most significant part of the Report is the estimated Original Gas in Place (OGIP).
Origin calculated a gross best estimate for OGIP of 496 TCF over an area of over 16,000 km2.
Q What work has Origin based the OGIP estimate on?
A: The JV drilled three vertical wells and one horizontal well over the past couple of years.
In addition, we carried out a hydraulic fracture stimulation on the horizontal well and then completed a 57day extended production test.
All the data from this drilling and production and testing program together with the previously acquired 1,000’s of km’s of seismic was used in determining the OGIP number.
Q: So this basically covers everything Falcon owns in the Beetaloo
A: Not at all. This OGIP number is based solely on the B shale within the middle Velkerri formation.
That is the shale formation that we carried out the extended production test on last year.
However, within the Middle Velkerri we have also identified an “A” and “C” shale.
And then there is the real potential of the Kyalla shale which has yet to be tested.
Q: Just how big is the project? 16,000 square kilometres sounds like a very large area.
A: It is equivalent to almost 4 million acres. Wales measures around 5m acres. Leinster is about 4.9m acres – so it’s a pretty big area alright.
Q: And just how big a project would 496 trillion cubic feet really be?
A: While the OGIP is a big number and has a BOE equivalent of 82 billion barrels of oil, we should look at what we think is technically recoverable.
Origin has taken a conservative view and has taken into account subsurface and surface utilisation factors to come up with a best estimate recovery factor of 16%.
Q: So that is still a pretty big number, in terms of a technically recoverable resource?
A: Yes, it certainly is. It works out to be around 85 TCF.
Q: It seems that Origin has gone further than the OGIP in the Discovery Report and has indicated a contingent gas resource
A: Yes, Origin’s own press release indicates 6.6 trillion cubic feet of gross contingent gas resources, around an area of just 1,968 square kilometres.
This is a very exciting development to be able to advance some of our resource categorisation to a contingent resource.
Q: The 6.6 TCF is just around 1,968 square kilometres - how was this area calculated?
A: This is just the area surrounding and adjacent to the Amungee NW-1H well – the well that we flow tested late last year for 57 days.
Q: Is it possible to extrapolate that number over the entire permit area of 16,000 square kilometre area?
A: It’s a bit too early to do that and we need a lot more wells drilled and extended production tests.
But based on the very encouraging results we got from the Beetaloo W-1 well 85km south of the Amungee well it is exciting.
Q: How does the Beetaloo compare to other shale plays, particularly in the US?
A: In Origin’s opinion and as set out in their own press release as one of the basis for determining a discovery the Marcellus and Barnett Shales in the USA are analogous, commercially productive fields that are similar to the Middle Velkerri B Shale reservoir.
Q: Remind us of the ownership structure, how much of the project does Falcon own?
A: Falcon farmed out 70% of this project to Origin and Sasol back in 2014 in exchange for them carrying Falcon through approximately $200m of capex.
Falcon still own 30% through our 98.1% Australian subsidiary.
Q: There’s currently a moratorium on hydraulic fracturing in the Northern Territory - what is the latest news on this?
A: The moratorium on hydraulic fracturing was introduced by the NT Government on 14 September 2016. Since then an independent Panel has been established to conduct an independent inquiry and report back to the Government.
They plan on publishing an “Issues Paper” before the end of February and then publish an interim report by the mid 2017 with a final report by the end of the year.
Q: Do you think that this discovery will influence the outcome of the moratorium?
A: The Independent panel has to look at all the issues such as the potential impact on the environment but also the potential economic impact.
This Discovery Report together with Origin’s contingent resource estimate will hopefully provide insight into the potential positive impact this unconventional resource may have on the economy of the NT and on Australia.
Q: What are the future plans for the joint venture? Will there be more drilling in 2017?
A: Pending the outcome of the moratorium currently in place, Origin has requested a suspension of all drilling operations with the DPIR and await their formal response to the request.
http://www.proactiveinvestors.co.uk/companies/news/173275/falcon-oil-gas-gives-more-insights-to-massive-discovery-in-australias-northern-territory-173275.html
i am accumulating it has 50 bagger potential at least
Interesting to say the least, I'm in for a few.
monster discovery FOLGF is the best stock
The gas they found is good enough 200 years
Yes. And they are sitting on a major find in South Africa as well.
T
FOLGF made one of the Biggest gas Discovery ever: 82bn barrels
"This is a colossal, monumental even, potential discovery," says oil analyst Malcolm Graham Wood, referring to the Falcon Oil & Gas (LON:FOG, CVE:FO) Northern Territory news today.
In a report, Origin Energy, its partner and operator of 16,000-square kilometres of licences, put the gross best estimate of gas in place at a world-class 496 trillion cubic feet (TCF).
Converting that to oil equivalent, it stacks up to 82bn barrels.
"Whichever number you look at, it's very substantial indeed," said Graham Wood.
http://www.proactiveinvestors.co.uk/companies/stocktube/6918/falcon-oil-gas-has-colossal-potential-gas-discovery-says-wood-6918.html
News from Northern Territory
Fracking Long Wait for Gas
Labor soft-pedals planned cuts
NT News - Friday, 17 Feb 2017 - Page 5
THE Federal Government is pleading for urgency on the fracking moratorium as the NT Treasurer said we would not see the benefits of onshore gas for a decade.
Nicole Manison has defended the Gunner Government’s decision to maintain a fracking ban after federal politicians including Resources Minister Senator Matt Canavan and Territory Senator Nigel Scullion called for them to “end this silly moratorium.”
Origin Energy has confirmed an onshore gas discovery five times the size of the Inpex fields.
A Deloittes Access economics report estimates onshore gas could create 6300 jobs and generate more than $960 million in revenue for the government .
Ms Manison said the Territory would not see the benefits of onshore gas for a decade if the fracking moratorium was lifted tomorrow.
“The impression if you allowed fracking tomorrow there would be immediate jobs growth and revenue to the government is wrong,” she said. “Even with a full blown fracking agenda then you won’t see those benefits until 2025.
“We’ve got the inquiry happening and from that we will make a decision as a government to go forward or have high regulation around it.”
Senator Canavan urged the Gunner Government to accelerate its fracking inquiry.
“The Northern Territory needs to create jobs as the Inpex construction winds down,” he said.
“It’s clear that gas projects could create jobs in the Territory . If the Northern Territory Government wants to create jobs it should conclude its inquiry as soon as possible.”
Senator Scullion said the Gunner Government was damaging confidence.
“More than 6000 jobs are at stake here,” he said.
“Other gas projects have stalled in the NT putting in doubt additional jobs that the Territory desperately needs. Mr Gunner must come to his senses and end this silly moratorium .
“The Gunner Government is trashing the Territory’s reputation with its gas moratorium and its ham-fisted handling of the economy.”
Followers
|
12
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
291
|
Created
|
05/09/08
|
Type
|
Free
|
Moderators |
Falcon Oil & Gas Ltd. is a global energy company that is focused on acquiring, exploring and developing large acreage positions of unconventional and conventional oil and gas resources. We focus on areas in politically and economically stable countries that are characterized by a high regional demand for energy with existing infrastructure allowing rapid delivery of oil and gas to market. Falcon has interests in approximately 12.3 million gross acres in three major exploration projects in Australia, South Africa and Hungary. | ||
![]() | ||
Our offices are in Dublin, Ireland and Budapest, Hungary. Shares of our company trade in Toronto on the TSX Venture Exchange (TSXV) under the ticker symbol 'FO', in London on the London Stock Exchange (AIM) under the ticker symbol 'FOG' and in Dublin on the Irish Stock Exchange (ESM) under the ticker symbol 'FAC' . |
Falcon Oil & Gas Ltd (LON:FOG) this week revealed it is sitting on a potentially massive discovery in Australia’s Northern Territory.
On Wednesday, citing figures produced by Origin Energy, its partner in and operator of 16,000-square kilometres of licences, the gross best estimate of gas in place is put at a world-class 496 trillion cubic feet (TCF).
Converting that to oil equivalent, it stacks up to 82bn barrels of the black stuff.
This breakthrough has seen the Falcon share price rise some 95%.
Here, we feature questions and answers that provide valuable insights to the project, and what investors can expect in the coming months.
Q: Wednesday’s press release was in two parts, can you tell us more about that?
A: The first part of our press release talks about the Discovery Report that was submitted to the Northern Territory Government, which was a requirement following the declaration of a discovery in October 2016.
The second part talks about the contingent resource numbers that Origin announced.
Q: Who prepared the Discovery Report?
A: The Discovery Report was prepared by the operator, Origin Energy Resources Limited on behalf of the Beetaloo Joint Venture.
Q: Why was the Discovery Report prepared and to whom was it submitted?
A: The Report was prepared in accordance with the requirements of Section 64 of the Northern Territory Petroleum Act (2016) and submitted to the NT Department of Primary Industry and Resources (DPIR).
It follows the Declaration of a Discovery submitted to the DPIR on the 7th October 2016.
Q: What are the key findings in the Discovery Report?
A: The most significant part of the Report is the estimated Original Gas in Place (OGIP).
Origin calculated a gross best estimate for OGIP of 496 TCF over an area of over 16,000 km2.
Q What work has Origin based the OGIP estimate on?
A: The JV drilled three vertical wells and one horizontal well over the past couple of years.
In addition, we carried out a hydraulic fracture stimulation on the horizontal well and then completed a 57day extended production test.
All the data from this drilling and production and testing program together with the previously acquired 1,000’s of km’s of seismic was used in determining the OGIP number.
Q: So this basically covers everything Falcon owns in the Beetaloo
A: Not at all. This OGIP number is based solely on the B shale within the middle Velkerri formation.
That is the shale formation that we carried out the extended production test on last year.
However, within the Middle Velkerri we have also identified an “A” and “C” shale.
And then there is the real potential of the Kyalla shale which has yet to be tested.
Q: Just how big is the project? 16,000 square kilometres sounds like a very large area.
A: It is equivalent to almost 4 million acres. Wales measures around 5m acres. Leinster is about 4.9m acres – so it’s a pretty big area alright.
Q: And just how big a project would 496 trillion cubic feet really be?
A: While the OGIP is a big number and has a BOE equivalent of 82 billion barrels of oil, we should look at what we think is technically recoverable.
Origin has taken a conservative view and has taken into account subsurface and surface utilisation factors to come up with a best estimate recovery factor of 16%.
Q: So that is still a pretty big number, in terms of a technically recoverable resource?
A: Yes, it certainly is. It works out to be around 85 TCF.
Q: It seems that Origin has gone further than the OGIP in the Discovery Report and has indicated a contingent gas resource
A: Yes, Origin’s own press release indicates 6.6 trillion cubic feet of gross contingent gas resources, around an area of just 1,968 square kilometres.
This is a very exciting development to be able to advance some of our resource categorisation to a contingent resource.
Q: The 6.6 TCF is just around 1,968 square kilometres - how was this area calculated?
A: This is just the area surrounding and adjacent to the Amungee NW-1H well – the well that we flow tested late last year for 57 days.
Q: Is it possible to extrapolate that number over the entire permit area of 16,000 square kilometre area?
A: It’s a bit too early to do that and we need a lot more wells drilled and extended production tests.
But based on the very encouraging results we got from the Beetaloo W-1 well 85km south of the Amungee well it is exciting.
Q: How does the Beetaloo compare to other shale plays, particularly in the US?
A: In Origin’s opinion and as set out in their own press release as one of the basis for determining a discovery the Marcellus and Barnett Shales in the USA are analogous, commercially productive fields that are similar to the Middle Velkerri B Shale reservoir.
Q: Remind us of the ownership structure, how much of the project does Falcon own?
A: Falcon farmed out 70% of this project to Origin and Sasol back in 2014 in exchange for them carrying Falcon through approximately $200m of capex.
Falcon still own 30% through our 98.1% Australian subsidiary.
Q: There’s currently a moratorium on hydraulic fracturing in the Northern Territory - what is the latest news on this?
A: The moratorium on hydraulic fracturing was introduced by the NT Government on 14 September 2016. Since then an independent Panel has been established to conduct an independent inquiry and report back to the Government.
They plan on publishing an “Issues Paper” before the end of February and then publish an interim report by the mid 2017 with a final report by the end of the year.
Q: Do you think that this discovery will influence the outcome of the moratorium?
A: The Independent panel has to look at all the issues such as the potential impact on the environment but also the potential economic impact.
This Discovery Report together with Origin’s contingent resource estimate will hopefully provide insight into the potential positive impact this unconventional resource may have on the economy of the NT and on Australia.
Q: What are the future plans for the joint venture? Will there be more drilling in 2017?
A: Pending the outcome of the moratorium currently in place, Origin has requested a suspension of all drilling operations with the DPIR and await their formal response to the request.
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |