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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.
https://www.afr.com/policy/energy-and-climate/nt-to-anoint-fracking-hydrogen-battery-mineral-hopefuls-20230607-p5dels.
NT to anoint fracking, hydrogen, battery mineral hopefuls
Ben Potter and Brad Thompson
Jun 7, 2023 – 4.01pm
A controversial gas fracking hopeful, two aspiring battery minerals producers, Fortescue Future Industries, and oil and gas giant Total – pushing green hydrogen projects – are among the front runners for roles in the Northern Territory government’s Middle Arm Sustainable Development Precinct.
FFI and TotalEren are the clean energy arms of Andrew Forrest’s Fortescue Metals Group and French oil and gas major Total. The shortlist includes Tamboran Resources, which wants to develop the giant Beetaloo gas field; Tivan, which plans to process vanadium from a giant deposit in northern Western Australia for batteries; and Avenira, which has a phosphate deposit and an in-principle deal to make lithium phosphate batteries with a Taiwanese group.
Northern Territory Chief Minister Natasha Fyles is expected to announce initial partners for the Middle Arm precinct plan within days. James Brickwood
The NT government is expected to announce the next stage of its ambitious Middle Arm Sustainable Development Precinct plan – for which the Albanese government has allocated $1.5 billion of budget funding for port and facilities – within days.
The inclusion of Tamboran Resources, which plans to frack – or hydraulically fracture – the Beetaloo’s vast gas resource, will be hotly opposed by environmental activists but is no surprise given the strong support from the NT and federal governments for the role of gas as a transitional fuel in decarbonisation.
The focus on gas infrastructure will exacerbate concerns the initial mission of the MASDP – to support clean energy and decarbonisation – has been subordinated to the expansion of gas production, which the International Energy Agency says is incompatible with net-zero emissions goals. However, the green hydrogen and battery minerals proponents in the mix may partly alleviate the concern.
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NT to anoint fracking, hydrogen, battery mineral hopefuls
Ben Potter and Brad Thompson
Jun 7, 2023 – 4.01pm
A controversial gas fracking hopeful, two aspiring battery minerals producers, Fortescue Future Industries, and oil and gas giant Total – pushing green hydrogen projects – are among the front runners for roles in the Northern Territory government’s Middle Arm Sustainable Development Precinct.
FFI and TotalEren are the clean energy arms of Andrew Forrest’s Fortescue Metals Group and French oil and gas major Total. The shortlist includes Tamboran Resources, which wants to develop the giant Beetaloo gas field; Tivan, which plans to process vanadium from a giant deposit in northern Western Australia for batteries; and Avenira, which has a phosphate deposit and an in-principle deal to make lithium phosphate batteries with a Taiwanese group.
Northern Territory Chief Minister Natasha Fyles is expected to announce initial partners for the Middle Arm precinct plan within days. James Brickwood
The NT government is expected to announce the next stage of its ambitious Middle Arm Sustainable Development Precinct plan – for which the Albanese government has allocated $1.5 billion of budget funding for port and facilities – within days.
The inclusion of Tamboran Resources, which plans to frack – or hydraulically fracture – the Beetaloo’s vast gas resource, will be hotly opposed by environmental activists but is no surprise given the strong support from the NT and federal governments for the role of gas as a transitional fuel in decarbonisation.
The focus on gas infrastructure will exacerbate concerns the initial mission of the MASDP – to support clean energy and decarbonisation – has been subordinated to the expansion of gas production, which the International Energy Agency says is incompatible with net-zero emissions goals. However, the green hydrogen and battery minerals proponents in the mix may partly alleviate the concern.
FFI hired former NT chief minister Michael Gunner to lead a new northern Australia team last October and is a front runner in the race for land at Middle Arm Point for a green hydrogen project.
Mr Gunner declined to comment on Wednesday on FFI’s prospects for inclusion in any announcement but he told The Australian Financial Review: “Fortescue sees enormous potential in the NT, with world-class solar resources and a community enthusiastic to embrace renewable energy and the employment intensive industries that come with it.”
He continued: “We are backing the NT and have established an office of northern Australia that will work to meet this potential and develop renewable energy projects in the territory.“
Tamboran, Tivan, TotalEren and Avenira declined to comment.
TotalEren signed a non-binding agreement with the NT government last August to build a gigawatt scale green hydrogen project near Darwin backed by a 4 gigawatt solar farm. Kam Ho, TotalEren’s managing director in the Asia Pacific, said the green hydrogen project was a top priority for the group and would include substantial assets within the MASDP.
“We have a very strong working relationship with the NT government and we are moving ahead with the project in a very collaborative manner,” Mr Ho said. “So we hope that we’d definitely be active within the precinct.”
Tamboran got the green light from NT Chief Minister Natasha Fyles to frack the Beetaloo – one of the world’s largest undeveloped gas fields – last month. It plans to start drilling next month.
Tamboran Resources will start fracking the Beetaloo Basin next month. Justin McManus
FFI’s endorsement of the MASDP comes despite Dr Forrest falling out with fellow billionaire Mike Cannon-Brookes over the Sun Cable project in the NT.
Dr Forrest said last month he was unconvinced about the commercial viability of a subsea cable linking Darwin to customers in Singapore and that his privately owned Squadron Energy didn’t participate in the final binding bid process to buy Sun Cable from receivers.
However, any FFI green hydrogen project at Middle Arm Point will need a substantial source of renewable energy.
Quinbrook Infrastructure Partners, Mr Cannon-Brookes’ new investment partner in Sun Cable, told the Financial Review last week that the renewable side of the project was of sufficient scale to power a green hydrogen project and meet Singapore’s stated requirements.
Meanwhile, Japan’s Inpex, which runs the Ichthys LNG plant near Middle Arm Point, will share in a $1 million grant from the Albanese government as part of its efforts to foster clean hydrogen production.
The taxpayer funds will be used by Inpex and its partners – Santos, Xodus and CSIRO – for a feasibility study into the growth potential of clean hydrogen produced from both renewables and fossil fuels with carbon capture and storage in Darwin.
The Darwin Clean Hydrogen Hub joint study will look at opportunities to supply clean hydrogen solutions to domestic and international customers.
Inpex executive Tetsu Murayama said the study would assess the potential of a Darwin-based hydrogen hub and could inform investment decisions.
The joint study is intended to complement the current CSIRO-led Low Emission Hub business case being conducted with Inpex, Santos, Woodside Energy, Eni, Xodus and the NT government.
The Inpex plans in hydrogen include commercialising three or more projects globally by about 2030 with the aim of producing 100,000 tonnes or more of hydrogen/ammonia a year.
Upstream article 5/11/23 Empire energy...
In operation: the Silver City Drilling Rig 40 at the Carpentaria-2H well on EP 187 in Australia’s Northern Territory.Photo: EMPIRE ENERGY
Empire Energy eyes pilot production in newly-reopened Australian shale play
Final investment decision targeted in 2023 for Carpentaria gas production
11 May 2023 23:05 GMT UPDATED 11 May 2023 23:05 GMT
By Amanda Battersby in Singapore
Australia-listed junior Empire Energy is racing to step up a gear towards production at its Northern Territory assets now the territory’s government has finalised the Beetaloo regulatory framework.
Empire is progressing front-end engineering and design work, field development planning, Indigenous and regulatory approvals, gas sales and pipeline transportation negotiations for its proposed Carpentaria pilot project on EP 187, with the aim of taking the final investment decision later this year.
Northern Territory gas exploitation: ‘Best outcome’ or ‘rotten decision’? You decide
Read more
Independent reservoir engineering forecast production analysis indicates that three-kilometre horizontal wells in the Carpentaria area of EP 187 could ultimately deliver about 6 billion cubic feet of gas per well on a 50% recovery basis and about 8 Bcf on a 10% recovery basis, the operator said.
“This represents a potential upstream development cost of A$2 to A$3 per gigajoule in future development scenarios assuming A$15 million to A$20 million per well capital expenditure,” Empire said.
The company has engaged consultants Netherland, Sewell & Associates to prepare an updated resource assessment for its EP 187 asset, which is due before the end of June.
The regulatory framework put in place by the NT government is now among the most extensive and robust in the world and will allow the safe and sustainable development of the Beetaloo’s abundant natural gas resources, Empire said.
The company added that this gives management the confidence to accelerate its investment decision and planning processes as it moves towards pilot production.
“Building on the encouraging results of our exploration activity over the last four years, we look forward to submitting applications for all required approvals to enable us to move into gas production and the delivery of much-needed new gas supply to the Australian domestic market, and subsequently to increase liquefied natural gas exports, already the NT’s largest source of foreign income and a significant contributor to federal government revenues,” Empire managing director Alex Underwood said.
Last week, the NT government announced the finalisation of all 135 recommendations of the 2018 scientific inquiry into hydraulic fracturing in the territory chaired by Justice Rachel Pepper, effectively establishing a platform for approval of gas production in the Beetaloo sub-basin.
“After an extensive process of review and reform, industry participants and their investors now have certainty on how the NT government will regulate this vital industry,” Underwood added.
Meanwhile, in the western Beetaloo, Empire has secured a groundwater extraction licence to supply water for its planned 2D seismic survey, drilling and hydraulic stimulation activities in the gas discovery area within its wholly owned EP 167 and EP 168.
The company plans to soon resubmit its environment management plan for this work and, once its EMP and Land Access & Compensation Agreements are completed and approved, Empire will be able to acquire up to 376 line kilometres of 2D seismic and construct up to six well pads with horizontal stimulated wells.
Upstream article 5/11/23...
Onshore asset: Tanumbrini drilling on Beetaloo basin Block EP 161 in Northern Territory, Australia.Photo: TAMBORAN RESOURCES
Tamboran eyeing Beetaloo shale production as early as 2025
Most powerful land rig in Australia has arrived on location
11 May 2023 23:05 GMT UPDATED 11 May 2023 23:05 GMT
By Amanda Battersby in Singapore
Australian operator Tamboran Resources is looking to step up its investments in the Northern Territory’s Beetaloo basin, which hosts low carbon dioxide gas resources.
Hot on the heels of the NT government’s recent decision to reopen the door to exploitation of the basin’s giant onshore gas resources, Tamboran last week welcomed the arrival of the Helmerich & Payne (H&P) super spec FlexRig(R) Flex 3 rig to Australia — a drilling unit that the operator said would deliver “a step change in drilling efficiency in the Beetaloo basin”.
Northern Territory gas exploitation: ‘Best outcome’ or ‘rotten decision’? You decide
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“Tamboran welcomes the Northern Territory government’s announcement that the 135 Pepper Inquiry recommendations have been fully implemented. This gives industry the certainty to import and invest in the latest shale technology and equipment, including H&P FlexRig(R) rig,” Tamboran chief executive Joel Riddle said.
“With the government’s completion of the Pepper Inquiry, Tamboran is planning on moving rapidly towards production as early as 2025.”
Once operational, this onshore drilling rig will be the most powerful rig in Australia, capable of drilling more than 3000-metre horizontal sections within the Mid Velkerri B shale in the higher quality, deeper shale formations of the Beetaloo.
“With Beetaloo gas containing approximately 3% to 4% reservoir carbon dioxide, we expect the reduction in Scope 1 and 2 emissions will be more cost efficient when compared to offshore gas fields that can hold up to 20% associated carbon dioxide,” Riddle said.
Tamboran has already initiated discussions with potential gas buyers for volumes of 200 to 300 terajoules of gas per day from later this decade.
“Contracting this gas will be critical in enabling us to approve our 1 billion cubic feet per day development plan,” he added.
Riddle said that through the company’s strategic alliance with H&P and the possibility of importing four more rigs into Australia, commercialisation of shale gas from the Beetaloo basin has the potential to reduce current energy costs with generally lower associated emissions than existing coal and higher reservoir CO2 gas fields.
Australia-listed Tamboran has its sights on developing low CO2 unconventional natural gas resources in the Beetaloo sub-basin within the Greater McArthur basin in NT.
The company’s key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197, which are located in the Beetaloo sub-basin.
“The development of the Beetaloo basin, one of the world’s largest undeveloped shale gas plays, has the potential to transform the Northern Territory,” Riddle said.
“It is anticipated that thousands of direct and indirect jobs will be created locally, and hundreds of millions of dollars in royalties will be paid to Traditional Owners and the Northern Territory government,” he added.
Australian Budget Supports Gas and Hydrogen Development
Wednesday, May 10, 2023
© Lukasz Z / Adobe Stock
Australia’s federal government has released its 2023 Budget, with the offshore industry saying it listened to industry concerns.
Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch said the new Future Gas Strategy showed the government recognised the urgent need for a strategy to secure new gas supply to avoid shortfalls in coming years.
“New gas supply is essential to keep the lights on, put downward pressure on prices and deliver substantial economic benefits in the transformation of our energy system for net zero,” McCulloch said. “The national strategy announced tonight is a response to independent reports and authorities warning of gas supply shortfalls and allows for a coordinated policy response.”
The Budget allocates A$2 billion to accelerate the development of low-carbon hydrogen in Australia and to catalyse clean energy industries. Australia already has the largest pipeline of renewable hydrogen projects in the world.
McCulloch said: “Low-carbon hydrogen has a critical role to play in reaching net zero, in particular in hard-to-abate industries and manufacturing. The oil and gas sector is pivotal in scaling up and rolling out low-carbon hydrogen in Australia and globally, with natural gas combined with carbon capture representing the most developed and lowest cost pathway to low-carbon hydrogen available today.”
The Budget also recognised the importance of CCUS, with a review of regulations to enable CCUS investment – as highlighted by APPEA in its 2023-24 Federal Budget Submission. However, the McCulloch says the Budget fell short of committing to a national CCUS roadmap in partnership with industry to provide the clear policy direction needed to promote Australia as a regional carbon storage leader. “Global momentum for CCUS is growing, and Australia must not miss the emissions reduction and economic opportunity of an emerging CCUS industry that creates new jobs and investment.”
APPEA also welcomed the review of environmental management regulations for offshore energy to provide clarity for major supply projects.
Tamboran targets July for HP rig:
Beetaloo developer to begin drilling within weeks as rig arrives
Colin PackhamEnergy and resources reporter
May 5, 2023 – 4.08pm
Tamboran Resources will begin drilling in the Beetaloo Basin in July after a large rig arrived from the United States, accelerating plans to capitalise on the Northern Territory’s approval of fracking, in what its chief executive described as “Australia’s greatest carbon emitting reduction opportunity”.
The NT government this week allowed fracking in the Beetaloo, in a decision the country’s oil and gas industry said would aid Australia’s $2 trillion economy and improve energy security but has ignited a wave of opposition from environmentalists and some Indigenous groups.
The Northern Territory has approved gas development in the Beetaloo Basin. Justin McManus
Tamboran said a large drilling rig from its partner Helmerich & Payne had arrived in Darwin to enable exploration.
“We expect to begin drilling with this rig in July,” Tamboran chief executive Joel Riddle told AFR Weekend.
“This rig will be the most powerful rig in Australia. It will be capable of drilling more than 3000 metre horizontal sections in the main shell plate. This is a big deal because the longer horizontal wells that we can drill with this rig, the more reserves that we can recover per well and it will be a real driver to bring down well costs and also improve the economics of the Beetaloo development.”
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Tamboran’s drilling is the first stage of the company’s plans in the Beetaloo. It expects to begin producing about 20TJ of gas a day in 2024. Should it secure a production licence from the NT government and fresh agreements with the local Indigenous landowners, Tamboran could expand production to about 100TJ a day.
Tamboran and other Beetaloo developers Empire Energy and Santos said developing in the region would improve domestic supplies, much needed amid forecasts for a looming east coast gas shortage.
It is, however, unclear how many volumes would remain in Australia or how shipments could be distributed to the east coast market, with existing export infrastructure located in Darwin.
The development of the industry could be extremely lucrative for the NT through royalties, but drilling is a lightning rod for opponents to any new gas developments in Australia. Opposition to gas among voters has risen steadily, but the fossil fuel industry insists gas can meet environmental and energy security goals.
“Environmentalists are looking to reduce carbon emissions in Australia, and around the world. If we are serious about that goal, then the biggest thing to move the needle on reduction of carbon emissions is Beetaloo,” Mr Riddle said.
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“The gas is 2 per cent to 3 per cent CO2, and this could replace coal generation, which has much higher carbon emissions. It is a no-brainer. The Beetaloo is Australia’s greatest carbon emitting reduction opportunity.”
The comments are likely to be rejected by environmentalists, who highlight methane emissions, and stress Australia has sufficient gas reserves to meet its own energy needs. But with rapid closures of coal power stations occurring, concern is growing about how to ensure sufficient supplies.
Renewable energy proponents insist Australia should focus on developing renewable energy generation and storage projects, which would negate the need for gas projects.
Grid-scale renewable energy projects and transmission lines have been beset by delays and cost blowouts. Smaller projects and rooftop solar generation continue to grow at pace, however.
Northern Territory clears way for fracking to begin in Beetaloo Basin
Environmental groups and scientists say move will have an unacceptable impact on the climate and have called for ban.
Lisa Cox
Tue 2 May 2023 23.50 EDT
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The Northern Territory government says it is satisfied the recommendations of an independent inquiry into fracking have been met, clearing the way for gas production and the expansion of wells across the Beetaloo basin. Guessing the eco-terrorist will sue by the end of the day.
Tamboran wins court case, HP drill rig arrives in Darwin:
Beetaloo Basin cattle company loses Supreme Court bid to stop fracking exploration
ABC Rural / By Daniel Fitzgerald
Posted Thu 20 Apr 2023 at 10:34pmThursday 20 Apr 2023 at 10:34pm, updated Fri 21 Apr 2023 at 12:16amFriday 21 Apr 2023 at 12:16am
A gas exploration well in the desert, surrounded by a drill rig and equipment.
Tamboran Resources and its subsidiary Sweetpea have a number of exploration wells across the Beetaloo Basin.(Supplied: Tamboran Resources)
A gas company will be able to continue exploration in the Beetaloo Basin after a cattle company's appeal to stop the activity was dismissed by the Northern Territory Supreme Court.
Key points:
Rallen says it is weighing up its options after the decision
The court's ruling sets a legal precedent for land access laws in NT
Tamboran unloaded the "most powerful" drill rig in Australia in Darwin this week
Rallen Australia, owned by the Langenhoven-Ravazotti family, had sought to overturn a February 2022 NT Civil and Administrative Tribunal decision that allowed Tamboran Resources' subsidiary Sweetpea Petroleum to come onto Tanumbirini Station to explore for gas.
Justice Peter Barr dismissed all eight grounds of appeal that Rallen's lawyers had argued.
The case was seen as a precedent for legal interactions between pastoralists and gas companies because it was the first to test mandatory land access laws introduced in the NT in 2021.
Tamboran chief executive and managing director Joel Riddle said in a statement that he was "pleased with the NT Supreme Court's ruling" and was looking forward "to working closely with all our stakeholders in progressing the development of the Beetaloo Basin in a safe and responsible manner".
"As the first challenge of the NT government's changes to the legislation and regulations permitting access for exploration purposes, the decision sets an important precedent for future operations across the Beetaloo Basin," he said.
"We are pleased to lead the way by securing this important precedent and ensure that the benefits of the decision will extend to many stakeholders."
A man with short, greying hair and a woman with long, blonde, frizzy hair stand outdoors, looking serious.
Pierre Langenhoven and Luciana Ravazzotti are staunchly opposed to fracking on their cattle stations.(ABC News: Hamish Harty)
Rallen weighs appeal options
Rallen has fiercely opposed any gas exploration on its properties and director Pierre Langenhoven previously declared the pastoral and gas industry "cannot coexist".
Mr Langenhoven said Rallen would "consider this decision and our appeal options" for the Supreme Court decision.
"We are disappointed in the decision, as the land access agreement provides minimum protections to pastoralists and puts all the risk and all the cost onto the pastoralist," he said in a statement.
"This sadly sets a precedent for poor quality and punitive agreements moving forward."
Heavy earthmoving equipment lined up in scrubland.
Sweetpea started exploration works on Tanumbirini Station in May 2022.(Facebook: Nurrdalinji Aboriginal Corporation)
Sweetpea/Tamboran entered Tanumbirini in May 2022 under the terms of its exploration permit, but against the wishes of Rallen and some traditional owners.
Since then, Mr Langenhoven said he felt like he had "lost control" of the part of Tanumbirini within Sweetpea's permit area.
"I cannot protect the station and my cattle from the impacts of fracking, all I can do is monitor and seek compensation after the damage is done," he said.
Rallen Australia will receive a minimum of $15,000 compensation per gas well drilled on the property as a part of its land access agreement with Sweetpea.
Drill rig equipment being loaded onto a ship at a port.
The Helmerich & Payne drill rig was sent from the Port of Houston and unloaded in Darwin this week.(Supplied: Tamboran Resources)
Australia's 'most powerful' rig
This week Tamboran unloaded what it has labelled Australia's "most powerful onshore drilling rig" from a ship at Darwin Port.
Anti-fracking protesters gathered out the front of the port on Wednesday to voice their opposition to the use of the drill rig and fracking in the Beetaloo.
Tamboran said the drill rig, imported from the US, was capable of drilling horizontal wells more than 4,000 metres in length.
Tamboran has contracted the rig for a minimum of two years and is currently "evaluating the opportunity" to use it to drill a 3,000 metre horizontal section in an existing well on Tanumbirini Station in mid-2023.
The NT government is expected to make a final decision on whether to allow commercial development of the Beetaloo Basin in the coming weeks.
Words of wisdom: Woodside Energy chief executive Meg O'Neill. Photo: APPEA
Woodside chief blasts extremists that threaten investment in Australia’s gas industry
Meg O’Neill also urges investment and regulatory certainty amid twin goals of energy security and decarbonisation
23 April 2023 7:14 GMT UPDATED 23 April 2023 7:14 GMT
By Amanda Battersby in Singapore
Woodside Energy chief executive Meg O’Neill has slammed extremists who are doing the damnedest to scupper under development and new gas projects in Australia, the region’s largest liquefied natural gas exporter.
Addressing the National Press Club in Canberra, O’Neill said that development of Australia’s gas industry has only been possible with the support of international investors and customers looking to secure their own energy supplies. But now they are questioning whether Australia still wants their investment.
“A vocal minority wants to shut down the industry and the jobs and livelihoods that go with it. They have deep pockets and are using both protest action and the courts to create uncertainty and destabilise regulatory processes to frustrate existing and new projects,” she said.
“We respect every Australian’s right to express their opinion – and we share the commitment to decarbonisation - but extremism is not the answer. We need confidence in stable regulatory outcomes, or we risk choking our energy industry, impacting both domestic and international supply,” added O’Neill.
“This concerns our regional partners, who depend on current Australian gas projects to help them meet their decarbonisation commitments and to keep the lights on in Asian megacities.”
O’Neill said that the challenge, as she sees it, is for Australia to use its vast natural gas resources for three interrelated goals: To provide affordable and reliable energy for Australians, to maintain strategic partnerships and regional energy security, and to progress global decarbonisation.
“We want to develop new projects in Australia, across both hydrocarbons and new energy opportunities, but that will only be possible if policy settings provide the certainty to underpin long-term investment.”
Securing future investment
During 2022, the world experienced what the International Energy Agency has termed “the first truly global energy crisis” and Australia, for all its vast natural resources, was not immune.
“Those who can least afford it have felt it most acutely, sometimes having to choose between food and heating through winter. This should not be happening in Australia. Australians should be able to expect reliable energy. That needs to come from having the right investment climate - rather than arbitrary market intervention - and the right honest conversations between all participants in the energy system,” said O’Neill.
But, she said, a longer-term view is needed to ensure new supply will be there to meet anticipated demand.
“Woodside and other companies are actively considering what we might be able to do to help - from infrastructure to enable LNG imports, to buildout of gas storage - but we also know these can only be progressed in concert with government.
“[This] requires a clear investment framework and regulatory certainty to attract the capital from international markets that is needed for large-scale projects.”
Woodside's 2022 A$2 billion-plus tax bill
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The same partners who invested in Australia’s gas projects can provide the capital to develop lower-carbon hydrogen and renewable projects, but only if they consider it a secure investment, added O’Neill.
“For Australia to remain an attractive destination for global capital, fiscal and regulatory certainty is paramount.
“We urge the government, in any changes to the tax framework, to consider the long-term and preserve Australia’s ability to attract the next generation of investment, jobs and energy supply,” said O’Neill.
“In terms of regulatory certainty, agreement on clear processes and response times for project approvals is essential to unlocking reliable supply. Otherwise, energy investment will find another home, taking jobs and opportunities with it.”
Gas in tandem with renewables
Globally, we are going to need to use all the tools to address climate change while advancing developing economies, Woodside’s chief executive said.
“That’s going to require rapid scale-up of renewables and investment in ongoing gas supply as existing gas fields deplete.”
Even in its Net Zero Emissions scenario, the Paris-headquartered IEA has estimated an average of US$365 billion of upstream oil and gas investment is needed every year to 2030, and US$171 billion every year thereafter to 2050.
“When used to generate electricity, natural gas emits around half the life cycle emissions of coal. Gas is a flexible source of energy and provides a stable baseload,” she added.
Australia’s federal government is targeting increasing the share of renewables in the electricity grid to 82% by 2030, leaving an 18% gap that could be filled by natural gas. However, today gas-fired power only accounts for 7% of the national energy market.
O’Neill admitted that Australia’s gas industry needs to do more to reduce emissions but that it is moving in the right direction.
“We employ engineers – creative, practical problem-solvers, who are prioritising this challenge – and commercial analysts, who are figuring out ways to finance it,” she said.
“We have geologists, who used to explore for new oil and gas reservoirs, who are now looking at how we can safely inject and store carbon dioxide in depleted reservoirs.”
However, in the absence of certainty at a national level, Australian states have implemented complex and conflicting regulations for emissions reduction, moving away from the concept of tackling the lowest-cost abatement options first, and adding to the cost of doing business… not just for energy producers, but for all industrial segments, O’Neill commented.
Getting it right in future
“You might guess from my name that I’m of Irish heritage. I grew up in Boulder, Colorado, (in the US) but my Nanna grew up in a village in County Mayo, in Western Ireland, with no electricity - relying on a peat fire for heating, cooking and light,” O’Neill shared.
“As a society, we have come a long way since then, in just two generations. And we should not be regressing. We should instead be extending access to electricity to hundreds of millions of people in the developing world who still live without it. To do that, we need new supplies of affordable and reliable energy.”
However, against that backdrop, there is the need to decarbonise which will require the rapid scale-up of renewables alongside investment in ongoing gas supply as existing gas fields deplete.
Woodside is aiming to spend US$5 billion by 2030 to progress new energy opportunities and lower-carbon services.
Admitting the Australian company – which was founded in 1954 – historically has not always “got it right” in its relations with First Nations peoples, O’Neill said the company is on a journey in its relations with First Nations peoples and “working to get it right” by listening to and learning from these peoples.
“For Woodside, a big part of this is working with the Traditional Owners of Murujuga, in northern Western Australia, where our largest Australian operations are based,” she said
News from Australia: APPEA
Gas will play critical role in kick-starting low emissions hydrogen: APPEA chief executive
IEA reckons more than 25% of hydrogen in 2050 will come from natural gas utilising CCUS
13 April 2023 22:00 GMT UPDATED 13 April 2023 22:00 GMT
By Amanda Battersby in Singapore
Australia’s oil and gas industry believes the federal government’s focus on hydrogen is an important step on the path to net zero and one that paves the way for new economic opportunities for the nation.
The Australian Petroleum Production & Exploration Association (APPEA) on Thursday welcomed the release of the 2022 State of Hydrogen report amid a review of the national hydrogen strategy.
APPEA chief executive Samantha McCulloch said the gas sector would play a critical role in kick-starting low-emissions hydrogen.
“Natural gas combined with carbon capture, utilisation and storage (CCUS) is currently by far the most affordable pathway low-carbon hydrogen production — meaning significantly more emissions reductions per dollar today,” she said.
“This paves the way for all low-carbon hydrogen pathways, enabling faster scale-up to support economy-wide decarbonisation.”
Inpex and Jogmec team up on offshore CCS Down Under
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Under the International Energy Agency’s Net Zero by 2050 scenario, more than a quarter of hydrogen in 2050 will come from natural gas utilising CCUS.
McCulloch said: “We share the nation’s commitment to lowering emissions to get to net zero across the economy by 2050 and hydrogen will be a key tool to get there.
“The gas sector has the expertise, infrastructure and commercial relationships necessary to make the hydrogen economy a reality and are already investors in low-carbon hydrogen development.
“As the government reviews its national hydrogen strategy, it’s critical we keep all options on the table to make sure we are rolling out hydrogen at the pace and scale required,” she added.
“Leveraging the most affordable low-carbon hydrogen pathways not only makes net zero more achievable but also minimises the impact on the costs of doing business for Australian manufacturers and industry as they align with our climate targets.”
APPEA has called for the identification and advancement of priority hubs for low-carbon hydrogen and CCUS in its 2023-2024 federal budget submission.
Eco-terrorist government wins again...#3: https://kfgo.com/2023/03/26/australia-edges-closer-to-big-emissions-reduction-bill-with-hit-to-gas-investments/
Eco-terrorist government wins again: The updated legislation also requires all new gas projects in the Beetaloo Basin to have net zero carbon emissions and new gas fields supplying existing liquefied natural gas (LNG) plants to have net zero reservoir emissions, imposing new costs.
“Today, we are a step closer to achieving net zero by 2050,” Energy Minister Chris Bowen said.
Support from the Greens, who originally wanted to ban all new fossil fuel projects, leaves the government short two votes in the Senate, where it is wooing independents.
The plan, due to take effect on July 1, aims to make about 215 oil, gas, mining and manufacturing facilities that annually emit more than 100,000 tonnes of carbon dioxide-equivalent (CO2-e) cut their emissions by 30% over the next seven years.
Under the revised legislation, projects such as the massive Browse field that Woodside Energy wants to develop would have to have carbon capture and storage to achieve net zero.
Shares in Woodside fell 2.3%, while Tamboran Resources, which is looking to develop a project in the Beetaloo, fell 6.7% in a broader market that was up 0.2%.
The government said it would tip in A$400 million ($266 million) to help the cement, steel and aluminium industries decarbonise.
New presentation: Australian Domestic Outlook Conference. https://www2.asx.com.au/markets/company/tbn H&P flex rig on it's way too the Beetaloo basin. Spud target June 2023.
Amungee 2H frack completed:
Tamboran Resources completes 25-stage stimulation program in Beetaloo Basin; 30-day initial production flow rates expected next quarter
19:22 Tue 21 Mar 2023
Jonathan Jackson
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Tamboran Resources Ltd
ASX:TBN
Tamboran Resources Ltd - Tamboran Resources completes 25-stage stimulation program; 30-day initial production flow rates expected in Q2
Tamboran Resources Ltd (ASX:TBN) has completed its 25-stage stimulation program at Amungee 2H well in the 38.75% owned and operated EP 98 permit of the Beetaloo Basin in the Northern Territory of Australia.
This is the first well to be finished using the optimal 5-½-inch casing within the Mid-Velkerri ‘B Shale’ and the total expenditure for the A2H well to date is around $32 million, including drilling and stimulation.
This is within 5% of budget estimate after additional scope to the well was undertaken by Tamboran post-acquisition.
The company now expects to announce 30-day initial production (IP30) flow rates during the second quarter of 2023.
"Worked together seamlessly"
“I am extremely proud of our team being able to deliver a project of this magnitude, despite taking on operatorship of the well days before spudding and bringing forward the stimulation program by more than three months,” Tamboran’s COO Faron Thibodeaux said.
“Our team and contractors worked together seamlessly, including the technical team in the US and new employees following the acquisition, to complete this milestone.”
About the stimulation program
Tamboran’s program was a 25-stage program across a 1,020-metre horizontal section within the Mid-Velkerri ‘B Shale’.
Approximately 2,125 pounds per foot of proppant was placed along the completed horizontal section, an increase of around 55% compared to the Tanumbirini 2H (T2H) and 3H (T3H) wells in the Santos-operated EP 161 permit (Tamboran 25%, non-operator).
Proppant was placed using 5-½-inch casing and based on modern US shale design, which leverages the experience of Tamboran’s US technical team and incorporates learnings from the drilling and stimulation of the T2H and T3H wells.
The modern design is expected to result in improved flow rates from the extended production test during 2023.
Significant milestone
Tamboran Resources managing director and CEO Joel Riddle said: “The completion of the program at A2H is a significant milestone for Tamboran in the Beetaloo Basin, being the first well to be completed using the optimal 5-½-inch casing within the Mid-Velkerri ‘B Shale’.
“I commend the Tamboran team and our contractors for the safe and successful completion of the program, which was achieved in the middle of the Northern Territory’s wet season.
“The team delivered a significant increase in sand into the shale formation, when compared to the T2H and T3H wells in the non-operated EP 161 permit. We expect this will further demonstrate economic flow rates and commercial viability of the play.
“The A2H well will shortly begin to flow back stimulation fluid before being shut-in for installation of production tubing. This is expected to deliver optimal flow rates during the extended production testing, which will provide key data regarding decline curves and estimated ultimate recovery.”
Tamboran’s assets
Tamboran is the largest acreage holder and operator with ~1.9 million net prospective net acres in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia.
The company is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing the significant low CO2 gas resource within the basin.
Its key assets include a 25% non-operated working interest in EP 161, a 100% working interest and operatorship in EP 136, EP 143 and EP(A) 197 and a 38.75% working interest and operatorship in EPs 98, 117 and 76 which are all located in the Beetaloo Basin.
Tamboran is focused on the development of the proposed EP 98 Pilot Development, targeting first production by the end of 2025
Empire announces Beetaloo flow rates and operations: ABN Newswire) Empire Energy Group Ltd (ASX:EEG) (OTCMKTS:EEGUF) report that the Carpentaria-3H ('C-3H') has been flow tested for 27 days and is currently shut in for soaking (the practice of shutting in a well for a period following fracture stimulation to maximise long-term productivity). Gas production rate has ranged between 2.3 million standard cubic feet per day ('mmcf / day') and 5.7 mmcf / day with an average of 2.6 mmcf / day. Flow rates are yet to be optimized by the shut-in and soaking. Empire believes that higher flow rates will be achieved when the well is reopened.
Carpentaria-2H ('C-2H') has been brought back online to test the benefit of soaking with excellent results. A sustained average gas flow rate of 3.24 mmcf / day over eight days ('IP8') has been achieved over the 927-metre stimulated horizontal section, approximately 21% higher than the initial IP8 with a lower rate of decline.
This is a normalised flow rate of 3.5 mmcf / day per 1,000 metres at C-2H, demonstrating that soaking has had a material beneficial impact on flow rates, consistent with productivity improvements seen in other wells in the Beetaloo Sub-basin and in US shale gas basins.
Empire intends to continue flow testing C-2H to develop an early production type curve that will be incorporated into Empire's ongoing Front-End Engineering and Design ('FEED') process. Management is working towards pilot project Final Investment Decision ('FID') this year (subject to financing, gas sales agreement, regulatory approvals and Board approval).
Petrophysical interpretation of Carpentaria-4V ('C-4V') data has confirmed that net pay in the Middle Velkerri B is 20% greater and ~150 metres deeper than at the C-2H / C-3H location. C-4V formation evaluation results are being incorporated into the updated independent resource assessment that is expected to be complete in the coming weeks.
Current cash balance is $18.2 million with recent drilling and stimulation projects coming in well under budget. The $15 million credit facility is available but undrawn. Final Beetaloo Cooperative Drilling Program progress payment of ~$7.6m is expected to be received soon.
An investor webinar including Q&A will be conducted today at 11am AEDT during which Managing Director Alex Underwood will provide an overview of these results and investors can ask questions. Dial in details can be found below.
Comments from Managing Director Alex Underwood:
'The Empire team is highly encouraged by the stabilised flow rates we have achieved at C-2H. At this stage, the rates appear to exceed thresholds that others in the Beetaloo have proposed as being commercial. Empire has high earnings leverage due to the reduced capital costs we enjoy at shallower depths than other parts of the Beetaloo and high net revenue interest (working interest adjusted for royalties) in our Beetaloo properties.
This result has significantly de-risked EP187 and propels us towards a final investment decision on our pilot project later this year. We are rapidly optimising how to drill, stimulate and complete the Middle Velkerri B shale, and expect further improvements as we drill future pilot wells that, along with C-2H and C-3H, will generate production revenue (subject to FEED, sales and transportation agreements, financing, regulatory approvals and FID).
Netherland, Sewell & Associates are due to upgrade our EP187 Contingent Resources including our recent C-4V results. We anticipate a material increase.
C-3H has remaining fluid that the Empire team wants to remove to see the full C-3H well result. We expect soaking to reduce water saturation and to increase gas pressure that will help to remove the remaining fluid, in addition to providing the other matrix gas benefits seen in C-2H.
The global gas market remains in serious structural deficit. New sources of responsibly sourced, low CO2 gas are urgently required to avoid more seasonal price spikes. The IEA recently forecast that LNG demand from the world's largest importer, China, is expected to increase by up to 35% this year as its economy reopens, but new sources of supply are not coming onstream quickly enough. The NT gas market is undersupplied due to production issues at legacy fields, so our short-term opportunity is to support the NT Government to ameliorate forecast gas shortfalls by bringing our pilot project online quickly.
These flow testing results reinforce our commercialisation strategy.'
CARPENTARIA-2H UPDATE
C-2H was reopened on Friday 24th February after ~5 months of shut in to soak. Soaking is the practice of shutting in a shale gas well for a period following fracture stimulation to seek to improve long-term productivity through redistribution and / or interaction of the residual water with the rock. Productivity improvements have been achieved at other Beetaloo wells and in analogous US shale basins following the execution of such a strategy.
After reopening C-2H, production quickly built to over 3 mmcf / day and is now flowing at 3.25 mmcf / day. This represents a 33% increase compared to the corresponding flow rate after the first 8 days of pre-shut-in initial flow, a material improvement.
The well has been reopened with a restricted choke, with a current wellhead pressure of over 336 psi, which is double the wellhead pressure after the previous corresponding IP8 period.
While lowering this flowing wellhead pressure would produce higher short term gas flow rates, Empire is maintaining a high back pressure and carefully managing the flowback to ensure full fracture connectivity is maintained. The gas is being produced up the 4 1/2' casing without any artificial lift. No well intervention or optimisation was undertaken prior to restart, as the gas rate is sufficient to lift wellbore fluids in 4 1/2' casing.
Third party flowback analysis carried out by Subsurface Dynamics Inc, an independent advanced reservoir engineering and geoscience firm based in North America, indicates that the material improvement in C-2H flow rate has resulted from reduced fractured area water saturation following water imbibition into the surrounding reservoir, removing water blockages to gas flow.
This confirms that Empire's soaking strategy has been effective and is improving gas flow rates which is likely to improve total gas recovery over the life of the well. It also confirms that the increased C-2H flow rate can be used to infer greater well productivity in development well planning.
C-2H well testing is continuing to confirm the longer-term benefits of soaking and to develop an upgraded IP30 type curve.
CARPENTARIA-3H UPDATE
C-3H has flowed at rates of up to 5.7 mmcf / day with an average production rate over the first 27 days of over 2.6 mmcf / day. The initial flow period showed an even shallower level of rate decline than seen on the initial C-2H flowback, indicating that the well is still cleaning up.
C-3H flowed up 4 1/2' casing without the need for production tubing or artificial lift.
C-3H is now shut-in to test whether soaking, now demonstrated as highly effective at C-2H on the same well pad, will improve productivity.
The soaking of C-3H is expected to provide the fractured area matrix improvements seen in C-2H and in addition remove water by imbibition which will reduce the flowing bottom hole pressure and likely improve gas flow rates.
Higher water production during the initial flowback (due to pumping twice as much water to place twice as many fracture stimulation stages) created an estimated 20% higher bottom hole flowing pressure at the heel of the well compared to C-2H due to the density of the fluid lifted, which has impacted gas flow rates. In addition, the long undulating horizontal section in C-3H resulted in fluid and pressure surges during production ('slugging'). This slugging is likely to have created additional back pressure along the wellbore which has also contributed to gas production limitations.
While Empire expects the shut-in period and soaking to remove remaining fluids, there are alternative intervention options that are available if required. Any such intervention would be funded from cash at bank.
Early chemical tracer data from the international testing laboratories shows that the whole wellbore is contributing to gas flow.
Flowback analysis has been performed by Subsurface Dynamics Inc on the initial flow data that demonstrates that the connected fracture area is twice the size of C-2H stimulated area and that the majority of the fracture stages appear to be contributing along the wellbore based on the total stimulated reservoir (rock) volume.
C-3H was drilled and stimulated through a range of rock qualities within the Middle Velkerri B Shale and tracer data confirms that the higher graded rocks have produced at higher rates providing further definition over the future target reservoir window to optimise production.
C-3H trialed several fluid systems and ongoing tracer analysis is expected to provide further evidence on fluid selection and optimization.
C-3H was drilled and completed for $5.9 million below the risked budget.
CARPENTARIA-4V UPDATE
Early petrophysical interpretation indicates the net pay at the recently drilled C-4V well within the Carpentaria East Area is materially greater than the earlier drilled C-1V, C-2H and C-3H wells.
The greater depth of formation at C-4V is expected to improve gas in place and reservoir pressure. Porosity, gas saturation, and gross thickness are interpreted to be highly uniform between the drilled locations.
Further work will be carried out to determine whether the increased pay within the Carpentaria East area is due to lateral depositional changes or through post-deposition processes. This will help resolve lateral reservoir improvements throughout the permit. Sidewall cores taken from the Middle Velkerri A, Intra A/B, B and C shales during drilling have arrived in the USA and will be used for further calibration analysis.
BEETALOO COOPERATIVE DRILLING PROGRAM
Empire's wholly owned subsidiary, Imperial Oil & Gas Pty Limited, has three replacement grant agreements with the Australian Government under the Beetaloo Cooperative Drilling Program (the 'Program'). Total grant funding of up to $19.4 million is being provided which offsets 25% of the cost of seismic acquisition and the drilling, hydraulic stimulation and flow testing of three horizontal wells (C-2H, C-3H and C-4V) in EP187.
Empire has submitted its final progress reports under the Program and expects to receive final grant funding under the Program of ~$7.6 million (ex-GST) in the coming weeks.
CONFERENCE CALL AND WEBCAST AT 11AM (AEDT) TODAY
Managing Director Alex Underwood will present via conference call and webcast commencing at 11am AEDT today. Details are as follows:
For Participants
Pre-Registration Link:
Conference Call:
The conference call can be accessed by the telephone numbers below and quotation of the specified Conference ID number.
Conference ID number: 60701
Australia: +61 (2) 9133 7104 (can be used if dialing from international location)
For Listen Only
*To view tables and figures, please visit:
(asx:eeg ) (OTCMKTS:EEGUF) holds over 14.5 million acres of highly prospective exploration tenements in the McArthur and Beetaloo Basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds 80% has very considerable conventional and unconventional hydrocarbon potential. The Beetaloo sub-Basin, in which Empire holds a substantial position, has independently assessed world class hydrocarbon volumes in place with a major ramp up in industry activity underway to appraise substantial discoveries already made by major Australian oil and gas operators.
Empire Energy is an experienced conventional oil and gas producer with operations in the Appalachia region (New York and Pennsylvania). Empire has been successfully developing and producing oil and gas since 2006.
Empire Energy Group Ltd E: T: +61-2-9251-1846 F: +61-2-9251-0244 WWW:
MENAFN05032023000111011020ID1105709152
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Looks like the Eco-terrorist will win again???:. Beetaloo gas fracking could start soon, despite NT government delay in implementing Pepper inquiry recommendations https://www.msn.com/en-us/money/markets/beetaloo-gas-fracking-could-start-soon-despite-nt-government-delay-in-implementing-pepper-inquiry-recommendations/ar-AA16CP2s?ocid=FinanceShimLayer.
Falcon Oil and Gas Q&A video from 1/18/23 is up and running: https://www.investormeetcompany.com/falcon-oil-gas-ltd/register-investor
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