An extract from the recent Falcon drilling program in the...

An extract from the recent Falcon drilling program in the Beetaloo basin.

Five intervals were tested in accordance with the program. The gathered information is still to be fully interpreted for planning future appraisal and exploration operations, however the following preliminary comments can be made at this time:
? Three of the five intervals flowed gas while still recovering significant amounts of frac fluid.
? The most positive results came from the Middle Velkerri shales where there was no indication of formation water being produced. The sustained gas rates ranged between 50 and 100 mscfpd (thousand standard cubic feet per day), gas gravities ranged from 0.64 to 0.70 and the lower interval also yielded condensate with an API gravity of 43 degrees. Importantly this showed that that these rocks can be
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stimulated and are over pressured. Both Velkerri intervals will now be considered candidates for future
testing, including horizontal drilling with multiple stimulation treatments to establish commerciality.
? The Lower Kyalla shale also produced gas to surface and will now be considered for further exploratory
investigation.
? Two separate intervals were perforated in the Moroak sandstones. They were not stimulated but rather
were conventional perforation tests, intended to find out if the rocks were gas-bearing and to provide technical information. Little to no commercial hydrocarbons were present. The test did however provide valuable rock property information as the Moroak is target of interest elsewhere in the Beetaloo Basin as a conventional play.
? The Upper Kyalla shale is oil-bearing in Shenandoah-1 but was not tested due to wellbore configuration.


http://falconoilandgas.com/PRESS%20RELEASES/2011%2011%2014%20Falcon%20announces%20completion%20of%20testing%20at%20Shenandoah-1.pdf