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Amungee 2H drilling completed...
Tamboran Resources completes drilling of Amungee 2H gas well ahead of schedule and within budget
09:36 Fri 23 Dec 2022
Phoebe Shields
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Tamboran Resources Ltd
ASX:TBN
Tamboran Resources Ltd - Tamboran Resources completes drilling of Amungee 2H ahead of schedule and within budget
Tamboran Resources Ltd (ASX:TBN) has successfully drilled the Amungee 2H (A2H) well to a total depth of 3,883 metres in the exploration permit 98 (EP 98) area of interest, with a horizontal component of 1,275 metres.
The company drilled the well in the most prospective zone within the Mid-Velkerri “B Shale” formation, where it encountered “significant” gas shows in line with pre-drill expectations.
The well was cased with 5 and a half inch casing, which Tamboran believes is optimal for placing a high intensity stimulation and on par with modern US unconventional drilling designs.
TBN intends to complete up to 24 stimulation stages within the Mid-Velkerri “B Shale”, expected to begin in the first quarter of 2023, subject to weather conditions.
Flow tests to determine gas deliverability
“We are pleased to have drilled and cased the A2H well ahead of budget and schedule,” Tamboran Resources managing director and CEO Joel Riddle said.
“The key objective of drilling, stimulating and flow testing the A2H well over the 1,275-metre horizontal section is to determine the gas deliverability of the Mid-Velkerri ‘B Shale’ in the deeper regions of the Beetaloo Basin.
“The larger casing diameter is expected to deliver sand and fluid at an increased rate to the perforations during the stimulation.
“This is a proven concept that has been known to deliver significantly higher production rates and Estimated Ultimate Recovery (EUR) than smaller casing diameter.
“The drilling operations have been performed safely, with no recordable injuries or reportable environmental incidents to date.
“This is a huge credit to our team, and our contractors, who have enabled a smooth transfer of operatorship since Tamboran’s acquisition of Origin’s Beetaloo assets in early November 2022.
“The location of the second well, which is targeted to be drilled in 2023, is under review. The site will be finalised following the completion of a comprehensive review of the data within the newly acquired EP 76/98/117 acreage.”
Tamboran took the well from spud to total depth in just 38 days for a total cost of $14.1 million, ahead of pre-drill design days and budget expectations.
The company is fully funding the drilling and flow testing of the A2H well, in accordance with the Stage 3 farm-in agreement between Tamboran and Falcon Oil & Gas Australia Limited.
https://finance.yahoo.com/news/tamboran-resources-limited-asx-tbn-201246162.html
Simply Wall St.
Tamboran Resources Limited (ASX:TBN) Could Be Less Than A Year Away From Profitability
Simply Wall St
Thu, December 1, 2022 at 2:12 PM·3 min read
We feel now is a pretty good time to analyse Tamboran Resources Limited's (ASX:TBN) business as it appears the company may be on the cusp of a considerable accomplishment. Tamboran Resources Limited, a natural gas company, focuses on developing unconventional gas resources in Australia. On 30 June 2022, the AU$368m market-cap company posted a loss of AU$11m for its most recent financial year. The most pressing concern for investors is Tamboran Resources' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Tamboran Resources
According to some industry analysts covering Tamboran Resources, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$16m in 2023. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of -32%,
earnings-per-share-growth
earnings-per-share-growth
We're not going to go through company-specific developments for Tamboran Resources given that this is a high-level summary, but, keep in mind that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
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One thing we’d like to point out is that Tamboran Resources has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Tamboran Resources which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Tamboran Resources, take a look at Tamboran Resources' company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
Historical Track Record: What has Tamboran Resources' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tamboran Resources' board and the CEO’s background.
This article is general in nature.
Hart Energy
‘Now Do Australia’: Shale Royalty
Nissa Darbonne
Tue, November 29, 2022 at 11:05 PM·4 min read
Presented by:
Oil and Gas Investor
Oil and Gas Investor
Third-generation wildcatter Bryan Sheffield founded Permian-focused Parsley Energy Inc. with a handful of vertical wells and turned the E&P in 12 years into a $7.6 billion sale in stock and debt assumption.
Dick Stoneburner, a multidecade rockstar, was part of taking Petrohawk Energy Corp. to the early days of the Haynesville, then the Eagle Ford, selling the E&P in eight years for $15.1 billion in cash and debt assumption.
The pair are now partners in Australian shale. And their combination is winning investment dollars—A$138 million already with A$98 million of that from private U.S. investors. (A$ = US$0.66.)
Stoneburner is chairman of Tamboran Resources Ltd., now the largest acreage holder (1.9 million) in Australia’s Beetaloo Basin. Sheffield, a private investor these days, is founder of Sheffield Holdings LP.
Here’s the deal: Origin Energy Ltd., an interest-owner with ConocoPhillips Co. in the Curtis Island, Queensland, Australia, LNG facility sought to add Australian shale E&P to its portfolio. But it opted this summer to exit that side of the business.
Enter Sheffield and Tamboran—and they’ve brought along more shale royalty too: Helmerich & Payne Inc.
The pair is closing the purchase of Origin’s 77.5% interest in three Beetaloo Basin permits (blocks 98, 117 and 76) for A$60 million, plus 5.5% royalties on future production.
They also agreed to a 10-year deal to sell up to 36.5 petajoules/year (36 Bcf/year) to Origin, which is a top Australian gas retailer, and an option to buy up to twice that amount per year for 10 years.
RELATED:
Bryan Sheffield Backs Australia’s Falcon Oil & Gas with $10 Million Investment
H&P has entered on the funding side of the deal—and is bringing The Iron. Born in 1920, H&P rolled out the new-tech FlexRig in 1998 that became the go-to among shale drillers.
H&P also kept its rigs hot-stacked in the Permian during the post-November 2014 downturn as Sheffield was rolling out new IPO capital to convert Parsley from a vertical Spraberry producer in the Midland Basin into a horizontal Wolfcamp developer.
In the deal for Origin’s interest, Tamboran’s A$98 million in private placements includes A$30 million from Sheffield and A$22 million from H&P.
With H&P, Tamboran signed a two-year contract for a super-spec FlexRig that will soon be getting to work on development drilling in the Mid-Velkerri B shale.
Joel Riddle, Tamboran CEO, told investors in a conference call, “They will be bringing in the first of five modern U.S. rigs that will be very critical for our ability to drop well costs and to drill very long horizontal wells in the Beetaloo moving forward.”
The laterals will eventually target up to 4,000 m (13,000 ft) in length.
H&P president and CEO John Lindsay said the Australian entry is toward rolling out the unconventional-rock FlexRigs abroad.
For now, though, an Australia-based rig operator will be drilling Tamboran’s horizontal Amungee 2H and 3H at an estimated combined cost of A$80 million. The frac jobs will be up to 20 stages in 1,000 m each.
Riddle said the target is to get well costs under A$20 million. “This H&P rig really will allow us to do that.”
Netherland Sewell & Associates Inc. (also U.S. oil and gas royalty) is Tamboran’s reserves auditor. It reported estimated prospective gas resources of some 147 Tcf and 2C contingent gas resources of 1.5 Tcf net to Tamboran upon closing with Origin.
Known to date about the Beetaloo property is that the Mid-Velkerri B has a good dry-gas system and data from tests across the holding show properties similar “to some of the highly successful shale gas plays in the United States,” Sheffield said in a statement.
“I believe this multistacked resource play has the potential to replicate the Permian and be one of the solutions to address the global energy crisis.”
In addition to the 50:50 deal with Tamboran on the Origin property, Sheffield has a 9.3% voting interest in Tamboran shares.
Ireland-based Falcon Oil & Gas Ltd., which holds 22.5% interest in Origin’s Beetaloo blocks, waived first dibs on the Origin buyout, letting it go to Tamboran and Sheffield instead.
The pass sounds smartly like what one might say if a couple of Warren Buffett’s want to turn your unimproved property into multibilliondollar real estate for you: “Sure. Go ahead.”
Upstream 11/22/2022 Plans for 2023:
22 November 2022 1:45 GMT UPDATED 22 November 2022 4:53 GMT
By Russell Searancke in Wellington
The American-backed Australian shale gas company Tamboran Resources has outlined its pathway to booking a very large proven plus probable (2P) gas reserve by 2025 in the Beetaloo sub-basin, onshore Australia.
The company on Monday told its shareholders its immediate goals are the sanctioning of a pilot development project in Block EP 98 in 2023 and the potential booking of 5 trillion cubic feet of 2P gas reserves by 2025.
American horsepower set to arrive in Australia's Beetaloo sub-basin shale play
Read more
"We will drill, fracture stimulate and flow test two wells within EP 98. These wells aim to demonstrate the commerciality of the acreage and de-risk the company’s commitment to sanctioning of the 100 terajoule (94 million cubic feet) per day pilot development with our JV partners Daly Waters Energy and Falcon Oil & Gas Australia," said Tamboran chief executive Joel Riddle.
Riddle said that the company is progressing toward front-end engineering and design for the pilot development, including working with regulators and stakeholders on land access and pipeline corridors.
"We are working closely with Helmerich and Payne to import the first super-spec FlexRig into Australia. This rig is crucial to the Beetaloo, being the only rig capable of drilling the more than 3000-metre horizontal sections within the Mid-Velkerri 'B Shale. "
The rig is expected to be operational in Australia by mid-2023.
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"Finally, we will continue to secure strategic partners that will aid Tamboran in accelerating the commercialisation of the Beetaloo basin."
The company is currently drilling its second well of the year, the Amungee-2H well, which will be drilled with a 1000-metre horizontal section within the Mid-Velkerri 'B Shale' and fracture stimulated with 20 stages.
Riddle said the stimulation programme will be the first within the basin designed with true US-style completions, including 5-½ inch casing, which are important for allowing increased proppant to be flowed into the formation, improving flow rate efficiency.
Beetaloo bombshell: Aussie operator exits high-potential shale gas play
Read more
Tamboran's recent acquisition of Origin Energy’s Beetaloo basin interests has elevated Tamboran to be the leading company in the region in terms of an acreage position.
The company has the support of two US investors with extensive experience of the US shale gas sector - the founder and chief executive of US exploration & production company Parsley Energy, Bryan Sheffield; and the US onshore drilling company Helmerich & Payne.
NT resource news:
Tamboran Resources to stake a larger claim in natural gas assets in the Beetaloo Sub-basin
Tamboran Resources Ltd (TBN) will broaden its activities in the Beetaloo Sub-basin in the Territory after raising $3.4 million in a share purchase plan (SPP) at $0.21 per share. Tamboran’s share purchase plan follows a recent two-tranche private placement, which saw around 657.2 million shares issued at the same price as the SPP to raise roughly A$98.8 million.
The company intends to buy Origin Energy Ltd (ORG)’s 77.5 per cent interest in three Beetaloo Basin permits in the Territory through a joint venture entity. The acquisition will make Tamboran the largest acreage holder in the Beetaloo Basin, with roughly 1.9 million net prospective acres, boosting the company’s estimated net 2C contingent gas resources to around 270 per cent.
Empire spuds new Beetaloo gas well
Empire Energy will begin drilling its Carpentaria-3H well in the Territory’s Beetaloo Sub-basin.
Schlumberger, one of the world’s largest drilling contractors, will be managing the drilling program for Empire’s Carpentaria-3H project. Schlumberger will primarily sink a vertical bore that shifts horizontally at depth to penetrate a gas-bearing shale unit, a method of extracting a formation’s resources and is frequently used in the extraction of gas in the Beetaloo.
Once complete, Empire will be running a fracking program to release and extract the formation’s gas, which entails drilling into a resource-bearing formation and injecting a high-pressure cocktail of water, sand and chemicals that create small fissures in the target zone that allow the hydrocarbons to escape to the surface.
Meanwhile, development works at Empire’s Carpentaria-2H have resulted in a 51-day average production rate of 2.2 million standard cubic feet or MMCF of gas per day. https://ntindependent.com.au/nt-resource-news-october-24/
For All ASX announcements: https://www2.asx.com.au/markets/company/tbn
Quarterly report highlights...:
Tamboran Resources Limited (ASX:TBN) September 2022 Quarterly Activities Report
Sydney, Oct 21, 2022 AEST (ABN Newswire)
Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNRF) Managing Director and CEO, Joel Riddle said: "The first quarter of financial year 2023 has been a transformational period for Tamboran, having announced the acquisition of Origin Energy's Beetaloo Basin assets. On completion, the acquisition will provide Tamboran with a dominant acreage position and sets the Company up to control the pace of development of the Beetaloo.
"We also announced IP30 rates from the two Tanumbirini wells in EP 161, which have shown a significant improvement in performance since the installation of production tubing. The rates from the two wells exceed what we believe to be the commerciality threshold for our acreage in the Beetaloo Basin, and further support the development of this nationally significant, low-CO2 natural gas resource.
"In addition, our team has completed a significant milestone with the drilling of the M1V well. I am extremely proud of our team and contractors in delivering Tamboran's first operated well in the Beetaloo. This included a 54 per cent reduction in drill time relative to comparable wells drilled in the Basin, which is a significant accomplishment.
"We look forward to continuing to validate our operational capabilities in unconventional drilling with the A2H and A3H wells in the newly acquired EP 98 acreage. The A2H well is expected to commence drilling by the end of October 2022."
Highlights for the Quarter:
- Tamboran and Bryan Sheffield (Sheffield) to acquire Origin Energy's (Origin) 77.5 per cent interest in three Beetaloo Basin permits (EPs 98, 117 and 76) through a 50:50 joint venture (the JV) for an upfront cash consideration of $60 million and a future production royalty. Completion subject to final regulatory approvals, expected in early November 2022.
- Binding 10-year Gas Sales Agreement (GSA) for up to 36.5 PJ per annum (18.3 PJ per annum net to Tamboran) signed between the JV and Origin, Australia's leading energy retailer.
- Two tranche, $138 million equity placement (before costs) at $0.21 per share to new and existing shareholders launched, with first tranche completed. Funds to support Tamboran's acquisition of Origin's Beetaloo assets and drilling operations, including Maverick 1V (M1V), Amungee 2H (A2H) and Amungee 3H (A3H).
- Following tubing installation, average 30-day (IP30) flow rates from Tanumbirini 2H (T2H) and 3H (T3H) of 2.1 and 3.1 million standard cubic feet per day (mmscfd) achieved, normalised at 3.3 and 5.2 mmscfd over 1,000-metres lateral length, respectively. These rates exceed what Tamboran believes to be the commerciality threshold for a 1,000-metre horizontal well.
- Entered a Strategic Alliance and secured a $22 million equity investment from Helmerich & Payne, Inc. (H&P), the largest drilling solutions provider in the US. Tamboran and H&P have finalised a drilling contract for a super-spec FlexRig(R) over a two-year term.
- The M1V well commenced drilling in Tamboran's 100 per cent owned and operated EP 136 permit in mid-September 2022. The well safely reached total depth of 3,050 metres in 18.3 days, 54 per cent faster than offset wells deeper than 2,500-metres.
- Strong balance sheet with $26.7 million cash balance at 30 September 2022. A further $98.8 million is expected to be received following a shareholder vote on the second tranche of the equity raising at a General Meeting on Tuesday 25 October 2022.
*To view the Full Quarterly Report, please visit:
https://abnnewswire.net/lnk/9992S9V8
About Tamboran Resources Limited
Tamboran 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.
Sydney morning herald article 10/17/22: https://www.smh.com.au/business/companies/the-texas-billionaire-betting-big-on-australian-gas-20221014-p5bpvk.html#amp_tf=From%20%251%24s&aoh=16659274890076&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.smh.com.au%2Fbusiness%2Fcompanies%2Fthe-texas-billionaire-betting-big-on-australian-gas-20221014-p5bpvk.html
Northern territory carbon credits...: https://www.abc.net.au/news/2022-10-12/nt-international-carbon-credits-beetaloo/101502548#amp_tf=From%20%251%24s&aoh=16656096215822&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.abc.net.au%2Fnews%2F2022-10-12%2Fnt-international-carbon-credits-beetaloo%2F101502548
Aug 2022 upstream article: Australia’s search for world-class shale gas resource remains in focus
Several drilling and flow test operations are under way in the Beetaloo basin
15 August 2022 2:34 GMT UPDATED 17 August 2022 14:58 GMT
By Russell Searancke in Wellington
Australia’s attempt to prove up a world-class shale gas resource in the Beetaloo basin is ongoing with operators Empire Energy and Santos returning positive flow test results from their current wells.
Santos has an ongoing two-well operation at the Tanumbirini field where its project partner on Monday said the latest flow test rates on the 2H and 3H wells have increased to 7.4 million cubic feet per day of gas and 4.3 MMcfd following the installation of production tubing.
The flow rates are much higher than corresponding rates in January 2022.
Australia's gas-fired recovery starts with Beetaloo sub-basin success
Read more
The plan is to continue flow testing the 2H and 3H wells over the coming months to gather more information on the Mid-Velkerri B Shale formation, said co-venturer Tamboran Resources.
“The increase in flow rates in the T2H and T3H wells highlights the significant potential of our ‘core’ acreage position within the Beetaloo sub-basin, which benefits from the higher pressures associated with the deeper reservoir found in the region,” Tamboran chief executive Joel Riddle said.
“Significantly, the flow rates achieved from the T3H well are the highest sustained rates from a single well over an eight-day flow test within the basin to date, despite the well not being optimally stimulated.”
Empire’s results
Empire Energy has also reported “strong initial” gas flow rates from its Carpentaria-2H well of 2.6 MMcfd over the first 91 hours of flow testing with minimal decline in gas flow rate over this period. Flow testing is continuing.
Data being collected and analysed by Empire’s technical team will be incorporated into the completion design for the upcoming Carpentaria-3H well.
Empire said the early results are providing management with enhanced confidence that the project will be commercially viable.
Empire managing director Alex Underwood said: “This is an outstanding result for Empire and our shareholders and a historic moment in the advancement of the Beetaloo basin.
“As previously announced, the primary goal of the Carpentaria-2H stimulation and flow testing programme is not to achieve maximum flow rates but rather to assess which of the four fluid systems trialed — crosslink, high-viscosity friction reduce, hybrid and slickwater — is likely to provide the best production performance in the Beetaloo basin’s shales and to optimise our completion methodology.”
Other operators
A joint venture between Origin Energy and Falcon Oil & Gas is also active in the Beetaloo, while Tamboran is preparing to spud its first operated exploration well.
Meanwhile, Origin’s and Falcon’s activities on the Amungee field in the Beetaloo in 2022 are aimed at supporting a multi-well pilot programme in 2023 and 2024.
Committed to gas: Australian government unveils plan to shore up supplies until at least 2040
Read more
Elsewhere, Tamboran, has received the final regulatory approval to drill the Maverick-1H (M1H) well, starting in early next month.
The drilling rig Ensign 970 is currently being mobilised to the M1H well site.
Riddle added: “We are pleased to obtain the final approval allowing us to commence drilling activities of our high-impact M1H well within our 100% owned and operated EP 136 permit.
“The Environment Management Plan approves Tamboran to drill up to seven wells within the permit, also allowing for the drilling of the Maverick 2H and 3H wells currently planned for calendar year 2023.”
Managing director Riddle speakes in front of senate environment committee: https://www.tamboran.com/tamborans-managing-director-and-chief-executive-officer-attends-senate-standing-committees-on-environment-and-communications/
Letter of Intent with Falcon oil and gas in regards to FIA and LOI with Tamboran: https://finance.yahoo.com/news/falcon-oil-gas-ltd-binding-060000753.html
https://seekingalpha.com/article/4504434-beetaloo-shale-australia-marcellus-play-falcon-origin-focus. The Emerging Beetaloo Shale: Why It May Be Australia's Marcellus Play; Falcon, Origin In Focus
Apr. 28, 2022 9:30 AM ETFalcon Oil & Gas Ltd. (FOLGF), OGFGF, FO:CAEEGUF, IPXHF, IPXHY, OGFGY, STOSF, TBNRF25 Comments
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Summary
The Beetaloo Basin in NT, Australia, is emerging as the most exciting shale gas province in the world. It is poised to become Australia's Marcellus shale play.
In this article, I first presented a review of the Beetaloo shale gas play: what it is, and why it has enormous potential.
I next analyzed the competitive landscape in Beetaloo, and then went on to name what stocks I believe would give investors an advantageous exposure to this possibly generational opportunity.
I do much more than just articles at The Natural Resources Hub: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Shale gas
amandine45/iStock via Getty Images
Shale Gas Development
According to EIA, worldwide there are 95 basins in 41 countries that are prospective of unconventional petroleum, containing some 345 billion barrels of shale oil and 7,299 Tcf of shale gas in technically recoverable shale resources (Fig. 1).
A map of basins with assessed shale oil and shale gas formations.
Fig. 1. A map of basins with assessed shale oil and shale gas formations. (U.S. EIA)
So far, shale gas development has taken off only in the U.S. with some limited success in the Vaca Muerta shale play in the Neuquen Basin, Argentina. Why is shale development so limited? I believe there are a number of reasons:
Firstly, in the U.S. the landowner has mineral rights to the subsurface hydrocarbon resources, which promotes the extraction of oil and gas therein. Elsewhere in the world, governments own subsurface mineral rights.
Secondly, the U.S. regulators provide a comparably friendly business environment for oil companies, with political stability, amicable fiscal regime, legal certainty, and a clear pathway to permitting, which collectively lead to a greatly-reduced above-ground risk.
Thirdly, the U.S. has a well-developed infrastructure network (pipelines, storages, terminals, and refineries) to handle the extraction and transportation of hydrocarbons, which saves E&P companies large up-front investments.
Fourthly, the U.S. shale basins have the advantage of being proximal to the world's largest natural gas market.
Lastly, the U.S. oil industry has unparalleled access to capital and technical expertise.
Beetaloo And Shale Gas Development
Outside of the U.S., it seems that Australia comes close to matching the above conditions, and that its Beetaloo Basin in the Northern Territory (aka, NT) is indeed emerging as the new darling for shale gas development.
Petroleum rights and licenses
In Australia, subsurface resources belong to the Crown. This means that the NT government owns all reserves of petroleum onshore and in coastal waters. In return for the right to extract petroleum, licensees pay the NT government royalties on production at 10% of gross value at the wellhead.
There are three types of petroleum titles: petroleum exploration permit, petroleum production license, and petroleum retention license or lease. An oil company will need to pay landholders for land access for E&P activities, under certain land access guidelines.
The NT government suspended hydraulic fracturing operations in September 2016, citing environmental damage concerns. The moratorium was lifted in April 2018, following an independent scientific inquiry.
'Gas-fired recovery of Australia'
As Australia emerged from the Covid-19 pandemic, the federal government rolled out the plan of gas-fired recovery in September 2020, aiming to unlock gas supply, deliver an efficient pipeline and transportation market, and empower gas customers.
To encourage the private sector to step up and make timely investments in the gas market, the government allocated A$28.3 million for E&P projects in five key gas basins, including the Beetaloo Basin.
Beetaloo Strategic Basin Plan
Under the plan of 'gas-fired recovery', the Minister for Resources, Water and Northern Australia announced in January 2021 the Beetaloo Strategic Basin Plan, believing Beetaloo has the potential to be a world-class gas province and become a supplier to a variety of gas markets.
The plan provided >A$220 million in new funding as part of the 2020-21 federal budget to support Beetaloo development. Some A$50 million was committed over two years from 2021–22 to 2022–23 for the Beetaloo Cooperative Drilling Program to support exploration activity, which will see ~10 additional wells co-funded by private enterprises.
The remote Beetaloo region has limited existing infrastructure to support development. The region requires significant investment in upgraded roads, rail, pipelines, waste and medical assets, to be ready for gas development. The government is committing A$174 million for the NT gas industry roads upgrades.
Gas infrastructure
Three key gas pipelines cross or lie near the Beetaloo region (Fig. 2):
The Amadeus Gas Pipeline links Alice Springs to Darwin;
The McArthur River Gas Pipeline links the McArthur River mine to the Amadeus Gas Pipeline;
The Northern Gas Pipeline passes to the south of the Beetaloo and links the Amadeus Gas Pipeline to the Carpentaria Gas Pipeline at Mt Isa, which provides a link to the east coast market, despite the limited capacity.
These pipelines make it possible for Beetaloo shale gas to access, among a variety of commercialization options, the positive pricing dynamics of the east coast market or the Northeast Asian market via onshore LNG processing terminals at Darwin, including Ichthys (operating since 2018, with a capacity of 8.9 Mtpa of LNG and 1.65 Mtpa of LPG, and 100,000 b/d condensate) and Darwin (sale of LNG since 2006, 3.7 Mtpa).
A map showing infrastructure in the Beetaloo Basin and surrounding areas, NT, Australia.
Fig. 2. A map showing infrastructure in the Beetaloo Basin and surrounding areas, NT, Australia. (Australian Ministry for Resources, Water and Northern Australia)
Beetaloo Geological Potential
The 28,000 sq-km Beetaloo Basin is a structural component of the greater McArthur Basin. The Beetaloo Basin mainly consists of a sequence of ~3,000m (locally up to 5,000m) mudstone and sandstone formations called the Roper Group that was deposited in Proterozoic between 1,500 million and 1,430 million years ago (Fig. 3).
The gas-bearing intervals are primarily the Velkerri shale (including the Velkerri A, Intra A-B, B and C shale) and secondarily Kyalla shale, giving Beetaloo a multi-stacked pay potential (Fig. 4).
The Beetaloo Basin, shown with the depth to the top of the Middle Velkerri.
Fig. 3. The Beetaloo Basin, shown with the depth to the top of the Middle Velkerri. (Tamboran Resources)
Stratigraphy of the Beetaloo Basin, NT, Australia, especially the gas-prone the Velkerri Formation.
Fig. 4. Stratigraphy of the Beetaloo Basin, NT, Australia, especially the gas-prone the Velkerri Formation. (PESA News)
Geologically, Beetaloo is analogous to the Marcellus shale gas play in the U.S. (Fig. 5). Although estimates of gas resource in the basin vary widely due to limited exploration, Beetaloo is viewed as Australia’s largest undeveloped gas resource province.
The USGS estimated in 2018 undiscovered, technically recoverable mean resources of 429 MMbbl of continuous oil and 8 Tcf of continuous gas in the Beetaloo Basin.
The NT government estimates that there are over 200 Tcf of gas in place in Beetaloo in the NT Geological Survey Record 2017-003. At a conservative recovery rate of 10%, the basin has some 20 Tcf recoverable. As a reference, Australia consumed 1.44 Tcf of natural gas in 2020.
A comparison of the Mid-Velkerri B shale in the Beetaloo Basin with the Marcellus shale in the U.S.
Fig. 5. A comparison of the Mid-Velkerri B shale in the Beetaloo Basin with the Marcellus shale in the U.S. (Tamboran Resources)
Exploration drilling
In 2015-2016, Origin Energy Ltd. (ORG.ASX)(OTCPK:OGFGF) and Falcon Oil & Gas Ltd. (FO.TSX-V)(FOG.AIM)(OTCPK:FOLGF) drilled three wells in the Beetaloo Basin (Fig. 3):
Beetaloo W-1 vertical well penetrated three organic-rich mudstone intervals in the Middle Velkerri (A, B, and C) from 2,593.3 to 3,145.9m and the Kyalla silty mudstone. Kalala S-1 vertical well intersected the organic-rich Middle Velkerri A, B, and C between 2,064 and 2,572m.
The Amungee NW-1H well went through 11 hydraulic stimulation stages in a 1,000m horizontal section in the Middle Velkerri B shale zone, and tested flowing 1.23 MMscf/d over a 57-day period, proving shale gas accumulation in the region. Importantly, the majority (85-95%) of these flows came from only a 200m portion of the well, suggestive of a normalized gas flow rate equivalent of 5.2-5.8 MMscf/d per 1,000m of lateral section. Amungee NW-1H well thus opened the Beetaloo shale gas play. Origin commented "this result indicates the Velkerri dry gas play may be in line with commercial shale plays around the world, based on normalized production rates." Based on these test results, Origin estimated that its license area in the central part of the basin contains 6.6 Tcf of 2C contingent gas resources in the Velkerri B shale.
In 2019, Origin drilled the Kyalla 117 N2 exploration well and the Kyalla 117 N2 horizontal appraisal well. Both wells confirmed the continuation of the shale play.
In 2022, Santos Ltd. (STO.ASX)(OTCPK:STOSF) and Tamboran Resources Limited (TBN.ASX)(OTC:TBNRF) drilled two horizontal wells, and tested flowing gas during extended tests of the Middle Velkerri B shale zone:
Tanumbirini 2H was fracked in 11 stages over a 600m horizontal section, and tested flowing a 14-day average of 1.7 MMscf/d or a normalized rate of 2.6 MMscf/d over 1,000m.
Tanumbirini 3H was fracked in 10 stages over a 600m horizontal section, tested flowing a 10-day average of 1.5 MMscf/d or a normalized rate of 2.5 MMscf/d over 1,000 m.
The test flow rate at Tanumbirini 2H and Tanumbirini 3H peaked at 4 MMscf/d and 10 MMscf/d, respectively, before a weather-related shut-in. Tamboran estimated the Middle Velkerri B shale can flow >5 MMscf/d per 1,000m using a model for optimizing effective fracture stimulation.
In 2020-2021, Empire Energy Group Ltd. (EEG.ASX)(OTCPK:EEGUF) drilled the Carpentaria-1 exploration well, which after a four-stage vertical fracking tested flowing 0.250-0.364 MMscf/d (or a peak rate of 1.6 MMscf/d). Empire followed with the Carpentaria-2H horizontal well.
The Carpentaria-2H well intersected 192m of liquids-rich shale gas net pay in the vertical hole, and has 1,345m horizontal section within the Velkerri B shale. Fracking and flow testing of the horizontal section are scheduled to starting the 2Q2022.
The Beetaloo Cooperative Drilling Program of Australian government has spurred exploration activities in the basin. Although it is still early in the exploration and appraisal phase, flow tests from the Velkerri B shale have confirmed a productive dry gas system in place, thus positioning Beetaloo as an emerging world-class shale gas basin and significantly de-risking the basin for further exploration and development.
Competitive Landscape
Falcon and Origin
Falcon, the first mover in the basin, received exploration permits EP76, EP98, and EP117 in 2005-2006. The three permits, totaling 4.6 million gross acres, cover the majority of the core Beetaloo Basin (Fig. 6).
In 2014, Origin and Sasol Limited (SSL) farmed in, each taking a 35% working interest for US$10.2 million in cash payment and US$29.69 million in stage-1 work commitment. Origin (the operator) and Sasol each hold an option to participate in stage 2 with a work commitment of US$23.19 million and stage 3 with a work commitment of US$22.26 million.
In 2017, the operator Origin acquired Sasol's 35% stake in the project. In 2020, Origin farmed in a further 7.5% working interest, committing to an additional A$150 million carry. As a result of the farm-out agreements, Falcon now holds a 22.5% interest and is carried up to A$263.8 million on gross costs for stage 2 and stage 3.
A map showing permits in the Beetaloo Basin, NT, Australia.
Fig. 6. A map showing permits in the Beetaloo Basin, NT, Australia. (Falcon Oil & Gas)
Peripheral permits
Immediately surrounding the three central permits of Origin and Falcon are additional permits that either covers part of the margins or the eastern depression of the Beetaloo Basin. These permits are:
EP161 (Santos 75% operating; Tamboran 25%) - shale gas has been struck in the eastern depression;
EP136, which covers part of the eastern depression, and EP143 and EP197 (Tamboran 100%);
EP354 (Santos 100%);
EP187, where some shale gas has been struck, and EP159 (Empire 100%);
EP318 (Inpex Corp. 100%);
EP153 (Jacaranda Minerals 50%, Hancock Exploration 50%).
Further away from the core of the basin are additional permits held by Empire, Inpex Corp. (OTCPK:IPXHY) and others.
Risk-Reward Analysis
In June 2002, Range Resources (RRC) drilled the Renz-1 well in Pennsylvania. Two years later, the Marcellus shale in that well was fracked, using a method that had first been tried in the Barnett shale in Texas, thus leading to the opening of the enormous Marcellus play, which ended up as the main growth engine of the U.S. shale gas revolution.
From the dawn of the U.S. shale gas revolution to the late-2014 cycle peak, operators with large land positions in Marcellus saw their share prices skyrocketed. Range achieved a 27-bagger, while fellow Marcellus developers Cabot Oil & Gas Corp - now known as Coterra Energy (CTRA) - pulled off a 24-bagger, CNX Resources (CNX) a 17-bagger by 2008 or a 7-bagger by 2014, and EQT Corp. (EQT) a 6-bagger. Participation in the opening and development of the Marcellus shale gas play rewarded shareholders extremely well (Fig. 7).
Historical natural gas production from the Marcellus shale play in the U.S., and the stock performance of producers with significant participation in the Marcellus play.
Fig. 7. Historical natural gas production from the Marcellus shale play in the U.S., and the stock performance of producers with significant participation in the Marcellus play. (Laurentian Research modified after Wikipedia)
Today's Beetaloo is similar in terms of play maturity to where Marcellus was back in 2004. The Beetaloo shale gas play had just been opened, with a productive shale gas system with stacked pay potential being confirmed to be in place. On the other hand, appraisal of the shale play is still ongoing, and locally-optimal well drilling and completion techniques are yet to be found, which represents some additional risk.
Australian government seems to be doing all the right things to create a pro-business environment for operators in the Beetaloo Basin. Federal financial assistance to exploration drilling succeeded in attracting private capital. However, until the completion of infrastructure upgrade, E&P activities remain to be costly.
That the legal dispute Santos had with a large landowner in NT was quickly resolved indicates land access is well regulated in NT and not an unsurmountable obstacle as in some countries.
Australia has a strong oilfield service industry to support E&P activities in the basin. Furthermore, the know-how with regard to shale gas development the oil industry has gleaned in the U.S. over the past 20 years may be parlayed to Beetaloo.
Therefore, I would venture to say the operating environment at Beetaloo is similar to, if not more advanced than, what had been prevailing on the eve of the opening of the Marcellus play. I thus believe it is an ideal time to make an entry into the Beetaloo play.
The Best Pick
I screened the Beetaloo pack - including Santos, Origin, Inpex, Tamboran, Empire, and Falcon - for the best pick to get exposure to the emerging shale gas play.
First, I assessed how impactful its Beetaloo exposure will be to the company. The Beetaloo projects most probably won't move the needle for Santos and Inpex, which have a market cap of US$20 billion and US$15 billion, respectively. Origin has a market cap of US$8.6 billion but the ownership of 77.5% interest in 4.6 million acres in the central Beetaloo Basin definitely makes the stock attractive. Each of Tamboran, Empire, and Falcon qualifies as a Beetaloo pure-play, giving shareholders substantial exposure to the emerging shale gas play. The small market capitalization of those three companies, at US$167 million, US$162 million, and US$141 million, respectively, means a success in Beetaloo will end up being company making.
Next, I looked at the quality and quantity of the net acreage held by each Beetaloo participant. I prefer Falcon, which occupies the central part of the basin, and Tamboran, which holds acreage in the eastern depression, to Empire, whose land is mostly marginal in spite of the areal extent. Between Falcon and Tamboran, the former seems to own more Beetaloo net acreage than the later (Fig. 8).
The landholding situation with regard to the Middle Velkerri B shale in the Beetaloo Basin.
Fig. 8. The landholding situation with regard to the Middle Velkerri B shale in the Beetaloo Basin. (Tamboran Resources)
I thus narrow down the selection to Origin and Falcon; Origin for those who tend to lose sleep over non-large-cap stocks, and Falcon for those who prefer a small-cap Beetaloo pure-play.
Falcon
Adjusted for flowing production, Range Resources and EQT are priced roughly at US$15,400-17,500 per net Marcellus acre. Once it succeeds in becoming an established producer like Range or EQT in a few years, even if it captures only 1/5 of their valuation metric, Falcon would be worth US$3.3 billion, which implies a 27-bagger from the current market cap. Investors will take moderate risk for an exposure to such an enormous upside since Falcon is carried up to A$263.8 million on exploration spending.
Falcon is estimated to remain ~75% carried for 2022, with the remaining costs to be funded from cash in hand, which currently stands at US$18.4 million. The company may need to raise funds going into 2023, which will result in equity dilution.
With the afore-discussed risk-reward profile, it is no wonder that Sheffield Holdings LP - the investment firm of Bryan Sheffield, the founder and CEO of Parsley Energy before its US$7.6 billion acquisition by Pioneer Natural Resources (PXD) - picked Falcon to invest in, after having made a slightly smaller investment in Tamboran Resources.
Sheffield Holdings recently boosted its stake in Falcon to 90,443,607 common shares or 8.66% of the common shares outstanding, by investing an additional US$10 million at C$0.20 per share.
Sheffield also paid an additional US$6 million to Falcon for a 2% overriding royalty interest (or ORRI) over its 22.5% working interest in the Beetaloo project. Falcon will use the US$6 million to exercise call option so as to reduce the existing ORRI with the TOG Group from 3% to 1%.
Sheffield's investment in Falcon is a powerful endorsement for the Beetaloo shale gas play, and his purchase of the ORRI reveals his belief that Falcon's Beetaloo acreage will become producing assets in the not-too-distant future, as he said,
"The Beetaloo is emerging as a world class shale gas basin with stacked pay potential from several shale intervals. Flow tests from the B Shale of the Amungee Member have confirmed a productive dry gas system in place. Geologic and engineering data from test wells across the Sub-basin have similar properties to some of the highly successful shale gas plays in the United States. The Beetaloo Sub-Basin is still in the exploration and appraisal phase, but with continued good well results, Falcon is well positioned to become a key supplier of low carbon energy to Australia and to the world within a few short years. I am delighted to have this opportunity to acquire a significant interest in Falcon and gain exposure to their net 1 million acres in what may become one of the biggest shale plays in the world."
The next two years are expected to be catalyst-rich for Falcon. Origin and Falcon are currently in the stage 3 work program according to the restated farm-out agreement, which includes acquiring 40 km2 of 3D seismic survey on the Amungee NW-1H well lease area; and drilling two >2,000m horizontal wells on the Amungee NW-1H pad, targeting the Middle Velkerri B shale (aka, the Amungee Member B shale), fracking, and extended-production testing of these wells. Positive results therefrom will lead to a pilot development program in 2023.
Investor Takeaways
With recent successful drilling results, the Beetaloo Basin is emerging as a world-class shale gas basin with a validated shale gas system characterized by multi-stacked pay zones.
Shareholders may reap enormous gains by investing in the opening of such an exciting new shale gas play.
According to my analysis of the competitive landscape in the basin, I believe first mover Falcon Oil & Gas provides the most advantageous exposure to Beetaloo for those who favor small-cap, pure-play ideas for the outsized upside potential; for those averse to small-cap volatility, Origin Energy can be chosen for a decent exposure to the emerging shale gas play.
I have established a position in Falcon and plan to add to it opportunistically based on operational progresses (Fig. 9).
Stock chart of Falcon Oil & Gas and Origin Energy.
Fig. 9. Stock chart of Falcon Oil & Gas and Origin Energy. (Seeking Alpha, modified by Laurentian Research)
[This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these s
EP 136 Maverick 1V update:
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Tamboran Resources records strong gas shows at Maverick 1V well in Beetaloo Basin
20:29 Thu 06 Oct 2022
Ephrem Joseph
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Tamboran Resources Ltd
ASX:TBN
Tamboran Resources Ltd - Tamboran Resources exhibits strong gas shows at Maverick 1V well in Beetaloo Basin
Ensign 970 drilling Maverick 1V within EP 136.
Tamboran Resources Ltd (ASX:TBN) has recorded strong gas shows from its Maverick 1V well within the Beetaloo Basin Permit EP 136 in the Northern Territory of Australia.
Notably, the company’s drilling reached a total depth of 3,050 metres in 18.3 days, representing a 54% reduction in drilling time compared to other near-field vertical sections drilled deeper than 2,500 metres in the Beetaloo Basin.
Moving forward, preparations are underway for a comprehensive wireline logging evaluation before suspending the well.
“Exciting milestone”
Tamboran managing director and CEO Joel Riddle said: “The drilling of our first operated well within the Beetaloo Basin is an exciting milestone for our team, allowing us to showcase the performance gains and drilling efficiencies we can bring to the region.
“The well intersected the three target Mid-Velkerri shale formations, which found gas-bearing shales in line with pre-drill expectation.
“We look forward to returning to the M1V well for future evaluation.
“We are extremely pleased we have been able to drill through the Moroak Sandstone in record time and, importantly, without any reportable safety or environmental incidents.
“The Moroak Sandstone has been a big challenge for all operators drilling in the Basin to date and this performance sets a new standard.
“Pleasingly, we were able to considerably reduce the average time for drilling a deep Beetaloo well.
“This is the first step in delivering on our development well cost targets of approximately $20 – 25 million for a deeper Mid-Velkerri well.
“We look forward to applying these techniques as we move to our two operated Amungee wells within the recently acquired EP 98 permit, subject to completion of the transaction with Origin and receiving necessary approvals."
Drill summary
Tamboran has applied its experience and technical expertise, as well as learnings from the T2H and T3H wells to the drilling of the M1V well.
The company’s newly designed bit and bottomhole assembly delivered a 314% faster rate of penetration through the Moroak sandstone, the toughest interval to drill efficiently in the deeper Beetaloo due to its abrasive and hard nature.
Based on mud-logs, the M1V well has intersected Mid-Velkerri A, B and C shales exhibiting strong gas shows, consistent with other nearby wells and in line with expectations.
These improvements are expected to result in a significant reduction in time for drilling through the Moroak sandstone in future development wells, supporting cost reductions.
Tamboran also used a new low solid drilling fluid system that is believed to have assisted in these record times. Tamboran’s technical team plans to use these learnings in the two operated Amungee horizontal wells within the recently acquired EP 98 acreage, subject to completion of the transaction with Origin.
Forward plan
The forward plan for M1V is to acquire wireline logs and then suspend the well, following a decision to prioritise the acceleration of booking 2P reserves and first commercial production from the proposed Amungee Pilot Development, which is supported by the recently signed 10-year GSA with Origin.
Tamboran will assess the potential to use data from the two Amungee wells to optimise a future 3,000- metre horizontal section in the Maverick well, using the H&P super-spec FlexRig® , which is planned to be mobilised into Australia for the company’s proposed 2023 development drilling campaign.
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Prescient Therapeutics exceeds SPP target, delivers top-up placement to accommodate demand
20:12 Thu 06 Oct 2022
Elisha Newell
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Prescient Therapeutics Ltd
ASX:PTX
Prescient Therapeutics Ltd - Prescient Therapeutics exceeds SPP target, delivers top-up placement to accommodate demand
Prescient Therapeutics Ltd (ASX:PTX) has brought in AS$8.76 million thanks to a share purchase plan (SPP) — well above the A$8 million target thanks to strong investor demand.
The SPP bolsters Prescient’s cash balance, which will be used to progress the company’s deep pipeline of innovative cancer therapies.
At present, the clinical-stage oncology company is focused on bringing its targeted PTX-100 and PTX-200 drug candidates through the clinic, bringing them one step closer to first-in-human studies.
Funds raised will also cover costs associated with the offer and provide general working capital. Shares are scheduled for allotment on Tuesday, October 11.
Wholesale placement
In tandem with the SPP results announcement, Prescient has entered a trading halt ahead of a top-up placement, which will accommodate the high demand.
This will allow wholesale investors who want to pick up more than A$30,000 worth of Prescient shares to request a greater allocation.
Shareholders who are interested in participating can apply here.
The company will use part of its 7.1A placement capacity to undertake this placement.
“Moving the needle for patients”
Prescient managing director and CEO Steven Yatomi-Clarke thanked Prescient shareholders for their strong support of the SPP.
“It is a significant achievement to exceed our target amidst challenging market conditions,” he explained.
“It is a testament to the shared vision of shareholders and the company to develop innovative cancer therapies that can really move the needle for patients by overcoming obstacles confronting the field.
“With a further strengthened balance sheet, Prescient is able to maintain its impressive development momentum, deploying these funds astutely for the benefit of patients and shareholders alike.”
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Review of insider trades last 12 months:. Tamboran Resources Limited (ASX:TBN) insiders placed bullish bets worth AU$21m in the last 12 months https://au.finance.yahoo.com/news/tamboran-resources-limited-asx-tbn-221440593.html
Feb 2022 Upstream article about the Beetaloo basin: Flow rates give Beetaloo shale gas the boost it needs
Two main operators - Santos and Origin - move closer to firming up commerciality
1 February 2022 4:19 GMT UPDATED 1 February 2022 4:19 GMT
By Russell Searancke
Australian operator Santos has taken a big step forward in proving up a commercial shale gas resource in the Beetaloo sub-basin with the successful flow testing of two wells at the Tanumbirini field.
The Tanumbirini-2H and Tanumbirini-3H wells drilled in Northern Territory permit EP 161 have delivered gas to surface from the Mid-Velkerri B shale over an initial 30-day period, said joint venture partner Tamboran Resources.
Tanumbirini-2H peaked at 4 million cubic feet per day of gas following a weather-related shut-in in mid-January 2022. The well then stabilised at a 14-day average of 1.7 MMcfd over a 660-metre unoptimised fracture stimulated horizontal section.
Testing times ahead in Australia's Beetaloo shale play
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Tanumbirini-3H peaked at 10 MMcfd following shut-ins for the same weather-related event and planned maintenance; then stabilising at a 10-day average of 1.5 MMcfd over a 600-metre unoptimised fracture stimulated horizontal section.
Potential flow rates
Tamboran said its modelling indicates the Mid-Velkerri shale is capable of flowing gas in excess of 5 MMcfd per 1000-metre horizontal section.
Joel Riddle, chief executive of Tamboran, said: “We are encouraged by the initial flow rates, which support and validate Tamboran’s Mid-Velkerri shale model. The flow tests have proven that the hydrocarbon system is working as expected and, similar to the evolution of the best North American shales, the next steps are to optimise the results with larger and more effective fracture stimulation designs, with well design completion techniques expected to have a considerable impact on the ultimate recovery of these wells."
“The rocks are working as expected and the next steps are to optimise the results with larger and more effective fracture stimulation designs."
Riddle said the 5 MMcfd modelling predictions were of "material importance as we seek to accelerate the commercialisation and development of the Beetaloo sub-basin, with the first pilot production targeted for the end of calendar year 2025".
“The drilling of the T2H and T3H wells have de-risked the geology within the core Beetaloo. Coupled with results from the Velkerri 76 S2-1 well drilled by Origin in the neighbouring permit, EP 76, these results validate an active hydrocarbon system surrounding Tamboran’s 100% owned and operated EP 136 permit. We are planning to drill the M1H well between the Tanumbirini and Velkerri 76 S wells, in the heart of the core Beetaloo."
Santos has a 75% operator interest in Block EP 161 while Tamboran has 25%.
The Origin/Falcon JV
Origin is the second major operator in the Beetaloo with joint venture partner Falcon Oil & Gas.
In its December 32021 quarterly, Origin said the drilling of the Velkerri 76 S2-1 well was completed in the last quarter with encouraging preliminary results indicating that the Velkerri shales were within the wet gas maturity window.
"Core sample analysis is being undertaken to determine gas composition," said Origin.
JV partner Falcon said on 25 January 2022 the partnership had agreed on a planned stage three work programme for this year which will include the drilling, fracture stimulation and extended production test of two horizontal wells on the Amungee NW-1H well lease area.
Work will also include follow-up core and log analysis of the “very encouraging” preliminary evaluation of the 2021 Velkerri 76 well results; and further evaluation of the results of the Kyalla 117 N2-1H well drilled last year.
Australia's gas-fired recovery starts with Beetaloo sub-basin success
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Falcon chief executive Philip O’Quigley said: “This is an extremely important period for the Beetaloo sub-Basin and we are delighted to have confirmed a high-impact, extensive and really exciting work programme for the joint venture.
"We will be focusing our attention on the Amungee Member B Shale, following the 2021 results at Amungee NW-1H, which suggested a normalised gas flow rate equivalent to around 5000 Mscf/d per 1000m of horizontal section; a potentially commercial flow rate.
"Positive results here will provide a further line of sight to the commercialisation of the Beetaloo and could lead to a pilot development program in 2023. Confirmation on the commencement on the Stage 3 work programme will be provided in the coming months as scheduling is refined."
American horsepower set to arrive in Australia's Beetaloo sub-basin shale play
Two major US investors agree to be involved in maturing a potential 1 Bcfd shale gas project
21 September 2022 1:20 GMT UPDATED 21 September 2022 9:43 GMT
By Russell Searancke in Wellington
Two investors with deep experience of the US shale gas sector have agreed to invest a combined A$104 million (US$69.5 million) in Australia’s Beetaloo sub-basin through agreements with the ambitious local operator Tamboran Resources.
In separate transactions, Tamboran — which two days ago agreed to acquire Origin Energy’s 77.5% operator interest in a large discovered shale gas resource in the Beetaloo — is being supported by investor Bryan Sheffield and the large US onshore drilling company Helmerich & Payne (H&P).
Beetaloo bombshell: Aussie operator exits high-potential shale gas play
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Tamboran said Sheffield is the founder, chairman and chief executive of US unconventional exploration and production company Parsley Energy, which was acquired by Pioneer Natural Resources in January 2021.
Sheffield is also the founder and managing partner of Formentera Partners, a private oil and gas company, and is investing in Tamboran through his wholly-owned entity Daly Waters Energy.
Sheffield is investing A$82 million in Tamboran including as a cornerstone equity investment of A$30 million in Tamboran's institutional placement to raise funds for the Origin acquisition and planned activities in the Beetaloo.
Tamboran said it will work with Sheffield to further de-risk the Beetaloo sub-basin.
Sheffield said: “I believe this multi-stacked resource play has the potential to replicate the Permian and be one of the solutions to address the global energy crisis. I'm thrilled to partner with Tamboran and H&P, teaming up with a top-tier operator and one of the best drilling companies in the world to develop this play.”
Helmerich and Payne, which is the largest drilling solutions provider in the US, according to Tamboran, has agreed to a A$22 million investment in the Tamboran placement.
In return, Tamboran has entered into a drilling contract with H&P for a super-spec FlexRig for a two-year term.
The rig will mobilise into Australia for Tamboran's 2023 drilling campaign which, if successful, is expected to position Tamboran for the sanctioning of the proposed Amungee pilot development by the end of 2023.
H&P will also have the right of first refusal until 2033 to provide Tamboran with all subsequent rigs required to accelerate the company’s 1 billion cubic feet per day development plan at market rates.
The FlexRig, with more than 2000 horsepower and 1 million-pound hookload, will be one of Australia’s most powerful onshore drilling rigs, capable of drilling more than 4000-metre horizontal sections within the Mid-Velkerri B Shale of the Beetaloo.
Tamboran Resources chief executive Joel Riddle said: “We are extremely excited to work with H&P to bring one of the largest US onshore drilling and service providers into the Beetaloo basin.
“The strategic alliance with H&P, alongside their A$22 million equity investment in Tamboran, aims to bring unrivaled US unconventional expertise and knowledge into the development of our significant low-CO2 natural gas resource and materially reduce costs.
“The equity investment reflects H&P’s confidence in the quality and focus of Tamboran’s assets and operational team.”
Australia’s search for world-class shale gas resource remains in focus
Read more
H&P chief executive John Lindsay said: “We are excited about our investment in Tamboran as well as the opportunity to work with the company to unlock the potential in the Beetaloo basin.
“Our strategic alliance creates a win-win scenario. H&P supporting Tamboran’s development plans in the Northern Territory, while at the same time executing on H&P’s strategy to gain more international exposure, utilising our FlexRig fleet, technology and drilling expertise to develop unconventional resources outside the US
What We Talked About Today: Falcon Oil & Gas, Tamboran Resources, And Bryan Sheffield In Beetaloo Shale Gas Play https://seekingalpha.com/instablog/41325066-laurentian-research/5782155-what-talked-today-falcon-oil-and-gas-tamboran-resources-and-bryan-sheffield-in-beetaloo-shale
Very interesting Seeking alpha article:
What We Talked About Today: Falcon Oil & Gas, Tamboran Resources, And Bryan Sheffield In Beetaloo Shale Gas Play
Sep. 27, 2022 3:46 PM ETFalcon Oil & Gas Ltd. (FO:CA), FOLGF, TBNRFHP, OGFGF, OGFGY, PXD1 Comment
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Summary
This piece was first presented to The Natural Resources Hub members on September 19, hours after the breaking news of Origin Energy selling its Beetaloo stake.
The article was posted just on time for TNRH members to buy the steep, knee-jerky selloff and reap a 30% gain within 12 hours.
The article is reproduced here not only to highlight the exceptional value of our research to TNRH members but also because it is still valid for Beetaloo speculators.
EIA and ARI, Inc.
Today (September 19, 2022), Origin Energy (OTCPK:OGFGF) sold its 77.5% stake in the Beetaloo Basin JV, Northern Territory, to a 50:50 partnership between Tamboran Resources (OTCPK:TBNRF) and Bryan Sheffield.
Origin
Origin gets A$60 million ($40 million) upfront in cash, and a 5.5% royalty on future production of the Tamboran-Sheffield JV from the permits and the offtaking right to 36.5 petajoules of gas (or 34.6 Bcf) per year for 10 years. Given Beetaloo is yet to be fully delineated and has an uncertain development schedule, it is not an easy task to assess the value of the 5.5% royalty. As such, it is premature to judge whether Origin managed to extract a fair deal or had a fire sale.
Origin, like most oil and gas companies, is pivoting to short-cycle projects for immediate cash flow, despite its spin of a focus on renewable energy. For a large-cap producer, Origin must decide between a host of competing projects (including the lucrative Australia Pacific LNG and coalbed methane supply to APLNG), and Beetaloo as an exploration-stage venture probably ends up on the back burner in a shift toward short cycle capital spending.
However, Origin is committed to spending US$46.38 million in stage 2 and US$44.52 million in stage 3, following its takeover of Sasol interest in Beetaloo.
To resolve the conundrum, Origin decides to exit, as its CEO Frank Calabria put it:
"We felt given ... these are long-dated, they're in exploration phase, they'll be more capital intensive over time, that this was a good way forward for us in terms of getting the benefits of it without that capital intensity over time."
Origin's move should not be construed as lost confidence in Beetaloo shale gas play. Calabria allowed, "it doesn't change our view on gas. Gas is still going to play a critical role." Origin is also looking to exit from its exploration permits in the Canning Basin in Western Australia and the Cooper-Eromanga Basin in Queensland.
Tamboran Resources
After the completion of the acquisition, Tamboran will hold a 38.75% operated interest, Bryan Sheffield - ex-CEO of Parsley Energy, now part of Pioneer Natural Resources (PXD) - will have a 38.75% non-operating interest, and Falcon Oil & Gas Ltd. (OTCPK:FOLGF) will retain a 22.5% non-operating interest in the three permits (EP 98, 117 and 76).
Tamboran has committed to solely fund the remaining work commitment of Origin for Stage 3 farm-in, including two horizontal wells at an estimated cost of A$80 million and back costs to the effective date of July 1, 2022.
Tamboran Resources plans to raise A$138 million (US$89 million) at A$0.21 per share, which represents a 22.2% discount to the close price of September 14, 2022, to fund the acquisition of the Origin Assets and planned drilling program. The placement will include two tranches: The first tranche of A$39.2 million is not subject to shareholder approval, while the second tranche of $98.8 million will be subject to shareholder approval at a general meeting scheduled for October 25, 2022. Longview Petroleum, the largest shareholder (19.6% pre-raise), favors the equity raise. As to the resultant equity dilution, Tamboran CEO Joel Riddle said,
"No one wants to take dilution, of course. But when you look at the opportunity, by acquiring the Origin assets this is hugely accretive."
Some A$98 million will be raised in a private placement to strategic partners and US cornerstone investors. Of those A$98 million, A$31.1 million will be co-investment by Sheffield to acquire a 38.75% net interest post-completion; A$22.2 million will be grant to Sheffield of a 2.3% overriding royalty interest covering EP 136 (Tamboran 100%), EP 161 (Tamboran 25%) and the Origin Assets (Tamboran 38.75%); and an additional A$22 million (106.0 million shares) will be raised from Helmerich and Payne, Inc. (HP).
Tamboran has completed an additional equity raising of ~A$40.0 million, and intends to undertake a non-underwritten share purchase plan aiming to raise ~A$3.0 million or no more than A$5.0 million after oversubscription, at A$0.21 per share, on the same terms as with the strategic investors.
In exchange for its A$22 million strategic investment, Helmerich & Payne gets a firm drilling contract for the 2023 proposed drilling campaign, under which it will mobilize a super-spec FlexRig® for a two-year term. In addition, the drilling contractor will have the right of first refusal until 2033 to provide all subsequent rigs required to develop Beetaloo. Helmerich & Payne essentially blocks out any competitors that aspire for a piece of the Beetaloo pie.
Upon closing the acquisition, Tamboran will emerge with a dominant position in the Beetaloo play (Fig. 1; Table 1). Underpinned by the offtaking agreement locked in with Origin, Tamboran plans a pilot project with a proposed drilling campaign in 2023, looking to sanctioning of the proposed Amungee pilot development by the end of 2023 and produce first gas in 2025.
It is worth noting Tamboran will focus on the Amungee permit acquired from Origin, not any permits it previously held. That confirms our favorable view of the Falcon permits.
A map showing permits in the Beetaloo Basin, NT, Australia
Fg. 1. A map showing permits in the Beetaloo Basin, NT, Australia (Falcon Oil & Gas)
Tamboran Resources corporate overview
Table 1. Tamboran Resources corporate overview (Tamboran Resources )
Bryan Sheffield
Sheffield Holdings LP - the investment firm of Bryan Sheffield - has investment in Falcon as well as Tamboran:
Sheffield Holdings recently boosted its stake in Falcon to 90,443,607 common shares (8.66%), by investing an additional US$10 million at C$0.20 per share. Sheffield also paid an additional US$6 million to Falcon for a 2% overriding royalty interest (or ORRI) over its 22.5% interest. Falcon used the US$6 million to exercise call option so as to reduce the existing ORRI with the TOG Group from 3% to 1%.
Sheffield Holdings held 69,540,970 common shares (9.3%) in Tamboran as of February 2022. Sheffield has committed to acquire 141.1 million shares for A$30 million, which takes his total number of shares in Tamboran to 214.1 million (15.2%).
It typically takes up to 5-7 years for a PE firm to launch or turn around an operation and shepherd it to profitability; but it usually takes a decade or longer for an entrepreneur to build a company. Sheffield, as a company builder, may have a time horizon even longer than any PE firms. That is something we retail investors should bear in mind in understanding Sheffield's strategic intention.
Sheffield has patiently built up a significant position in the Beetaloo play. The important question is whether he will exert his power as a major shareholder to intentionally depress the share price of either Falcon or Tamboran in an effort to accumulate more shares. I believe the primary focus of Sheffield at this time is likely to be uniting various parties and attracting more participants in the Beetaloo play, rather than squeezing out existing partners.
Falcon
Falcon - first mover in the Beetaloo play - holds a 22.5% interest in 4.6 million gross acres in permits EP76, EP98, and EP117 in core Beetaloo play (Fig. 1).
Under the terms of the joint operating agreement, Falcon has a right of first refusal to notify Origin, with 30 days of any proposed change of control, its intention to acquire the 77.5% stake held by Origin. Falcon has not decided on if it will use its ROFR although I do not believe it will.
Falcon is being carried up to A$263.8 million on gross costs for stage 2 and stage 3. Thanks to the carry, Falcon will subject shareholders to less equity dilution than Tamboran.
I believe Tamboran (the operator), Falcon (non-operating partner), Origin (royalty holder through Tamboran) and Sheffield (equity investor in both Tamboran and Falcon and royalty holder via Falcon) can have a constructive relationship. Multi-party joint ventures are a common practice in the oil industry since its infancy.
Near-term catalysts and risks
In the remainder of 2022, Tamboran will drill vertical well Maverick 1V in EP 136 and horizontal wells Amungee 2H/3H in EP 98 near the existing McArthur River Gas Pipeline infrastructure. Maverick 1V will potentially increase the total net 2C contingent gas resources to ~2.0 Tcf.
In 2023, Tamboran plans to drill, fracture stimulate, and flow test those two horizontal wells in EP 98, with a potential of delineating net 2C contingent gas resources of ~2.9 Tcf and booking ~0.7 Tcf 2P gas reserves underpinned by the 10-year, 34.6 Bcf/year offtaking agreement with Origin and sanctioning of the proposed Amungee pilot development in EP 98.
By 2025, Tamboran targets to book ~5.0 Tcf net 2P gas reserves via a proposed 2.2 Mtpa LNG tolling agreement.
The above are supposed to de-risk the Beetaloo project and drive the appreciation of Tamboran and Falcon share prices.
Investors are exposed to multiple risk factors, including the inevitable subsurface uncertainty and lack of infrastructure, which I discussed more fully in a previous article. Anyone who does not have a time horizon longer than 5-7 years may not be in Beetaloo since it takes a lot of patience to watch the investment thesis to work out over a lengthy period of time. Both Falcon and Tamboran do not trade on a major U.S. exchange; they trade in the U.S. on the OTC board, where liquidity may be limited.
Investor takeaways
The transaction between Origin and Tamboran-Sheffield has changed the competitive landscape in the Beetaloo Basin. The deal does not diminish my bullishness on this emerging shale gas play. Origin exits to pursue shorter-cycle projects, not out of a disappointment at the subsurface geology, and apparently not in a fire sale. From now on, Beetaloo will not be competing for capital and manpower with other projects on Origin's portfolio since it will be the sole focus of Tamboran. As a result, project execution will likely be accelerated.
Tamboran is going all out with Beetaloo, hoping the shale play to be its company maker. In contrast, Falcon is being carried in the foreseeable future, thus exposing shareholders to lower risk.
I have a long-term hold position in Falcon, which I plan to continue to hold. Should the market offer Falcon shares at a bargain price, I may even add to it.
However, those who are still on the sidelines may also consider Tamboran as a speculative bet on an opening shale gas province.
Disclosure: I/we have a beneficial long position in the shares of TNRH Live Portfolio either through stock ownership, options, or other derivatives.
Additional disclosure: In any case, please be reminded that it is your personal call to decide whether and when to invest in any securities. You risk losing money by deciding to invest in any securities. I fully disclose my positions but I may change my holdings anytime in the future without prior notice. My time horizon and risk appetite may differ substantially from yours. In addition, I am not an investment advisor; nor do I pretend to be giving anyone any investment advice; this article and any other articles written by me just reflect my opinion derived from my research based on the publicly available information. You should consult a certified investment advisor and take full responsibility for your investment decisions.
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Brief summary of annual report: https://menafn.com/1104942602/Tamboran-Resources-Limited-ASXTBN-2022-Annual-Report
Australia stock market and announcements, along with latest annual report: https://www2.asx.com.au/markets/company/tbn
Ambitious plans: Tamboran sees a huge potential project in the Beetaloo sub-basinPhoto: TAMBORAN RESOURCES
American horsepower set to arrive in Australia's Beetaloo sub-basin shale play
Two major US investors agree to be involved in maturing a potential 1 Bcfd shale gas project
21 September 2022 1:20 GMT UPDATED 21 September 2022 9:43 GMT
By Russell Searancke in Wellington
Two investors with deep experience of the US shale gas sector have agreed to invest a combined A$104 million (US$69.5 million) in Australia’s Beetaloo sub-basin through agreements with the ambitious local operator Tamboran Resources.
In separate transactions, Tamboran — which two days ago agreed to acquire Origin Energy’s 77.5% operator interest in a large discovered shale gas resource in the Beetaloo — is being supported by investor Bryan Sheffield and the large US onshore drilling company Helmerich & Payne (H&P).
Beetaloo bombshell: Aussie operator exits high-potential shale gas play
Read more
Tamboran said Sheffield is the founder, chairman and chief executive of US unconventional exploration and production company Parsley Energy, which was acquired by Pioneer Natural Resources in January 2021.
Sheffield is also the founder and managing partner of Formentera Partners, a private oil and gas company, and is investing in Tamboran through his wholly-owned entity Daly Waters Energy.
Sheffield is investing A$82 million in Tamboran including as a cornerstone equity investment of A$30 million in Tamboran's institutional placement to raise funds for the Origin acquisition and planned activities in the Beetaloo.
Tamboran said it will work with Sheffield to further de-risk the Beetaloo sub-basin.
Sheffield said: “I believe this multi-stacked resource play has the potential to replicate the Permian and be one of the solutions to address the global energy crisis. I'm thrilled to partner with Tamboran and H&P, teaming up with a top-tier operator and one of the best drilling companies in the world to develop this play.”
Helmerich and Payne, which is the largest drilling solutions provider in the US, according to Tamboran, has agreed to a A$22 million investment in the Tamboran placement.
In return, Tamboran has entered into a drilling contract with H&P for a super-spec FlexRig for a two-year term.
The rig will mobilise into Australia for Tamboran's 2023 drilling campaign which, if successful, is expected to position Tamboran for the sanctioning of the proposed Amungee pilot development by the end of 2023.
H&P will also have the right of first refusal until 2033 to provide Tamboran with all subsequent rigs required to accelerate the company’s 1 billion cubic feet per day development plan at market rates.
The FlexRig, with more than 2000 horsepower and 1 million-pound hookload, will be one of Australia’s most powerful onshore drilling rigs, capable of drilling more than 4000-metre horizontal sections within the Mid-Velkerri B Shale of the Beetaloo.
Tamboran Resources chief executive Joel Riddle said: “We are extremely excited to work with H&P to bring one of the largest US onshore drilling and service providers into the Beetaloo basin.
“The strategic alliance with H&P, alongside their A$22 million equity investment in Tamboran, aims to bring unrivaled US unconventional expertise and knowledge into the development of our significant low-CO2 natural gas resource and materially reduce costs.
“The equity investment reflects H&P’s confidence in the quality and focus of Tamboran’s assets and operational team.”
Australia’s search for world-class shale gas resource remains in focus
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H&P chief executive John Lindsay said: “We are excited about our investment in Tamboran as well as the opportunity to work with the company to unlock the potential in the Beetaloo basin.
“Our strategic alliance creates a win-win scenario. H&P supporting Tamboran’s development plans in the Northern Territory, while at the same time executing on H&P’s strategy to gain more international exposure, utilising our FlexRig fleet, technology and drilling expertise to develop unconventional resources outside the US.”
Tamboran's acreage: in the Beetaloo including the Origin area Photo: TAMBORAN RESOURCES
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Tamboran Resources Limited Purchases Origin's Beetaloo Basin Assets and Equity Raise
09/19/2022 | 08:40pm
Sydney, Australia (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNNY) announces acquisition of Origin Energy's Beetaloo Assets, funded through a placement and strategic partnerships to raise up to ~$195 million.
Highlights
- Tamboran and Bryan Sheffield (Sheffield) have agreed to jointly (50% each) acquire Origin Energy's (Origin) 77.5 per cent interest in three Beetaloo Basin permits (EP 98, 117 and 76) through a joint venture entity (the JV) for an upfront cash consideration of $60 million plus a future production royalty.
- Tamboran becomes the largest acreage holder in the Beetaloo Basin with ~1.9 million net prospective acres, resulting in a ~270 per cent increase in Tamboran's estimate of net 2C contingent gas resources to ~1.5 trillion cubic feet (TCF).
- The JV has entered into a binding 10-year Gas Sales Agreement (GSA) for up to 36.5 PJ per annum (18.3 PJ per annum net to Tamboran) with Origin, Australia's leading energy retailer.
- The acquisition will be funded through an institutional placement to new and existing shareholders to raise up to $138 million (before costs) at $0.21 per share, representing a 22.2 and 18.2 per cent discount to the Company's closing price and five-day VWAP, respectively, on Wednesday 14 September 2022.
- The institutional placement included a $98 million Private Placement of shares to strategic partners and US cornerstone investors, supported by investments of $30 million by Sheffield and $22 million by Helmerich and Payne (H&P).
- The placement has been structured in two tranches, with the second tranche subject to shareholder approval at a General Meeting to be held on Tuesday, 25 October 2022.
- Tamboran intends to launch a Share Purchase Plan (SPP) allowing existing shareholders to participate on the same terms as the placement at $0.21 per share, targeting $3.0 million.
- Tamboran's major shareholders, representing over 50 per cent of the Ordinary Shares who are entitled to vote, intend to vote in favour of the Placement, including Tamboran's Board and largest shareholder, Longview Petroleum (19.6% interest).
- Immediate near-term catalysts include the drilling of Maverick 1V (M1V) in EP 136, currently underway, and two Amungee wells are planned to commence in October 2022. Initial production rates from the two Amungee wells are expected to be announced in early calendar year 2023.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
"The acquisition of Origin's Beetaloo assets is transformational for Tamboran and our shareholders, positioning the Company as the largest acreage holder in the Basin. This allows Tamboran to set the pace
of development, which will involve a focus on accelerating initial production and cash flow generation from the acreage around the Amungee area. Commercialisation of the gas at Amungee is supported by a binding 10-year GSA with Origin and the previously announced Memorandum of Understanding with Jemena, which secured Tamboran access to the Northern Gas Pipeline, the only pipeline currently connecting the Northern Territory to Australia's East Coast.
"Tamboran will jointly acquire Origin's Beetaloo Basin assets with Bryan Sheffield, the Founder, Chairman and CEO of US unconventional E&P Parsley Energy, which was acquired by Pioneer Natural Resources in January 2021 for ~US$7.5 billion. Mr. Sheffield is the Founder and Managing Partner of Formentera Partners, a private oil and gas firm, and is investing through his wholly owned entity, Daly Waters Energy, LP. Tamboran will assume operatorship and work with Mr. Sheffield to further de-risk the Basin. Sheffield's total $82 million investment includes a cornerstone equity investment of $30 million in the placement.
"H&P, the largest onshore driller in the United States, has invested $22 million in the placement. Having Sheffield and H&P join Tamboran in the Beetaloo brings additional US unconventional expertise and capital to the region. Working together closely, we intend to focus on accelerating the pace of activity through improved well designs and operational efficiencies, which are expected to improve development economics.
"The acquisition of Origin's assets secures the JV a binding GSA with Origin, a leading energy retailer and one of the largest suppliers on the East Coast. Under the GSA, the JV will supply Origin with up to 36.5 PJ per annum (18.3 PJ per annum net to Tamboran) for 10 years, providing the JV with near-term pathway to cash flow. Alongside the recently announced Memorandum of Understanding with Jemena, which allows access to the Northern Gas Pipeline, the Origin GSA is expected to support our ambition to supply lowcarbon dioxide gas to Australia's East Coast gas market.
"Tamboran remains absolutely committed to operating sustainably. We intend to build on the deep relationships with Traditional Owners, pastoralists, other local stakeholders and the Northern Territory Government that have been fostered by Origin in the Beetaloo over its substantial, multi-year exploration and appraisal program. The Company is committed to working constructively and transparently in all interactions as we seek to support businesses, jobs and local interests as a member of the community.
"The Company's vision for playing our part in the global transition to a lower carbon economy through the production of low CO2 natural gas resources also remains unchanged. Our objective is to become a Net Zero carbon emissions gas producer for our equity share of Scope 1 and Scope 2 emissions when the Company commences commercial sales of natural gas by integrating renewable energy and carbon offsets into any development.
"Thank you to everyone who has supported Tamboran's placement, who have made this transformational acquisition possible. This is truly an exciting time for the Company as we look to prove up a world-class gas resource. We expect Beetaloo gas will deliver affordable, low-CO2 natural gas to Australia's East Coast gas market and global LNG markets over the next decade. I look forward to sharing the progress of our drilling activity over the next few months in due course.
Bryan Sheffield said:
"I believe this multi-stacked resource play has the potential to replicate the Permian and be one of the solutions to address the global energy crisis. I'm thrilled to partner with Tamboran and H&P, teaming up with a top-tier operator and one of the best drilling companies in the world to develop this play."
Terms of the acquisition of Origin Energy's Beetaloo assets The JV (which is 50% owned by Tamboran and 50% owned by Sheffield) will acquire Origin's 77.5% interest and operatorship in three Beetaloo Basin blocks (EP 98, 117 and 76) with an effective date of 1 July 2022. The acquisition of Origin Energy's Beetaloo assets is subject to regulatory approval, waiving of pre-emptive rights and other customary conditions.
To view the terms of the transaction, please visit:
https://abnnewswire.net/lnk/C4ADOMO5
About Tamboran Resources Limited:
Tamboran 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.
Source:
Tamboran Resources Limited
Contact:
Investor enquiries:
Chris Morbey
Vice President - Investor Relations
+61-2-8330-6626
Investors@tamboran.com
Media enquiries:
+61 2 8330 6626
Media@tamboran.com
Copyright 2022 © ABN Newswire
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