Tamboran Resources Ltd. has increased its risk-free best estimate scenario of contingent resources (2C) in Australia’s Beetaloo Basin by billions of cubic feet (bcf) to two trillion cubic feet (Tcf) after revising the results of the drilling
The change, based on the drilling of the Maverick 1V well, represents an overall 2C increase of 32 percent that includes exploration permits (Eps) 76, 98, 117, 136 and 161, the local company said in a filing with the Australian Securities Exchange.
Estimates made by independent third-party resource certifier Netherland, Sewell & Associates Inc. they raised EP 136 (1C) unrisked low contingent resources to 116 Bcf and 2C unrisked to 406 Bcf. EP 161 had its risk-free 1C estimate increased to 91 Bcf and risk-free 2C to 470 Bcf. “In EPs 76, 98, 117, 136 and 161, Tamboran’s total company unrisked 1C contingent gas resources have increased by 37 percent to 458 BCF and unrisked 2C contingent gas resources have increased 32 percent to 2.0 trillion cubic feet,” the regulatory disclosure. he stated
The estimates did not include results from the Shenandoah South 1H (SS1H) well in EP 117. “Tamboran plans to evaluate the resources surrounding the SS1H location after flow testing, which is expected in the first quarter. [first quarter] 2024,” the file said.
“Tamboran continues to demonstrate the ongoing nature of the Mid Velkerri B and C Shale through our 4.7 million acre (gross) position in the Beetaloo Basin. Our strategic focus remains on the western region of the basin, where the SS1H well has successfully intersected the Mid Velkerri at depth and very close to the Amadeus pipeline,” Tamboran managing director and CEO Joel Riddle said in a statement.
“This strategic positioning is expected to support a possible acceleration of production to supply natural gas to the Northern Territory market. This is particularly critical given the recent declines in production from the offshore Blacktip gas field, which is expected to affect the region’s gas supply.”
Tamboran has a 38.75 percent stake and the operation in EP 76, 98 and 117, while Falcon Oil & Gas Ltd. owns 22.5 percent. Tamboran also operates EP 136 with 100 percent ownership. In EP 161, Tamboran has a 25 percent non-operated property.
Last week, EP 117 partners Falcon and Tamboran announced the successful drilling of SS1H. The well was drilled to a depth of 4,300 meters with a horizontal section of 1,074 meters, according to a joint press release dated September 18. 150 kilometers [93.21 miles] between the Amungee NW-2H (A2H) and Beetaloo W-1 wells. This includes a target development area of approximately 1 million acres where shale depth exceeds 2,700 meters [8,858.27 miles]”, said the statement.
SS1H is, according to Falcon, 37 miles (60 kilometers) from the A2H well, in which the partners had already achieved a gas breakthrough. SS1H is deeper than A2H, according to the owners.
The two companies said the June 22 gas flow at A2H had been inhibited, but that the results showed the well could have more reserve for production. “The A2H well achieved a gas breakthrough, however, modeling and independent third-party analysis from a US laboratory identified a potential skin inhibiting gas flow from the stimulated shale,” they said.
“Despite this, gas has flowed at an average rate of 0.97 mmcf/d [million cubic feet per day] over 50 days with about 10 percent of the water used in the simulation program recovered so far, well below other wells in the basin,” the partners said. [joint venture] believes that well flows have not yet established a 30-day initial uninhibited production rate.”
The well was producing about 830,000 cubic feet per day with a water recovery rate of 50 barrels per day, they said. “The hydrocarbon phases recovered are dry gas with 90.4 percent methane and 9 percent ethane,” the companies add.
“The JV believes that the results are not indicative of the underlying production potential of the Amungee Member B Shale, as the Amungee NW-IH achieved flows of >5 mmcf/d in about 1,000 normalized metres. [3,280.84] from the same well platform in 2021″.
Falcon and Tamboran said they will continue to test fluid samples to determine how to clean up the suspected inhibitor.
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