Falcon Oil & Gas Ltd. - Beetaloo drilling and planned stimulation update

Drilling Campaign - Falcon Oil & Gas Ltd provides an update on the Beetaloo Sub-basin drilling campaign, with two wells already drilled to target depth and a third well in progress [2][5] - The first two wells feature a 3,000m horizontal section (10,000-foot) and are drilled and cased, with plans to drill the production hole and horizontal section of the third well [5][6] - This campaign marks the first multi-well drilling program utilizing batch drilling in the Beetaloo Sub-basin, adhering to the planned timeline and budget [6] Stimulation and Gas Sales - A stimulation of up to 60 stages across the full 3,000m horizontal section of one of the drilled wells is planned, with flow testing expected for 30 days in early 2026 before gas sales commence in mid-2026 [6][15] - Following the wet season in Q2 2026, three additional wells, including one from the 2024 drilling campaign, are anticipated to be stimulated ahead of gas sales [6][15] - All wells in the Shenandoah South Pilot Project are expected to meet the contracted volume of 40 MMcf/d under the Gas Sales Agreement with the Northern Territory Government [6][15] Financial and Operational Aspects - Falcon Australia has opted to reduce its participating interest in the three wells drilled in 2025 to 0%, incurring no cost exposure [6] - The construction of the A$140 million Sturt Plateau Compression Facility has begun, with Falcon having no cost exposure in this construction [6] - The Northern Territory's first Beetaloo pipeline is under development, with APA Group investing A$70 million for the 37-kilometre Sturt Plateau Pipeline [6]