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Tamboran Resources Ltd. has increased its unrisked 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 reviewing drilling results.
The change, based on the drilling of the Maverick 1V well, represents an overall 2C increase of 32 percent involving exploration permits (Eps) 76, 98, 117, 136 and 161, the homegrown company said in a filing with the Australian Securities Exchange.
The estimates made by independent third-party resource certifier Netherland, Sewell & Associates Inc. raised EP 136’s unrisked low contingent resources (1C) to 116 Bcf and unrisked 2C to 406 Bcf. EP 161 had its unrisked 1C estimate increased to 91 Bcf and unrisked 2C to 470 Bcf. “Across 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 by 32 percent to 2.0 trillion cubic feet”, the regulatory disclosure 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 following flow testing, which is expected in Q1 [first quarter] 2024”, the filing said.
“Tamboran continues to demonstrate the continuous nature of Mid Velkerri B and C Shale across our 4.7 million (gross) acreage 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 in close proximity to the Amadeus Gas Pipeline”, Tamboran managing director and chief executive Joel Riddle said in a statement.
“This strategic positioning is expected to support a potential accelerate production to supply natural gas to the Northern Territory market. This is particularly critical given recent production declines from the offshore Blacktip gas field, which is expected to impact the region’s gas supply”.
Tamboran holds a 38.75 percent stake and operatorship in EPs 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 25 percent non-operated ownership.
Last week EP 117 partners Falcon and Tamboran announced the successful drilling of SS1H. The well was drilled to a depth of 14,107.61 feet (4,300 meters) with a horizontal section of 3,523.62 feet (over 1,074 meters), according to a joint press release September 18. “Initial evaluation confirms reservoir continuity of the Amungee Member B-shale over 150 kilometers [93.21 miles] between Amungee NW-2H (A2H) and Beetaloo W-1 wells. This includes a target development area of approximately 1 million acres where the shale depth exceeds 2,700 meters [8,858.27 miles]”, the release stated.
SS1H sits, 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 June 22 gas flow at A2H had potentially been inhibited but that the results showed the well possibly had more in store for production. “The A2H well achieved gas breakthrough, however, modeling and independent third-party analysis from a US laboratory identified a potential skin inhibiting the flow of gas from the stimulated shale”, they said.
“Despite this, the gas has flowed at an average rate of 0.97 mmcf/d [million cubic feet per day] over 50 days with circa 10 percent of the water used in the simulation program recovered to date, well below other wells in the basin”, the co-venturers said. “The JV [joint venture] believes flows from the well are yet to establish an uninhibited 30-day initial production rate”.
The well was producing around 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 added.
“The JV believes the results are not indicative of the underlying production potential of the Amungee Member B Shale as the Amungee NW-IH well achieved flow rates of >5 mmcf/d over a normalized 1,000 meters [3,280.84] from the same well pad in 2021”.
Falcon and Tamboran said they would continue testing fluid samples to determine how to clean up the suspected inhibitor.
To contact the author, email jov.onsat@rigzone.com
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