Source - SMW
Falcon Oil & Gas says drilling operations have successfully concluded on the Beetaloo W-1 well in Australia and results encountered are very  encouraging, with the well drilled to a total depth of 3,173 metres.

Preliminary evaluation of this vertical exploration well confirms:

- The continuation of the regionally pervasive Middle Velkerri formation     approximately 85 kilometres south of the Kalala S-1 and Amungee NW-1H     wells

-  A gross interval of over 570 metres shale gas sequence with net pay     exceeding 150 metres 

- Middle Velkerri shale falls in a highly prospective gas mature depth     window 

- Excellent gas shows at two prospective shale sweet spots at the top and     base of the Middle Velkerri formation, comparable to those encountered     during the 2015 drilling programme; 

- The Lower Kyalla formation, considered as a secondary shale target,     provided excellent gas shows within a 150 meter thick liquid rich     sequence. 

Conventional coring in the Lower Kyalla formation along with sidewall cores and extensive wireline logging in the  Middle Velkerri formation will enable a full-scale evaluation of prospectivity in the southern part of the  Beetaloo basin. As planned, the well was cased to TD and suspended.

Rig 185 has been released and demobilised.

Hydraulic stimulation of the horizontal Amungee NW-1H well

- Hydraulic stimulation of the horizontal Amungee NW-1H well has been     completed. 

- 11 hydraulic stimulation stages were performed over a 1,000 metre      horizontal section. 

-  The flow back of hydraulic stimulation fluids has commenced, and gas     should start flowing back to surface in the next week or two. 

Falcon also said noted the statement made by chief minister Michael Gunner, of the newly elected government in relation to  the introduction today of a moratorium on hydraulic fracturing in the Northern Territory, Australia. 

The chief  minster states that: "The moratorium on hydraulic fracturing of onshore unconventional reservoirs within the Northern Territory will  remain in place until government has thoroughly considered the recommendations of the (independent scientific)  inquiry."

The joint venture will work with the new Government to understand their moratorium policy and shall cooperate with  them as required during their scientific inquiry.

Chief executive Philip O'Quigley said: "The results of Beetaloo W-1 to date and the successful hydraulic stimulation of Amungee NW-1H represent further  positive steps for the exploration phase of the program. Encountering significant net pay in the Middle Velkerri  formation, 85 kilometres from our 2015 drilling programme along with significant net pay in the Lower Kyalla  formation is very encouraging. 

"Updates to the market shall be provided as the evaluation of Beetaloo W-1 is completed and a steady gas flow rate  is established on Amungee NW-1H. We will also provide further information on the moratorium as it becomes  available." 

At 9:26am: (LON:FOG) Falcon Oil  Gas share price was -0.25p at 5.25p