H&P rig spuds Shenandoah South 1H and Amungee 2H update

Highlights

• Tamboran has successfully commenced drilling of the Shenandoah South 1H (SS1H) well with the Helmerich & Payne, Inc. (H&P), (NYSE: HP), super-spec FlexRig® Flex 3 Rig.

• The SS1H well is targeting the deeper Mid-Velkerri “B Shale” in EP 117. The deeper shale is expected to host higher pressures and therefore deliver higher flow rates than the Amungee 2H (A2H) well location in EP 98.

• Drilling activity is expected to take ~45 days, including a pilot hole and 1,000-metre horizontal section. The stimulation program is planned to commence during the fourth quarter of 2023.

• On completion of the SS1H flow testing, Tamboran and Daly Waters Energy LP will complete the farm-in requirements to earn the 77.5 per cent interest (38.75 per cent each) and operatorship of the EP 76, 98 and 117 permits. Falcon Oil and Gas Australia Limited will hold 22.5 per cent.

• Success at the SS1H well location could support the pilot development investment decision, which includes use of the Clean Energy Fuels Australia (CEFA) facilities and APA Group (ASX: APA) pipeline to the Amadeus Gas Pipeline (AGP). Tamboran is targeting first domestic gas sales from the pilot development by the end of 2025.

• Fluid lab analysis from the A2H well is ongoing with remedial intervention work planned for later this year, subject to joint venture approvals. The intervention is likely to coincide with activities at the Amungee well pad where the JV is planning to drill the Amungee 3H well following SS1H.

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