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Tamboran Resources: EP 98/117 Operational Update

23 Jun 2023 8:30 AM | Stephanie Berlin (Administrator)

EP 98/117 Operational Update: Interim Amungee 2H update and forward plan

Highlights

• The Amungee 2H (A2H) well in EP 98 has achieved gas breakthrough, however modelling and independent third-party analysis of fluids recovered from the well have identified potential skin inhibiting gas and water flow. Tamboran is highly encouraged that the initial results from the laboratory provide a potential pathway to cleaning up the well and delivering improved flow rates.

• Despite gas flow rates being potentially constrained and with only 10 per cent of water used in the stimulation program recovered to date, the well is currently flowing at a steady rate of 0.83 million cubic feet per day (mmscfd) and averaged 0.97 mmscf over the first 50 days.

• Clean up activity is proposed to be undertaken during the third quarter of 2023. An update is expected to be provided on completion of these activities.

• The Beetaloo Joint Venture (BJV) does not believe this is a reservoir issue or that the initial results are indicative of the prospectivity of the Amungee area. The Amungee NW1H well achieved flow rates of >5 million cubic feet per day (mmscfd) over a normalised 1,000-metre horizontal section from the same well pad in 20211 .

• The BJV plan to drill the Shenandoah South 1H (SS1H) in EP 117 during the third quarter of 2023, where the Mid Velkerri "B Shale" is expected to be approximately 700 metres (30 per cent) deeper than at A2H. The SS1H well will complete the farm-in commitment with Falcon Oil and Gas Australia Limited (Falcon).

• Following the drilling of SS1H, the BJV plans to drill the Amungee 3H (A3H) well to follow up results from the A2H location. Tamboran will incorporate lessons learned from the drilling and stimulation program at A2H across both SS1H and A3H wells.

• Upon success at A3H and SS1H, the Amungee or Shenandoah area could underpin a proposed Flare Avoidance Project, including Clean Energy Fuels Australia Marketing’s (CEFAM) mini-LNG facility, to provide a cleaner and economic alternative to diesel for electricity generation and fuel in the transport and mining industries.

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