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Tamboran Webcast 6/27/23... https://webcast.openbriefing.com/tbn-ep-2023/player/?player_id=51632
Tamboran Capital Raise and Presentation: https://www2.asx.com.au/markets/company/tbn. Scroll down to announcements to download.
https://abnnewswire.net/lnk/809LP7U8. Sydney, June 27, 2023 AEST (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (TBNNY:OTCMKTS) has received binding commitments for a non-underwritten placement to new and existing shareholders to raise up to ~$53.2 million (before costs) at $0.18 per share. The price represents a 12.2 per cent discount to the closing price on Thursday, 22 June 2023 and 13.0 per cent discount to the 10-day VWAP for the period ending 22 June 2023.
In conjunction with the placement, Helmerich & Payne (NYSE:HP) and Tamboran have signed a binding Heads of Agreement (HOA) for a Convertible Note (CN) of ~US$9 million (~$13.2 million), which is subject to shareholder approval. The CN has a 5-year term and 5.5% interest rate (paidin-kind), with a conversion floor of $0.21 per share and ceiling of $0.30 per share.
The Company intends to launch a Share Purchase Plan (SPP) allowing existing shareholders to participate on the same terms as the placement at $0.18 per share of up ~$5 million. binding HOA to complete a CN with H&P for up to ~US$9 million (~$13.2 million). The note is expected to cover the cost of mobilisation of the H&P super spec FlexRig(R) Flex 3 Rig into Australia during H1 2023. This will allow Tamboran to focus on investing into drilling activities to mature resources and unlock gas in the Beetaloo Basin.
Institutional equity placement
Tamboran has received commitments for ~$53.2 million (pre-costs) in equity, to be raised through the issue of approximately 295.6 million new shares to new and existing investors. This includes a further equity investment of ~$14.7 million from Tamboran's largest shareholder, Sheffield Holdings, LP ("Sheffield").
The placement was conducted at an issue price of $0.180 per share ("Issue Price"), representing a discount of:
- 12.2% to Tamboran's last traded price on Thursday, 22 June 2023 of $0.205 per share.
- 13.0% to Tamboran's 10-day VWAP ended Thursday, 22 June 2023 of $0.207 per share.
The placement comprises two-tranches as follows:
- An unconditional placement of 288,995,504 New Shares to raise ~$52.0 million, to be issued without shareholder approval ("Tranche 1 Placement"). New Shares issued under the Tranche 1 Placement will be issued within the Tamboran's existing placement capacity in accordance with ASX Listing Rule 7.1 (184,623,835 shares) and 7.1A (104,371,669 shares); and
- A conditional placement of 6,638,886 New Shares to certain Tamboran directors to raise ~$1.2 million, subject to shareholder approval at a general meeting expected to be held in late July / early August 2023 ("Tranche 2 Placement").
Tamboran plans 3Q clean-up of the Amungee 2H well : https://www2.asx.com.au/markets/company/tbn. Scroll down to announcements.
Q&A..............................................................https://presentations.investormeetcompany.com/investor-meet-company/FALCON-OIL-GAS-LTD-Investor-Q-A-6ee261e712bcc85a44f8a969
Proactive:
Falcon Oil & Gas shares take hit as 'skin' inhibits well test in Beetaloo project
04:05 Thu 22 Jun 2023
Jamie Ashcroft
Falcon Oil & Gas Ltd
AIM:FOG
TSX-V:FO
Falcon Oil & Gas Ltd - Falcon Oil & Gas shares take hit as 'skin' inhibits well test in Beetaloo project
Falcon Oil & Gas Ltd (AIM:FOG, TSX-V:FO) shares dropped by nearly a third in Thursday’s early deals after a new production test update informed investors that the Amungee NW-2H well, drilled in December and fracked in March, has yet to establish an "uninhibited production rate".
The company, in a technical update via RNS, said that independent analysis has found “a potential skin” that’s inhibiting the flow of gas from the stimulated shale – nevertheless, the well has been flowing gas, at a rate of around 0.83mln cubic feet per day plus 50 barrels per day of water.
It noted that this is the sixth well to be drilled and stimulated in the Beetaloo, in Australia’s Northern Territory, and that the joint venture partners believe the test results to date “are not indicative of the underlying production potential” of the Amungee NW-1H well.
Analysis is continuing with the partners assessing how they can potentially clean-up potential skin along with any potential learnings for future operations, Falcon added. Any possible clean up work would be carried out in the third quarter, it noted.
Two further wells are currently under consideration in the project for the remainder of this year, though these plans have yet to be formally approved among the partners.
Chief executive Philip O’Quigley, meanwhile, highlighted Falcon’s financial position which he described as “very strong”, with the company holding US$16mln of cash whilst its costs are also currently carried by its partners.
“Initial flow rates demonstrated from the A2H well to date do not reflect the true deliverability of the shale in the Amungee region … we continue to learn from how the shale is stimulated and performs under varying conditions,” O’Quigley said in a statement.
“Further analysis of all available data together with any clean-up work will hopefully yield more positive interpretation of the results obtained to date.”
In London, Falcon shares were down 3.2p or 32%, changing hands at 6.8p on Thursday.
South Africa circles back to shale...https://www.zawya.com/en/economy/africa/safrica-circles-back-to-shale-gas-as-power-crisis-drags-rs2w8ut7. Falcon Oil & Gas and Bundu Gas and Oil Exploration, a majority-owned unit of Australia's Challenger Exploration, retained rights to apply for exploration licenses, Sayidini said.
"We believe this is the place to be with the best potential to make it commercially viable," Philip O'Quigley, Falcon's CEO told Reuters of the southern part of the basin, where the company is seeking a license. South Africa will auction at least 10 new onshore blocks for shale gas exploration in the environmentally sensitive Karoo region, a government official told Reuters, as the country eyes alternative energy sources to ease its worst-ever power crisis.
South Africa's first competitive auction for oil and gas resources, expected in 2024 or 2025 once legislation making provision for the bid round is passed, includes acreage once held by Shell.
"We are potentially looking at a minimum of about 10 shale gas blocks in the Karoo that will be released through competitive bidding," Bongani Sayidini, chief operating officer at the Petroleum Agency of South Africa (PASA) said.
PASA estimates the Karoo Basin holds around 209 trillion cubic feet (tcf) of technically recoverable shale gas resources, although a 2017 study by geologists at University of Johannesburg said this was probably 13 tcf, the lower end of estimates ranging between 13 tcf to 390 tcf.
Even 5 tcf would be enough for a 1,000 megawatt (MW) to 2,000 MW gas-fired power plant to supply electricity for up to 30 years, the Academy of Sciences of South Africa said in its Karoo shale gas action plan released last year.
It isn't clear how the cost would compare to existing coal fire power stations or the ever-cheaper wind and solar energies that are gradually replacing them.
Fracking in the Karoo Basin, a vast area covering more than half of South Africa's land surface, has been shelved for a decade because of resistance from environmental activists and farmers, and regulatory uncertainty.
Shell's 90,000 square kms is available after the oil major early last year withdrew an application to explore, Sayidini said.
Confirming the withdrawal, a Shell spokesperson said they are focussing upstream investment on fewer basins that align with global strategy and where Shell has competitive advantages.
New shale blocks offered will be smaller to increase participation, Sayidini said. It could take a decade or longer for the first gas output, if sufficient resources are found.
Upstream article 5/11/23 Empire energy...
In operation: the Silver City Drilling Rig 40 at the Carpentaria-2H well on EP 187 in Australia’s Northern Territory.Photo: EMPIRE ENERGY
Empire Energy eyes pilot production in newly-reopened Australian shale play
Final investment decision targeted in 2023 for Carpentaria gas production
11 May 2023 23:05 GMT UPDATED 11 May 2023 23:05 GMT
By Amanda Battersby in Singapore
Australia-listed junior Empire Energy is racing to step up a gear towards production at its Northern Territory assets now the territory’s government has finalised the Beetaloo regulatory framework.
Empire is progressing front-end engineering and design work, field development planning, Indigenous and regulatory approvals, gas sales and pipeline transportation negotiations for its proposed Carpentaria pilot project on EP 187, with the aim of taking the final investment decision later this year.
Northern Territory gas exploitation: ‘Best outcome’ or ‘rotten decision’? You decide
Read more
Independent reservoir engineering forecast production analysis indicates that three-kilometre horizontal wells in the Carpentaria area of EP 187 could ultimately deliver about 6 billion cubic feet of gas per well on a 50% recovery basis and about 8 Bcf on a 10% recovery basis, the operator said.
“This represents a potential upstream development cost of A$2 to A$3 per gigajoule in future development scenarios assuming A$15 million to A$20 million per well capital expenditure,” Empire said.
The company has engaged consultants Netherland, Sewell & Associates to prepare an updated resource assessment for its EP 187 asset, which is due before the end of June.
The regulatory framework put in place by the NT government is now among the most extensive and robust in the world and will allow the safe and sustainable development of the Beetaloo’s abundant natural gas resources, Empire said.
The company added that this gives management the confidence to accelerate its investment decision and planning processes as it moves towards pilot production.
“Building on the encouraging results of our exploration activity over the last four years, we look forward to submitting applications for all required approvals to enable us to move into gas production and the delivery of much-needed new gas supply to the Australian domestic market, and subsequently to increase liquefied natural gas exports, already the NT’s largest source of foreign income and a significant contributor to federal government revenues,” Empire managing director Alex Underwood said.
Last week, the NT government announced the finalisation of all 135 recommendations of the 2018 scientific inquiry into hydraulic fracturing in the territory chaired by Justice Rachel Pepper, effectively establishing a platform for approval of gas production in the Beetaloo sub-basin.
“After an extensive process of review and reform, industry participants and their investors now have certainty on how the NT government will regulate this vital industry,” Underwood added.
Meanwhile, in the western Beetaloo, Empire has secured a groundwater extraction licence to supply water for its planned 2D seismic survey, drilling and hydraulic stimulation activities in the gas discovery area within its wholly owned EP 167 and EP 168.
The company plans to soon resubmit its environment management plan for this work and, once its EMP and Land Access & Compensation Agreements are completed and approved, Empire will be able to acquire up to 376 line kilometres of 2D seismic and construct up to six well pads with horizontal stimulated wells.
Upstream article 5/11/23...
Onshore asset: Tanumbrini drilling on Beetaloo basin Block EP 161 in Northern Territory, Australia.Photo: TAMBORAN RESOURCES
Tamboran eyeing Beetaloo shale production as early as 2025
Most powerful land rig in Australia has arrived on location
11 May 2023 23:05 GMT UPDATED 11 May 2023 23:05 GMT
By Amanda Battersby in Singapore
Australian operator Tamboran Resources is looking to step up its investments in the Northern Territory’s Beetaloo basin, which hosts low carbon dioxide gas resources.
Hot on the heels of the NT government’s recent decision to reopen the door to exploitation of the basin’s giant onshore gas resources, Tamboran last week welcomed the arrival of the Helmerich & Payne (H&P) super spec FlexRig(R) Flex 3 rig to Australia — a drilling unit that the operator said would deliver “a step change in drilling efficiency in the Beetaloo basin”.
Northern Territory gas exploitation: ‘Best outcome’ or ‘rotten decision’? You decide
Read more
“Tamboran welcomes the Northern Territory government’s announcement that the 135 Pepper Inquiry recommendations have been fully implemented. This gives industry the certainty to import and invest in the latest shale technology and equipment, including H&P FlexRig(R) rig,” Tamboran chief executive Joel Riddle said.
“With the government’s completion of the Pepper Inquiry, Tamboran is planning on moving rapidly towards production as early as 2025.”
Once operational, this onshore drilling rig will be the most powerful rig in Australia, capable of drilling more than 3000-metre horizontal sections within the Mid Velkerri B shale in the higher quality, deeper shale formations of the Beetaloo.
“With Beetaloo gas containing approximately 3% to 4% reservoir carbon dioxide, we expect the reduction in Scope 1 and 2 emissions will be more cost efficient when compared to offshore gas fields that can hold up to 20% associated carbon dioxide,” Riddle said.
Tamboran has already initiated discussions with potential gas buyers for volumes of 200 to 300 terajoules of gas per day from later this decade.
“Contracting this gas will be critical in enabling us to approve our 1 billion cubic feet per day development plan,” he added.
Riddle said that through the company’s strategic alliance with H&P and the possibility of importing four more rigs into Australia, commercialisation of shale gas from the Beetaloo basin has the potential to reduce current energy costs with generally lower associated emissions than existing coal and higher reservoir CO2 gas fields.
Australia-listed Tamboran has its sights on developing low CO2 unconventional natural gas resources in the Beetaloo sub-basin within the Greater McArthur basin in NT.
The company’s key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197, which are located in the Beetaloo sub-basin.
“The development of the Beetaloo basin, one of the world’s largest undeveloped shale gas plays, has the potential to transform the Northern Territory,” Riddle said.
“It is anticipated that thousands of direct and indirect jobs will be created locally, and hundreds of millions of dollars in royalties will be paid to Traditional Owners and the Northern Territory government,” he added.
Australian Budget Supports Gas and Hydrogen Development
Wednesday, May 10, 2023
© Lukasz Z / Adobe Stock
Australia’s federal government has released its 2023 Budget, with the offshore industry saying it listened to industry concerns.
Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch said the new Future Gas Strategy showed the government recognised the urgent need for a strategy to secure new gas supply to avoid shortfalls in coming years.
“New gas supply is essential to keep the lights on, put downward pressure on prices and deliver substantial economic benefits in the transformation of our energy system for net zero,” McCulloch said. “The national strategy announced tonight is a response to independent reports and authorities warning of gas supply shortfalls and allows for a coordinated policy response.”
The Budget allocates A$2 billion to accelerate the development of low-carbon hydrogen in Australia and to catalyse clean energy industries. Australia already has the largest pipeline of renewable hydrogen projects in the world.
McCulloch said: “Low-carbon hydrogen has a critical role to play in reaching net zero, in particular in hard-to-abate industries and manufacturing. The oil and gas sector is pivotal in scaling up and rolling out low-carbon hydrogen in Australia and globally, with natural gas combined with carbon capture representing the most developed and lowest cost pathway to low-carbon hydrogen available today.”
The Budget also recognised the importance of CCUS, with a review of regulations to enable CCUS investment – as highlighted by APPEA in its 2023-24 Federal Budget Submission. However, the McCulloch says the Budget fell short of committing to a national CCUS roadmap in partnership with industry to provide the clear policy direction needed to promote Australia as a regional carbon storage leader. “Global momentum for CCUS is growing, and Australia must not miss the emissions reduction and economic opportunity of an emerging CCUS industry that creates new jobs and investment.”
APPEA also welcomed the review of environmental management regulations for offshore energy to provide clarity for major supply projects.
Tamboran targets July for HP rig:
Beetaloo developer to begin drilling within weeks as rig arrives
Colin PackhamEnergy and resources reporter
May 5, 2023 – 4.08pm
Tamboran Resources will begin drilling in the Beetaloo Basin in July after a large rig arrived from the United States, accelerating plans to capitalise on the Northern Territory’s approval of fracking, in what its chief executive described as “Australia’s greatest carbon emitting reduction opportunity”.
The NT government this week allowed fracking in the Beetaloo, in a decision the country’s oil and gas industry said would aid Australia’s $2 trillion economy and improve energy security but has ignited a wave of opposition from environmentalists and some Indigenous groups.
The Northern Territory has approved gas development in the Beetaloo Basin. Justin McManus
Tamboran said a large drilling rig from its partner Helmerich & Payne had arrived in Darwin to enable exploration.
“We expect to begin drilling with this rig in July,” Tamboran chief executive Joel Riddle told AFR Weekend.
“This rig will be the most powerful rig in Australia. It will be capable of drilling more than 3000 metre horizontal sections in the main shell plate. This is a big deal because the longer horizontal wells that we can drill with this rig, the more reserves that we can recover per well and it will be a real driver to bring down well costs and also improve the economics of the Beetaloo development.”
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Tamboran’s drilling is the first stage of the company’s plans in the Beetaloo. It expects to begin producing about 20TJ of gas a day in 2024. Should it secure a production licence from the NT government and fresh agreements with the local Indigenous landowners, Tamboran could expand production to about 100TJ a day.
Tamboran and other Beetaloo developers Empire Energy and Santos said developing in the region would improve domestic supplies, much needed amid forecasts for a looming east coast gas shortage.
It is, however, unclear how many volumes would remain in Australia or how shipments could be distributed to the east coast market, with existing export infrastructure located in Darwin.
The development of the industry could be extremely lucrative for the NT through royalties, but drilling is a lightning rod for opponents to any new gas developments in Australia. Opposition to gas among voters has risen steadily, but the fossil fuel industry insists gas can meet environmental and energy security goals.
“Environmentalists are looking to reduce carbon emissions in Australia, and around the world. If we are serious about that goal, then the biggest thing to move the needle on reduction of carbon emissions is Beetaloo,” Mr Riddle said.
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“The gas is 2 per cent to 3 per cent CO2, and this could replace coal generation, which has much higher carbon emissions. It is a no-brainer. The Beetaloo is Australia’s greatest carbon emitting reduction opportunity.”
The comments are likely to be rejected by environmentalists, who highlight methane emissions, and stress Australia has sufficient gas reserves to meet its own energy needs. But with rapid closures of coal power stations occurring, concern is growing about how to ensure sufficient supplies.
Renewable energy proponents insist Australia should focus on developing renewable energy generation and storage projects, which would negate the need for gas projects.
Grid-scale renewable energy projects and transmission lines have been beset by delays and cost blowouts. Smaller projects and rooftop solar generation continue to grow at pace, however.
Northern Territory clears way for fracking to begin in Beetaloo Basin
Environmental groups and scientists say move will have an unacceptable impact on the climate and have called for ban
Lisa Cox
Tue 2 May 2023 23.50 EDT
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The Northern Territory government says it is satisfied the recommendations of an independent inquiry into fracking have been met, clearing the way for gas production and the expansion of wells across the Beetaloo basin. Guessing the eco-terrorist will sue by the end of the day.
