Industry News

The Territory Labor Government’s main focus is to grow our economy, create working opportunities for Territorians and continue transitioning to a net-zero future. 

The Beetaloo-Sub Basin on-shore natural gas resource will be at the forefront of the world’s transition to renewable energy and enable a new economic era for the NT, estimated to increase economic activity by over $17 billion.

Today, Tamboran a key stakeholder in the Beetaloo Sub-Basin, released their initial production results from well testing. 

Over the first 30 day period of testing, Tamboran’s pilot project at Shenandoah South recorded the highest normalised rates of gas flow achieved in the Beetaloo Basin to date. 

These results exhibit the commercial viability of the project, with Tamboran now moving onto the construction phase and have outlined the potential for natural gas to be delivered to the NT in 2026. 

As this project continues to progress, more work opportunities will become available for Territorians and millions of dollars continue to be spent even before full production which flows straight back into our communities. 

Reaching net-zero emissions by 2050 is a key goal of the Territory Labor Government and Low C02 Natural gas is critical to transitioning away from high emissions energy sources, securing our energy resources, and lowering your power bills.

The Beetaloo Sub-basin was also at the core of the most comprehensive regional scientific study in Australia’s history, the SREBA. The SREBA was completed alongside a major scientific inquiry into Hydraulic Fracking to ensure rigours mechanisms are in place to protect our environment. 

Quotes attributable to Chief Minister, Eva Lawler:

“The Northern Territory is on the cusp of immense economic growth, and will be at the forefront of the nation’s transition to a net-zero future. 

“Today’s results released by Tamboran, who are also proponents of the Middle Arm Sustainable Development Precinct, paints a prosperous picture for the Territory as we strive towards a $40 billion economy by ensuring we capitalise on our world class energy resources.

“It is critical we continue to enabling growth in this sector, because with growth comes a predicated 13,000 more opportunities for Territorians to work in new sectors, more reliable energy sources, lower emission production and lower power bills. 

Quotes attributable to Minister for Mining, Mark Monaghan:

“The Beetaloo Basin has globally significant Natural Gas reserves which will transform clean energy production in Australia.

“Sitting 500kms south east of Darwin, are projects which will create multibillion dollar growth to our economy, and Tamboran’s 30 day flow test results is a key step in delivering on this vision. 

“We will be the jurisdiction to deliver cheaper, more reliable and lower emissions gas to the rest of Australia for decades to come.”

Quotes attributable to Chief Executive Officer of Tamboran, Joel Riddle:

“We are extremely excited to announce the results from the SS-1H well, which are the highest normalized rates achieved in the Beetaloo Basin to date. The normalized flow rates of 6.4 MMcf/d over a 1,000-metre (3,281-foot) lateral section demonstrate to us the commerciality of the Beetaloo Basin.

“The IP30 result gives us confidence to commence the construction phase of the proposed 40 MMcf/d Pilot Project at Shenandoah South under the Beneficial Use of Gas Legislation, which allows gas that would otherwise be flared to be sold into the local gas market. These volumes have potential to supply natural gas into the Northern Territory gas market in 1H 2026. Final Investment Decision is planned for mid-2024.

“Importantly, the rock properties, including reservoir pressure, effective porosity and gas-in-place, have delivered IP30 flow rates and well performance at Shenandoah South in the  Beetaloo West that are favourable to production rates in some regions of the Marcellus Shale dry gas window.

“We will continue flow testing of the well over an initial 90-days to allow for an independent analysis of the expected 20-year EUR of the wells in the region. We then expect to commence drilling of the first two development wells for the proposed Pilot Project, which will be the first 10,000-foot wells drilled in the Beetaloo Basin.”

Source: Northern Territory Government Newsroom

SS-1H achieves commercial IP30 flow rate of 3.2 MMcf/d (normalized to 6.4 MMcf/d over 1,000 metres), exceeding pre-drill expectation

Highlights

• The Shenandoah South 1H (SS-1H) well in EP 117 achieved an average 30-day initial production (IP30) flow rate of 3.2 million cubic feet per day (MMcf/d) over the 1,644-foot, 10 stage stimulated length within the Mid Velkerri B Shale, normalized to 6.4 MMcf/d over 3,281-feet (1,000 metres).

• Results from the SS-1H well exceeded our pre-drill expectation, which provides the Company with confidence to progress drilling activities during 2024, subject to funding and key stakeholder approvals.

• Exit rate trajectory showed a steady, low-declining curve at 2.9 MMcf/d over the stimulated length (normalized at 5.8 MMcf/d per 3,281 feet) with a flowing wellhead pressure of 575 psi.

• Geological rock properties at SS-1H compare favourably with those in the average Marcellus Shale dry gas window, including reservoir pressure, effective porosity and gas-in-place.

• The Company believes the SS-1H IP30 result elevates the Beetaloo West region as one of the most favorable places to anchor an initial development and commences the de-risking of more than 1 million acres below 8,850 feet (true vertical depth).

• Tamboran will progress development plans for the proposed 40 MMcf/d Pilot Project in the Shenandoah South location. The project is expected to require six upfront 10,000-foot development wells to achieve plateau production. Drilling is planned to commence in Q2 2024.

• At the end of January 2024, Tamboran held ~A$55 million in cash to support ongoing activities, which the Company expects to use to fund its 38.75% working interest in the proposed Pilot Project, subject to final Joint Venture approvals. 

To view the full ASX announcement, click here.

Source: Tamboran Resources Corporation 

Highlights

• Tamboran has booked its first estimate of contingent gas over the Shenandoah South region across EP 98 and 117 in the Beetaloo Basin following a successful 30-day initial production (IP30) flow test of the Shenandoah South 1H (SS-1H) well.

• The EP 76/98/117 unrisked net 1C contingent gas resources increase by 33 billion cubic feet (Bcf) to 284 Bcf and unrisked net 2C contingent gas resources increase by 152 Bcf to 1.2 trillion cubic feet (Tcf).

• The resource upgrade has been evaluated and certified by leading independent third-party resource certifier Netherland, Sewell & Associates, Inc. (NSAI), with an effective date of 31 January 2024.

• The 2C resources support the sanctioning of the proposed 40 million cubic feet per day (MMcf/d) Shenandoah South Pilot Project, which is expected to be sanctioned in mid-2024 and deliver first gas into the Northern Territory in Q1 2026, subject to securing financing and key stakeholder approvals.

The Energy Club NT commends the Northern Territory Government for its proactive approach in launching the Territory Resources Social License campaign, aimed to redefine the relationship between the resources sector and the community, fostering transparency, engagement, and sustainable practices.

The campaign, spearheaded by the Northern Territory Government, signifies a progressive step towards aligning the interests of the resources industry with the values and expectations of local communities. As a key stakeholder in the energy sector, the Energy Club NT recognises the pivotal role this campaign will play in establishing a social license framework that ensures responsible resource development.

"The Energy Club NT welcomes the launch of the Territory Resources Social License campaign as a proactive and inclusive approach to addressing the evolving needs and expectations of our communities, this approach reflects the commitment of the Northern Territory Government to balance economic growth with environmental and social responsibility" said Stephanie Berlin, Chief Executive Officer of the Energy Club NT.

“By prioritising dialogue and understanding, the initiative seeks to address concerns, dispel misconceptions, and promote the positive contributions of the resources industry to our economy, the employment sector, and in the quest for sustainability. All of which are keystone to driving the Northern Territory towards its economic objective of $40 billion by 2030”.

“The success and growth of our Industry in the Northern Territory hinge not only on strategic investments and strong government backing but also on an established platform of trust and transparency. By fostering open communication and mutual respect, we can build a stronger, more sustainable future for all stakeholders involved”

Through collaborative efforts and ongoing engagement, the Energy Club NT is committed to supporting the objectives of the Territory Resources Social License campaign and contributing to the continued prosperity and well-being of the Northern Territory.

To view the full media release, click here.

The Territory’s mining and resource industry is worth $6.2 billion, and is key to reaching the Territory Labor Government’s $40 billion economic target.

Mineral exploration for the September quarter of 2023 resulted in a record expenditure of $74.4 million.

To attract further investment in the sector, the Territory Labor Government is today releasing a fully updated guide to Critical Minerals in the Northern Territory, which outlines the Territory’s critical minerals that the world needs.

As part of this update, the Territory’s critical minerals list has increased from 15 to 17, with gallium and graphite added to the list following recent discoveries of these minerals in the Territory.

The mining and resources industry creates more direct and indirect jobs for Territorians than any other, currently directly employing over 5300 people and contributing close to a quarter of the Territory’s gross state product.

To ensure the success of the Territory’s resources sector, both now and in the future, the Territory Labor Government is focused on building community trust through regulation, and providing information on the value of resources.

A Territory-wide Social Licence campaign will now be implemented to reinforce the rigour of the Territory’s regulatory environment, as well as collaborating with Industry to promote efforts to achieve a sustainable future.

The Mineral Development Taskforce reinforced the importance of Government working with Industry to build credibility, legitimacy and a level of acceptance in the Territory, as well as informing public commentary with correct facts.

Starting this month, the Territory Government will roll out informative and factual content about industry regulation and the importance of the sector for Territorians.

Led by the Department of Industry, Tourism and Trade, it will be underpinned by a new website that provides additional information about the sector. https://northernterritoryresources.com.au/

To view the updated critical mineral document and the new informative content visit  https://geoscience.nt.gov.au/gemis/ntgsjspui/bitstream/1/92851/2/Critical-Minerals-in-the-Northern-Territory-2024.pdf

Quotes attributable Chief Minister Eva Lawler:

“The resources sector is key to achieving our goal of a $40 billion economy by 2030.

“Having a strong and diversified economy means that we will have the revenue to enable investment back into Territory priorities and essential services such as secure energy supply, health, education, housing, and infrastructure.

“The Territory Government is sending a loud and clear message to investors that we are a world class destination for mining and we have the resources needed for low emission technologies. The new 2024 Critical minerals guide lists 17 critical minerals, with the addition of graphite and gallium, thanks in part to an investment by Transition Minerals down in the Barkly. This is Australia’s first gallium resource development.”

Quotes attributable to Minister for Mining, Mark Monaghan:

“The Territory’s mining and resources industry is the backbone of our economy, and creates more direct and indirect jobs than any other.

“The NT Government has an important role to build trust in the regulator to meet our responsibilities to do right by Territorians. We must also continue to work with Industry to keep Territorians informed about the role mining and resources has in the Territory and in their lives. 

“The Territory Labor Government’s steadfast focus remains on building a $40 billion, and this newly implemented Social Licence will ensure Territorians are informed and involved throughout the entire journey.”

Source: Northern Territory Government Newsroom

Drilling has begun on a second well in the Barossa gas field, 290km north-west of Darwin.

In its annual results released last week, South Australian-based resources company Santos said the second well was matching outcomes from the first, with strong gas flows and low carbon emissions.

According to Santos, the Barossa gas project is now 67 per cent complete with first gas expected in the third quarter of 2025.

The pipeline that will deliver gas from the field to Darwin LNG is now 68 per cent complete and more than 50 per cent of the pipe has been laid.

The company said initial well flow rates from the second drill were “in line with expectations” and carbon dioxide content was at the low end of the expected range.

The company anticipates that at full production, Barossa is expected to add 1.8m tonnes per annum to Santos’ expanding LNG portfolio.

Completed just after Justice Natalie Charlesworth’s historic January 15 finding that cleared the way for work to resume laying the pipeline past the Tiwi Islands, the report is upbeat about the project’s future.

It forecasts completion and integration of the floating production and storage offloading facility in the first-half of 2025 and complete installation and testing of the gas export pipeline.

Subsea flow lines will be installed and tested this year and construction will begin on the Darwin pipeline duplication that will connect the gas export pipeline to Darwin LNG plant.

The report also said Santos transitioned to supplying gas from Bayu Undan to the NT domestic market on November 30, although failed to mention when supplies would run out.

The plant itself is being isolated and hydrocarbons removed and the Darwin life extension project is 32 per cent complete and on track for completion in the first half of 2025.

The life extension project will prepare the Wickham Point LNG plant to switch from Bayu Undan field sourced gas to Barossa gas.

Santos chief executive Kevin Gallagher said projects like Barossa were the future of Australian energy generation.

“Our critical fuels are a necessary component in the energy security of Australia and Asia, and will be required to provide affordable and reliable energy while the world transitions to lower-carbon alternatives,” Mr Gallagher said.

Source: The NT News

To view the full article online, click here.

Clean, green power across the Territory is a priority of the Territory Labor Government.

The Wurrumiyanga Solar Infill and Energy Storage Pilot Project is another step closer to completion with the battery energy storage system currently undergoing testing in Berrimah.

Wurrumiyanga is already operating on some solar. This project will provide an additional 1.1 megawatt solar array, together with a 1.75 MVA battery energy storage system.

The battery system will provide 3 megawatt hours of storage capacity.

Once testing of the battery system is complete at Berrimah, it will be transported to Wurrumiyanga where another round of testing will take place to ensure successful integration with the grid.

The project is estimated to reduce diesel fuel consumption by 519,000 litres in the first year of operation by introducing additional renewable energy technology, with works expected to be completed by May 2024.

The $6.1 million Wurrumiyanga Solar Infill and Energy Storage Pilot Project is part of the Territory Labor Government’s commitment of $10.4 million to date for the Renewable Remote Power Program.

This project will contribute to the Territory Labor Government reaching our target of 50% renewable energy by 2030, which includes an average of 70% renewables in all communities supplied by the Indigenous Essential Services program.

Quotes attributable to Minister for Renewables and Energy Kate Worden

“The Northern Territory is in the process of transitioning to a future where renewable energy will play a greater role in our energy consumption.

“The Wurrumiyanga Solar Infill and Energy Storage Pilot Project will give the community cleaner power and reduce the need to rely on diesel generators.

“We are working towards our target of net zero emissions by 2050 and projects like this will play a significant role in achieving this.

Quote attributable to the Member for Arafura, Manuel Brown:

“It is great to see our largest community on Bathurst Island driving down emissions. Testing underway means my community will get more renewable energy soon.

“A renewables future is now one step closer for the Wurrumiyanga community and we look forward to extending the lessons learnt from this project to other remote Territory communities.”

Source: Northern Territory Government Newsroom

Related articles:

• Clean, affordable and green power for Wurrumiyanga
• NT Government: Wurrumiyanga Remote Power Project Underway

Link to Santos 2023 Full-year Results Video

https://www.santos.com/news/2023-full-year-results-video/

Source: Santos 

Tamboran Resources’ Managing Director and Chief Executive Officer, Mr Joel Riddle, will host a webcast to update the market on the Company’s Shenandoah South 1H (SS-1H) 30-day initial production (IP30) well test and ongoing operations in the Beetaloo Basin.

Time: 9:30am AEDT (Sydney, Melbourne)

Date: Monday, 26 February 2024

Webcast link (pre-register):

https://webcast.openbriefing.com/tbn-mu-2024/

A recording of the webcast will be available on the Tamboran Resources website following completion of the presentation.

Source: Tamboran Resources

To view the full ASX announcement, click here.

The Territory Labor Government will host a series of summits with businesses in each of regional centres over the coming months with the first summit to kick off in Katherine this week. 

The Territory Business Summits will be an opportunity to hear directly from Territory businesses on their ideas as well as for the Territory Government to ensure we are providing the right support to ensure the NT has a resilient and enterprising small business sector.

Focussing on issues such a worker shortages and business the growth, the summits will help inform the Territory Governments Small Business Strategy.

Following the Territory Business Summit in Katherine this Wednesday, 21 February 2024 the next business summit will be held in Alice Springs on Wednesday 28 February 2024.

In Darwin there will be an Indigenous Business Breakfast Summit on 7 March followed by a Business Breakfast Summit for all local businesses on 28 March

Territory Business Summits in Tennant Creek and Nhulunbuy will take place in late April to early May 2024 with more details coming soon.

Territory Government business support teams will also be attending the summits to provide information on the range of Northern Territory Government programs available to support your business needs.

For further information and to register head to: https://business.nt.gov.au/tbs

Quotes to attribute to Minister for Business and Jobs Joel Bowden:

“We want to make sure the Territory Labor Government hears directly the voices of our Territory business owners and together we are working to help build a strong and resilient economy for the Territory, and how we reach a $40 billion by 2030.

“The summits are a timely opportunity for business to connect directly with government and talk about their experiences and what they need from government to help them thrive in the future.

“Small businesses are the cornerstone of the Territory economy and we want to hear from you on how we can drive jobs, growth and better support the small business sector.”

Source: Northern Territory Government Newsroom