Falcon Oil & Gas Share Discussion Threads

[mirabeau] 26/2/2024 12:04

Tamboran records better-than-expected fracking results at Beetaloo

Some of the world’s biggest gas producers may look to the Northern Territory for their next big project after better-than-expected results from fracking in the Beetaloo Basin confirmed the commerciality of the resource, according to Tamboran Resources CEO Joel Riddle.

Mr Riddle said the results of the Shenandoah South well were good enough to fast-track a pilot project at the site, some 500 kilometres south-east of Darwin, with the aim of delivering gas to buyers in early 2026, depending on financing and approvals.

“The industry has really been waiting for this moment where we could see a commercial flow rate,” Mr Riddle said, pointing to the Beetaloo resource as one of the largest undeveloped gas resources in the world.

He added the limited development of large gas reserves in the United States, combined with the Biden administration’s recent pause on export approvals placed Tamboran’s project in a position to draw interest from potential partners in the next 18 months.

“We think this has all the ingredients to provide a lot of interesting strategic opportunities for the company to consider in the months and years ahead,” Mr Riddle said.

But the junior explorer faces an uphill task to secure the environmental approvals it needs and proceed into development amid staunch opposition from green groups and others due to the impact on emissions and worries about damage to land and water.

Tamboran, which switched its primary stock listing to the US last year amid lacklustre interest from domestic investors, has already fended off three legal challenges.

While Tamboran has a target to be net-zero emissions for direct emissions as soon as it starts commercial production of gas, the Environment Centre of NT said Australia’s greenhouse gas emissions could rise by up to 22 per cent if Beetaloo gas was developed.

NT Chief Minister Eva Lawler said the results “paint a prosperous picture for the Territory as we strive towards a $40 billion economy” based on its energy resources.

But that drew condemnation from activist group Central Australian Frack Free Alliance, which said it was “very worrying” to see Ms Lawler openly supporting the fracking plans when it should be impartially assessing whether the project should be approved.

Tamboran raised its estimate of 2C gas resources in the Beetaloo Basin to 2.1 trillion cubic feet after a successful production test over 30 days at Shenandoah South.

It raised its estimate for 1C resources, a more certain category but which still does not qualify as “reserves”, by 33 billion cubic feet to 284 bcf. The estimates have been certified by Netherland, Sewell & Associates. Six more wells are due to be drilled over 18 months.

“If we are successful in drilling those wells then some of the biggest companies in the world who are looking for their next growth project will definitely be interested in what we are doing here in the Beetaloo,” Mr Riddle said on a conference call.

Gas flowed in the well test at a normalised rate of 6.4 million cubic feet per day, more than 20 per cent more than expectations and at the highest rate ever recorded in the Beetaloo.

The company is targeting a final investment decision this year on the pilot plant, which would supply 40 million cubic feet a day of gas. A second phase would involve production of up to 1 billion cubic feet a day to the east coast, and involve the construction of a new pipeline. The focus would then switch to supplying a proposed LNG export project in the Northern Territory, targeted at 6.6 million tonnes a year.

Tamboran’s Australian-listed securities initially rose as much as 11 per cent but closed down 13.3 per cent at 19.5¢.

[loganair] 26/2/2024 10:59

I hope any cash call has a Rights Issue element in it.

[hermana3] 26/2/2024 10:08

Great set of results. Phil will surely be quizzed on a possible cash call in Q&A.

[ohisay] 26/2/2024 08:55

They do indeed have to do a cash raise at some point ..just $5m on the balance sheet end December 23.

[hydrogen1] 26/2/2024 08:48

Market Asleep at the wheel on this should be going 5-10x on this result. Massive news.
Fully validates the play across millions of acres

[shanig] 26/2/2024 08:21

Significant news...not sure the market has fully digested it yet.

[mirabeau] 26/2/2024 08:12

Cavendish



FALCON OIL & GAS* A Gamechanger for the Beetaloo

The SS1H well (Shenandoah South) has achieved an IP30 rate of 6.4MMscf/d (normalised over 1,000m), significantly exceeding pre-drill expectations and the 3.0MMscf/d required to progress the sanctioning of the proposed 40MMscf/d pilot project at Shenandoah South. A final investment decision is planned for mid-2024, with first gas in H1/26. The SS1H flow rate is the highest tested in the Beetaloo to date, and when combined with the geological data gathered to date, puts Shenandoah South on par with some of the most prolific regions of the Marcellus Basin – the world’s largest unconventional shale resource, which currently produces more than 20Bcf/d. - 40MMscf/d Pilot Project. The Pilot Project is expected to consist of six, 10,000ft horizontal wells drilled from the same well pad 4km to the north of the SS1H well. Two wells will be drilled and fracked in 2024, with a further four wells in 2025. A gas processing plant will be connected via infield gas gathering lines to a 35km export pipeline, connected to the Amadeus Gas Pipeline. Whilst it is expected that all six pilot project wells will be put into production by Q1/26, commerciality will be further proven by the end of 2024, once the initial two production wells are fracked and flow tested. -


Comparable to the Core US Natural Gas Basins. The SS1H 6.4MMscf/d normalised IP30 rate proves the deliverability of the Shenandoah South region and is comparable with that of the Marcellus in the US, where the average normalised IP30 rate in 2020 was 6.5MMscf/d.


- Sizeable Volumes. Beyond the initial decline, both the gas flow rate and wellhead pressure have remained consistent, suggesting a highly effective frack that is connected to a significant volume of gas.


- Significant North American Expertise in the Beetaloo. Liberty Energy, a leading North American energy services firm plans to import a modern frac fleet into the Beetaloo Basin in 2024 to support the stimulation campaign with industry-leading operational and subsurface engineering expertise for the Shenandoah South Pilot Project. Liberty plans to dedicate a frac fleet and crew to the Beetaloo to reduce delays in mobilising equipment to site and increasing completion efficiencies while reducing costs of future stimulation programmes. Liberty’s presence in the basin follows on from a similar arrangement with Helmerich & Payne (H&P), the largest drilling solutions provider in the US, whereby H&P imported a 2,000HP rig into the Beetaloo, which is expected to support a material reduction in drilling times and costs.


SE Asia to Facilitate 50% Increase in Global LNG Demand. Shell, in its LNG Outlook 2024, has forecast that global demand for LNG will rise by >50% by 2040 to 625-685mtpa (2023: 404mtpa). This increase will be primarily driven by China’s industrial decarbonisation and strengthening demand in other Asian countries, as several countries transition to LNG importers as domestic production declines. Falcon’s Beetaloo acreage is ideally situated in close proximity to the Darwin LNG hub, providing ready access to the high demand South-East Asian markets.

end

[glavey] 26/2/2024 07:29

Perfect for a placing?

[ohisay] 26/2/2024 03:35

The SS-1H well achieved an average 30-day initial production (IP30) flow rate of 3.2 million cubic feet per day (MMcf/d), normalised to 6.4 MMcf/d over 1,000 metres, surpassing pre-drill expectations.

“We are extremely excited to announce the results from the SS-1H well, which are the highest normalised rates achieved in the Beetaloo Basin to date,” managing director and CEO Joel Riddle continued.



That will do nicely ...

[hermana3] 24/2/2024 11:03

Big week coming up here as drill results likely and these ones are expected to please...

[hermana3] 22/2/2024 19:03

Will we get latest Beetaloo drill results before next Monday's Beetaloo Update and Q&A with the wee man?

[hermana3] 22/2/2024 07:04

Wow it glows even more than The Donald's fake tan.....

[mirabeau] 22/2/2024 05:59

Flare image - from Hotcopper TBN thread

This flare looks like a fireball -

[ohisay] 22/2/2024 03:08

TBN up 12% this morning ..

[hermana3] 19/2/2024 18:31

Phil should have good news for us next Monday for sure...

[hermana3] 08/2/2024 17:45

A wee bit of momentum building here...

[hermana3] 29/1/2024 18:38

Another months wait here!!!

[hermana3] 26/1/2024 18:08

The man with the lovely hair

(Joel Riddle) is waxing lyrical...

[mirabeau] 26/1/2024 08:36

Tamboran ’excited’; by imminent drilling results as Beetaloo development accelerates

Exclusive
By colin packham
2:58PM January 26, 2024

Tamboran Resources, which is plotting to become a major supplier of gas to Australia’s east coast and of LNG to regional neighbours, is excited about soon-to-be-released drilling results, the company’s chief executive said, hinting the Northern Territory resource project that has emerged as a lightning rod for opponents is edging closer to realisation.

Strong drilling results from Tamboran’s latest exploration campaign will bolster confidence that the Beetaloo region could emerge as a major source of gas in Australia, relieving tight domestic supplies. But it will exacerbate environmental opposition to unlocking the region for fossil fuel exploitation.
Tamboran last year began its initial drilling campaign, with chief executive Joel Riddle hinting that the market would be pleased by the round of results.

“We have well tests that we are going to be announcing in late February. We are encouraged and excited about the pending results of that well. This has clearly shown that the geology of the area that we have selected and targeting first development has the best resource potential in all of the Beetaloo. It has the biggest and highest pressure gaps in all of the Basin,” Mr Riddle said.

Strong results will bolster confidence within Tamboran and supporters of extracting gas from the NT.
Tamboran expects to produce first gas from drilling in 2025, which will be sold to Origin Energy under an existing agreement struck when Australia’s largest electricity and gas retailer sold the exploration rights.

But Tamboran has larger plans in place, which it said will position it as a major player in Australia’s domestic energy market.

Tamboran last year said it had entered into an agreement with APA Group to explore developing a pipeline to transport gas north to Darwin to be readied for LNG export, and east for use in the domestic market.

A Tamboran rig at the Shenandoah South field.

A final investment decision on the largest project has been earmarked for 2025 or 2026 – subject to the pilot drilling results.

Mr Riddle said the company expects a pipeline to be in place by late 2027 or early 2028, with first gas from the project expected around 2028.

Expanded production from Tamboran would be certainly be welcomed by Australia’s energy industry, which is increasingly alarmed by the prospect of a looming shortfall in supplies,

Australia’s east coast could experience a material shortfall in supplies as soon as 2025 as traditional sources run low. New developments are struggling to secure regulatory approvals amid local community opposition.

The Australian Consumer and Competition Commission has said that by 2034, the long-forecast shortfall in supplies on the east coast was expected to be as large as 300 petajoules, equating to more than half existing east coast demand.

This has stoked deep divisions about potential remedies. Some, such as billionaire Andrew Forrest, have proposed LNG import terminals that could see gas imported into the east coast, while others have said Australia should prioritise reducing gas usage.

Gas, however, fulfils a major role for Australia’s manufacturers, many of whom are unable to switch to renewables. Gas is also critical as a supplementally fuel source for renewable energy.

There is also uncertainty about gas from the NT. The Northern Territory last year gave the green light to fracking in the Beetaloo. The move has been heralded by supporters as potentially lucrative through royalties and safeguarding domestic supplies – but Tamboran has now emerged as a lightning rod for opponents.

Environmentalists have vowed to oppose new developments, and they have found success in delaying new projects through legal action.

The Central Australian Frack Free Alliance last year challenged the decision from the NT government to approve the drilling licence of Tamboran, arguing that the Minister failed to consider the environmental impacts of future gas projects.

Mr Riddle said he was extremely confident that Tamboran would prevail and maintain its licences.

“This is part of doing business in the new world that we live in,” Mr Riddle said.

“One of the core competencies that we have as a company is to defend these ludicrous lawsuits. I think for the modern 21st century oil and gas company to survive, you need to understand your opponent and also understand their tactics. We are getting down the learning curve quickly as to how to overcome the slaughter.”

end

[mirabeau] 26/1/2024 08:04

Tamboran ‘excited’ by Beetaloo progressToday 07:48

It's today's date

----

January 26, 2024

Mining & Energy

Tamboran ‘excited’ by Beetaloo progress

The latest drilling results from its Beetaloo development look set to boost Tamboran’s hopes of becoming a major gas supplier to Australia’s east coast.

By Colin Packham

[hermana3] 23/1/2024 18:58

Bloody Norah are we going to see this yoke take off at last???

[targatarga] 23/1/2024 11:54

Drilling must be going well!

[loganair] 18/1/2024 19:04

Buy on the rumour Sell on the news.

[hermana3] 18/1/2024 18:23

Inching up slowly in runup to drill results...

[hermana3] 19/12/2023 16:14

Yes not an easy ride on this one!!!