EP136 Operational Update
The M1H well will be drilled with an optimised well design over a planned 1,000-metre horizontal section and is targeted to include up to 20 fracture stimulated stages.
The final well design for the M1H well has benefitted from additional data provided by the Tanumbirini 2H (T2H) and 3H (T3H) flow rest results. This increases management's confidence in achieving potentially commercial flow rates.
The 2D seismic acquisition program planned for EP 136 was reduced from 250 kilometres to ~90 kilometres following consultation with key stakeholders to minimise land disturbance. This is expected to commence during the June quarter, subject to receiving relevant consents.
The Northern Territory Civil and Administrative Tribunal (NTCAT) has provided a final determination regarding the terms of the Land Access and Compensation Agreement (LACA) for Tanumbirini Station covering EP 136. This determination allows Tamboran to commence calendar year 2022 activities at Tanumbirini Station on EP 136.
Tamboran Managing Director and CEO, Joel Riddle, said:
"Tamboran has secured the Ensign Rig 970 to drill the M1H well that is anticipated to spud during the third quarter of calendar year 2022, subject to EMP approvals. Spudding of the well will be a major milestone for the Company as we seek to unlock the full potential of the Beetaloo Sub-basin in the Northern Territory.
The team is working with full focus on delivering initial production rates by the end of calendar year 2022.
"We have signed key contracts to undertake the 2022 seismic and drilling campaign within EP 136. This includes contracting the Ensign Rig 970 to drill the M1H well. The 90-kilometre 2D seismic acquisition program is expected to commence in coming weeks, subject to receiving relevant government consents.
"Tamboran's M1H well design aims to considerably increase the fracture stimulation intensity, which we expect will unlock the true deliverability of the shale within the Mid Velkerri 'B shale' formation of the Core Beetaloo Sub-basin. The design includes a 1,000-metre horizontal section within the Mid-Velkerri 'B shale' formation, with up to 20 fracture stimulation stages at tighter intervals and increased proppant intensity when compared to the T2H and T3H wells drilled by Santos in the adjacent EP 161 permit.
"The design is supported by our proprietary intellectual property, which was built on the Tamboran team's experience of having drilled more than 5,000 unconventional wells in North America and validated by leading shale independent consultants. This was further validated with the initial flow results of the T2H and T3H wells drilled in EP 161.
"In addition to our drilling plan, our team has worked in close consultation with our key stakeholders to support reduction of land disturbance within our acreage. This has resulted in an approximately 65 per cent reduction to our planned 2D seismic acquisition program to approximately 90 kilometres within our operated EP 136 permit.
"We are excited to commence the pathway towards commercialisation of our vast acreage, which we believe will play a leading role in supporting Australia's energy security for decades. We expect the Beetaloo Sub-basin to play a major role in alleviating the East Coast gas market shortfall, which revised Australian Energy Market Operator (AEMO) data has indicated could be as early as the winter of 2023.
The acreage also has the potential to supply gas for LNG exports, given the global shortage following recent geo-political events.
"We are pleased to have received a positive determination in respect of the LACA for Tanumbirini Station following comprehensive proceedings and review in the NTCAT. The determination provides what we believe to be fair compensation for the pastoral leaseholder. Importantly, the determination allows us to commence our calendar year 2022 activities at Tanumbirini Station in our 100 per cent owned and operated EP 136 permit within the 'Core' Beetaloo Sub-basin. "The terms of the LACA are applicable until termination or expiry of EP 136 and allow for the minimum amount of compensation to be payable to the pastoral leaseholder for the drilling of a well. Proceedings in relation to a LACA for Beetaloo Station is ongoing in the NTCAT and an application has been made for an appeal in the NT Supreme Court for both stations concerning the NTCAT's decision.
"We believe that Australians deserve access to affordable gas as the country transitions towards renewable energy sources. This can only be delivered by developing our significant local gas resources. Without this, Australian households and businesses on the East Coast could be exposed to the increasing price of global LNG, which has already resulted in materially higher prices in Europe."
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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.
Tamboran Resources Limited