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From next year: Tamboran Resources (ASX:TBN) to produce gas in NT
ASX News
Sonia Madigan
sonia.madigan@themarketherald.com.au
17 July 2023 08:45 (AEST)
Tamboran Resources (TBN) is focused on delivering production of gas next year from its Beetaloo Basin Gas Field in the Northern Territory.
The scale of Tamboran’s gas resource is such that it will be supplying not only the Northern Territory and Australia’s eastern states, but also exporting LNG internationally out of Darwin.
The company’s MD and CEO Joel Riddle said it had been estimated the entire Beetaloo Basin had about 500 trillion cubic feet (TCF) of prospective gas resources, which could be enough to supply Australia’s East Coast domestic market for 500 years.
The size and quality of the gas in the Beetaloo Basin has been compared to the Marcellus shale gas reservoir in the United States, one of the largest and most prolific shale gas plays in the world.
“Tamboran has approximately 150 TCF of net 2U prospective gas resources,” Mr Riddle said.
“The potential here is to supply Australia’s undersupplied eastern states and to export LNG internationally out of Darwin, via the Company’s recently announced 6.6 MTPA Northern Territory LNG development.”
Tamboran Resources secured two memorandums of understanding for offtake with BP (Singapore) and Shell (Eastern Trading) last month. Each will buy up to 2.2 million tonnes of LNG a year for two decades, once the company commences LNG production. It also has a Gas Sales Agreement for domestic gas sales with Origin Energy.
In a significant milestone towards developing its LNG capabilities, Tamboran recently secured a strategic site at Middle Arm Sustainability Development Precinct in Darwin. Tamboran has NT Government-granted exclusivity over 170 hectares of land within the site, which has potential to house a 6.6 million tonne per annum LNG project.
The enormous scale of the low reservoir CO2 natural gas Basin means that there’s potential to deliver large and scalable volumes – over the long term – to international markets.
“Our NTLNG development has potential to supply gas to the Asia Pacific region to support a transition from coal-fired power to gas and renewables,” Mr Riddle said.
“Importantly, gas will not only support energy transition through the replacement of coal, it will also play a key role in global food production, via manufacturing of urea and other fertilizers, as well as other industrial processes including glass and plastics used in future electric vehicles.
“We look forward to progressing our agreements with BP and Shell, which are two of the world’s largest LNG portfolio trading and energy companies and are providing important and credible counterparties for Tamboran as we progress financing discussions.
“We have also made a commitment to deliver early gas from the Beetaloo Basin to the domestic NT market. It’ll be the first step towards fulfilling our promise to provide remote communities – currently reliant on diesel for fuel and electricity generation – with alternative and affordable cleaner fuel.”
Tamboran’s selected APA Group (ASX:APA) as its preferred gas transmission pipeline partner. APA will build three pipelines to connect Tamboran’s Beetaloo Basin gas field to Darwin as well as to the East Coast domestic gas market. This work will commence over the next twelve months, with APA Group funding $10 million to progress approvals and studies.
Share Purchase Plan
Tamboran Resources is undertaking a $5 million SPP which closes later this month (July 27) to provide shareholders the opportunity to increase their holdings at the same 18-cent price as investors in the recently completed $53.2 million Placement. As part of that raise, Texan billionaire and third generation oil and gas investor, Bryan Sheffield, upped his stake by another $14.7 million to more than 15 per cent of Tamboran Resources.
“Our largest shareholder, shale entrepreneur Bryan Sheffield is well known in the US, having founded his own oil and gas company, Parsley Energy, which sold to Pioneer Natural Resources for more than US$8 billion,” Mr Riddle said.
“There are also a few additional long-term view, US-based, energy specialist funds that took part and they’re all the right kind of shareholders that Tamboran really needs – they represent a lot of smart money – these investors understand global gas markets.
“This really is a vote of confidence in the Beetaloo Basin’s resource and Tamboran’s potential.”
The funds will be used for further drilling at Tamboran’s Shenandoah South and Amungee well sites within the Beetaloo Basin.
“We are fully focused on delivering commercial flow rates from the Shenandoah South and Amungee areas,” Mr Riddle said.
“De-risking of these two areas provides us with optionality for initial production via mini-LNG as early as 2024, and the proposed pilot development will target first production by the end of 2025.”
Evaluation of the flow testing at the Tanumbirini 2H and 3H wells (Santos-operated EP161), in which Tamboran holds a 25 per cent interest, was undertaken over the first half of 2023. Independent modelling suggests a 20-year recovery of about 16.8 billion cubic feet (BCF) and 18.5 BCF respectively per well.
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").
proactive logo
Tamboran Resources inks MoU with energy giants BP and Shell for LNG offtake
19:34 Thu 22 Jun 2023
Phoebe Shields
Tamboran Resources Ltd
ASX:TBN
OTC:TBNRF
Tamboran Resources Ltd -
Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has signed non-binding memorandums of understanding (MoU) with global gas and oil companies BP and Shell for supply of up to 4.4 million tonnes per annum of liquid natural gas (LNG) from the proposed NTLNG project at Middle Arm.
More specifically, the two MoUs offer BP and Shell the opportunity to each purchase up to 2.2 million tonnes of LNG per year over a 20-year period.
TBN intends to source the gas from its Beetaloo Basin gas assets, once concept select studies, appraisal drilling and government approvals are secured and completed.
“Significant” support, accelerated discussions
“Securing these MoUs with BP and Shell is a significant step in progressing the proposed NTLNG development at Middle Arm,” Tamboran Resources managing director and CEO Joel Riddle said.
“BP and Shell are two of the world’s largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6 million tonnes per annum.
“We look forward to progressing our agreements with both parties, who have both shown significant support to Tamboran through the accelerated discussions, which further emphasise the importance of LNG demand growth in the Asia-Pacific region.”
Tamboran will pursue further discussions with both BP and Shell as front-end engineering and design (FEED) studies progress in 2024, with a 2025 target for formal execution of LNG sale and purchase agreements
Proactive:oops
Proactive:Falcon oil and gas.
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.
proactive logo
Tamboran Resources has exclusivity over compression and mini-LNG facilities in push for early Beetaloo production
20:14 Tue 20 Jun 2023
Ephrem Joseph
Tamboran Resources Ltd
ASX:TBN
OTC:TBNRF
Tamboran Resources Ltd -
Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has signed a framework agreement with the Clean Energy Fuels Australia (CEFA) group to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo Basin in Australia's Northern Territory.
This collaboration could fast-track gas production and reduce flaring from appraisal wells, aligning with the Northern Territory's regulations encouraging the "beneficial use of gas".
The new facilities could be operational as early as 2024, subject to obtaining the required regulatory and stakeholder approvals, as well as the joint venture's consent.
Affordable and cleaner fuel
Tamboran managing director and CEO Joel Riddle said: “Securing exclusivity over these facilities is a significant step towards achieving first production from the Beetaloo Basin and providing low reservoir CO2 gas to local communities and industry that are currently reliant on diesel for fuel and electricity generation.
"We have committed to the Northern Territory Government to deliver early gas from the Beetaloo Basin to the domestic NT market.
“This is the first step in fulfilling our promise to provide these remote communities with alternative affordable and cleaner fuel.”
Agreement terms
Under the terms of the agreement, the partnering organisations will actively collaborate to finalise a contract for the long-term use of the compression and gas conditioning facility.
In conjunction with the pilot development proposal, the exclusivity period is set to last until the end of 2023 when both parties anticipate transitioning into extended arrangements.
The existing compression facilities have the potential for expansion, increasing capacity to utilise the Amadeus Gas Pipeline (AGP) or the McArthur River Pipeline (MRP) based on availability.
In addition, Tamboran has secured four-month exclusivity over a mini-LNG facility.
This resource could serve remote Northern Territory communities or mining operations by the end of 2024, subject to necessary approvals.
Push towards cleaner fuels
The move to introduce LNG supply into the region is in line with the Federal Government's Clean Energy Regulations 'Emissions Reduction Guidelines'.
It presents a cleaner, more economical alternative to diesel for electricity generation and fuel in transport and mining industries, signifying an important step in transitioning towards cleaner energy sources.
This strategic agreement underscores the broader industry trend of leveraging cleaner fuels for various energy needs, setting a precedent for future collaborations in the energy sector.
https://www.tamboran.com/announcements/ Date Headline Price Sensitive
21 Jun 23 8:38 AM Tamboran enters framework agreement with CEFA facilities, including Lng and compression equipment and infrastructure. Targeting 2024.
ABC RURAL
Beetaloo Station owners lose Supreme Court appeal for fracking compensation
ABC Rural / By Daniel Fitzgerald
Posted Yesterday at 1:11am
A photo of a gas exploration project. The image is taken by a drone and shows a busy mine.
Seismic testing could form part of gas exploration on Beetaloo Station.(Supplied: Tamboran Resources Limited)
Northern Territory cattle station owners have lost a Supreme Court appeal to receive compensation for future damages from gas exploration in the Beetaloo Basin.
Key points:
Supreme Court rules pastoralist not owed compensation before gas exploration
Tamboran Resources will conduct seismic testing on Beetaloo Station
Pastoralists are entitled to compensation for wells drilled on their property
The owners of Beetaloo Station — the property from which the gas-rich basin gets its name — argued in court they should receive compensation from gas company Tamboran Resources' subsidiary Sweetpea Petroleum, over its proposal to clear land for seismic testing on the property.
Seismic exploration involves clearing corridors of vegetation in a grid format so heavy equipment can survey the geological structure beneath the ground.
Justice Peter Barr has upheld a NT Civil and Administrative Tribunal (NTCAT) decision in February 2022 which ruled Beetaloo Station's owners were not entitled to compensation before exploration activity had taken place.
The 1.05-million-hectare property, 750 kilometres south-east of Darwin, is owned by billionaire Brett Blundy and the Armstrong family, and is currently on the market, with expectations it could sell for more than $300 million.
an aerial photo of road trains lined up next to a set of cattle yards, with yellow grasslands behind.
Beetaloo Station covers more than a million hectares in the Barkly Tablelands.(Supplied: Colliers)
The pastoralist's lawyer told the court that station staff would need to monitor Sweetpea's clearing for weeds, increasing management costs.
Justice Barr ruled that compensation to the landholders could only be considered after the exploration activity had taken place.
"Damage to land or improvements may be temporary, and one would not normally expect compensation to be assessed until such time as Sweetpea had carried out the rehabilitation and remediation measures required," Justice Barr said in his judgement.
Court rules no loss in market value from exploration
The court heard evidence from witnesses from both parties about what impact the seismic testing could have on the market value of the property.
What does the NT fracking announcement mean?
The Northern Territory government says fracking can begin in the Beetaloo Basin, opening up the region to the gas industry and increasing Australia's future greenhouse gas emissions profile.
An aerial view of an exploration well in the Northern Territory's Beetaloo Basin on a patch of cleared land surrounded by bush
Read more
Beetaloo Station's expert witness said the clearing of the seismic lines would result in a decrease in the property's market value of $624,000.
However, Justice Barr agreed with Sweetpea's expert witness, property valuer Frank Peacocke, who said the exploration activity would not change the property's value.
Mr Peacoke said in his evidence "a potential purchaser of the subject property would not be successful in negotiating a discernible discount in the price payable for the property due to the existence of the previously impacted activity areas".
The Pepper Inquiry into fracking in the NT recommended pastoralists receive compensation for each well drilled on their property.
The NTCAT has ruled that the owners of neighbouring Tanumbirini Station should receive a minimum of $15,000 per gas well drilled.
Tamboran granted exclusivity at Middle Arm for Potential LNG
Sydney, June 9, 2023 AEST (ABN Newswire) - The Northern Territory Government has provided Tamboran Resources Limited (ASX:TBN) (TBNNY:OTCMKTS) exclusivity over 170-hectares (420-acres) on the Middle Arm Sustainable Development Precinct (Middle Arm) for a proposed LNG development, Northern Territory LNG (NTLNG). NTLNG is expected to be supported by low reservoir CO2 gas from the Beetaloo Basin.
The Middle Arm acreage has been allocated on a "Do Not Deal" basis for twelve-months, allowing Tamboran to progress a Concept Select phase for a proposed NTLNG development.
The site under exclusivity is expected to host a Liquefied Natural Gas (LNG) development with an initial capacity of 6.6 million tonnes of LNG per annum (MTPA), with the potential for expansion, subject to completion of the Concept Select study, successful Beetaloo appraisal drilling and flow testing, and Government approvals.
NTLNG represents the first fully integrated onshore LNG development in Northern Australia where upstream, midstream and downstream production and processing are based in the Northern Territory.
Tamboran is targeting first LNG production by 2030, with a near-term commitment to ensure Australia's Northern Territory and East Coast gas markets are well supplied.
FEED studies remain ongoing for the proposed 100 million standard cubic feet per day (mmscfd) domestic pilot development, with volumes contracted to Origin Energy for 10-years.
Tamboran Resources Limited Managing Director and Chief Executive Officer, Mr Joel Riddle, said:
"Securing a strategic site at Middle Arm is a significant milestone for Tamboran and the Beetaloo Basin. The enormous scale of the Basin means that the low reservoir CO2 natural gas has potential to deliver large and scalable volumes over the long term not only for Australia's East Coast gas market, but also to international markets.
"Providing affordable natural gas to Australia and our regional partners is anticipated to enable a reduced dependency on coal fired power generation, while delivering a significant reduction in global greenhouse gas emissions.
"Under the agreement, Tamboran will have exclusivity over a 170-hectare (420-acre) site on Middle Arm, which is expected to have capacity to host an initial 6.6 MTPA development. The exclusivity period will allow the Company to undertake a Concept Select phase for the proposed NT LNG development.
"If deemed commercial, Tamboran aims to sanction the proposed LNG development by 2026, with first volumes anticipated to commence by 2030.
"This is an exciting opportunity for Territorians, which not only has the potential to deliver significant jobs in Darwin and the Beetaloo Basin over the long term, but also deliver hundreds of millions of dollars in royalties to the Northern Territory Government and Native Title Holders, as well as benefits to the regional community and across the NT.
"Tamboran is also fully committed to working within the Middle Arm's Strategic Environmental Assessment (SEA) framework. Within the SEA framework, Tamboran will seek to maximise economic benefits locally and nationally and plans to avoid, mitigate and offset any social or environmental impacts from the development.
"We are excited to be working closely with the Northern Territory Government in realising their vision for the Middle Arm precinct and transformation of the NT's economy to reach $40 billion by 2030".
The Middle Arm Sustainable Development Precinct
The Middle Arm Sustainable Development Precinct is located on a peninsula south of Darwin that already hosts the Ichthys LNG and Darwin LNG developments. The Northern Territory is working with industry and the Australian Government to accelerate the development of Middle Arm into a globally competitive, sustainable development precinct for low emissions hydrocarbon and hydrogen production, carbon capture and storage and minerals processing. This Precinct is expected to require a large, secure, low reservoir CO2 natural gas supply.
The 2022/23 Federal Budget included $1.5 billion equity to support the construction of common user marine infrastructure within the Middle Arm Sustainable Development Precinct.
Tamboran have been allocated a "Do Not Deal" on the 170-hectare region in red (refer to image below*).
About Tamboran Resources Limited
Tamboran Resources LtdTamboran Resources Ltd (ASX:TBN) is a natural gas company that intends to play a constructive role in the global energy transition towards a lower carbon future by developing low CO2 unconventional natural gas resources in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran'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.
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