Industry News

EP 161 Update: Flow test analysis of Tanumbirini wells

Highlights

• Tamboran has completed analysis of two Tanumbirini flow tests in the Santos-operated EP 161 permit (Tamboran 25 per cent), including modelling of the production curves by independent third-party subsurface experts, Subsurface Dynamics, Inc.

• Modelling of Tanumbirini 2H (T2H) and 3H (T3H) has demonstrated a 20-year Estimated Ultimate Recovery (EUR) of approximately 16.8 – 18.5 billion cubic feet (BCF), respectively, for a proposed ~3,000-metre development scale well. These results are in-line with the most productive regions of the Marcellus Basin, USA, one of the world’s most prolific shale gas basins.

• The productivity of the wells, which flow tested the Mid Velkerri “B Shale” at depths of more than 3,400 metres total vertical depth (TVD), validate Tamboran’s view that the ‘core’ areas of Beetaloo Basin remains the most productive and validate further testing.

• The results support the Beetaloo Joint Venture drilling decision of the Shenandoah South 1H (SS1H) well in EP 117 (Tamboran 38.75 per cent), where the Mid Velkerri “B Shale” is expected to be approximately 700 metres (30 per cent) deeper than at Amungee 2H. This greater depth is expected to experience higher pressure and therefore improved flow rates and EURs.

To view the full ASX Announcement, click here.

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.

To view the full ASX Announcement, click here.

Falcon Oil & Gas Ltd (TSXV: FO, AIM: FOG) provides an update on operations at the Amungee NW-2H in the Beetaloo Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited

To view the full release, click here.

One of the five proponents working to call the Middle Arm Sustainable Development Precinct home, is in Darwin this week to progress work on its project in the precinct.

Total Eren, a renewable energy, global independent power producer, is proposing to develop a green hydrogen production facility – the Darwin H2 Hub – by using solar energy with the capability of producing more than 80,000 tonnes of renewable-based hydrogen per annum for domestic and export potential.

Total Eren is aiming to construct the Darwin H2 Hub at Middle Arm, which has the potential to create approximately 2,000 jobs during construction and 175 ongoing during its operation and help to fast-track a net zero economy.

In August 2022, the Territory Government signed a Memorandum of Understanding with Total Eren to develop the project.

This week Total Eren will continue to meet with project partners and the Territory Government on their project. They will also continue to work on their environmental baseline studies and mature site design.

Based in Darwin, the H2 Hub will be a renewable energy generation and hydrogen production plant which can assist domestic and international companies to decarbonise through the use of green hydrogen and to facilitate new industries in a net-zero economy

Recently, the Territory Government provided five job creating projects ‘not to deal’ commitments to provide certainty as they develop projects at Middle Arm.

Collectively, these projects represent tens of billions of dollars in capital investment, with the entire Middle Arm development creating around 20,000 jobs in the Territory.

These companies will now progress their facility designs, engineering work and pre-feasibility studies and environmental approvals.  They will be required to comply with all conditions set by the NT EPA as part of the Strategic Environmental Assessment process for the precinct which is currently underway.

Quotes attributed to Chief Minister Natasha Fyles:

“This project is another great opportunity for the Territory to create jobs in this new clean energy sector and significantly contribute to the Territory’s drive to reduce greenhouse gas emissions.

“With our abundant solar resources and our strategic location to support exports into the Indo-Pacific, the production of green hydrogen is a key opportunity for the Territory to address the growing demand for this green energy globally.

“We’re  growing our economy while also transitioning to net zero emissions, and Middle Arm will play a huge part in that transition. This is what responsibly decarbonising and diversifying our economy looks like.”

Quotes from Total Eren Australia’s Managing Director, Kam Ho:

“Since the execution of the Memorandum of Understanding with the NT Government in August 2022, we have established a collaborative partnership with key NT Departments and thank the continued guidance and support of the Major Projects and Investment Commissions.

To date, we have progressed with on ground surveys of our proposed GW-scale generation facility through the engagement to expert, local, Darwin-based ecological consultants and will imminently commence more detailed surveys, analysis and design on our downstream H2 design within Middle Arm precinct over the next 12 months.

The Darwin H2 Hub will be a fundamentally transformative project for Australia and I am pleased to be here today to demonstrate our commitment in advancing the project through development.”

Source: Northern Territory Government Newsroom

Today the Northern Territory Parliament passed Budget 2023, which invests in our future and delivers for all Territorians. Budget 2023 broadens our investments in new industries and jobs, addresses cost of living pressures, strengthens essential services, tackles complex social challenges and protects our great Territory lifestyle. Budget 2023 is made for a Territory on an upward growth trajectory. It is not only focused on the coming financial year, it invests in the future of all Territorians and ensures our children and young people will be well-equipped for the Territory of the future. The Territory’s economy is getting stronger year on year, and Budget 2023 ensures all Territorians will benefit. For the first time since the 2016 Budget, the Territory is projecting a fiscal balance surplus of $67 million within the three-year forward estimates period.   This will meet government’s key objective of returning the budget to balance, two years ahead of the Fiscal Strategy panel’s 2028-29 target. Budget 2023 also expects a net operating surplus from 2024-25 onwards. The Territory’s state final demand has grown by 18% since 2019, significantly higher than any other Australian jurisdiction. Unemployment is currently at a low 3.6% and employment in the Territory is at a record high of 143,600, surpassing the levels seen at the peak of the construction of the Ichthys LNG plant. The Territory’s bottom line is significantly stronger thanks to an increase in own-source revenue, GST collection, strategic investment and the continuation of the Government’s Budget repair Strategy. For more information on Budget 2023, visit https://budget.nt.gov.au/ Quote attributable to the Treasurer, Eva Lawler: “The Territory Labor Government is planning for the future of the Territory, we are creating more jobs in more sectors for more locals. “Budget 2023 invests across the length and breadth of the Territory, we are diversifying our economy, and diversification means opportunity. “We are moving forward strongly as Government to reach our goal of a $40 billion economy by 2030, with many exciting major projects to come over the next few years.”

Highlights

• Tamboran Resources (Tamboran) has entered into a Framework Agreement with the Clean Energy Fuels Australia (CEFA) group of companies including Clean Energy Fuels Australia Marketing Pty Ltd (CEFAM) to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo Basin.

• These facilities have the potential to accelerate gas production and minimise flaring from appraisal wells under the Northern Territory's "beneficial use of gas" regulation as early as 2024, subject to standard regulatory, stakeholder and joint venture consents and approvals.

• The parties will work together to finalise a contract for long term use of the compression and gas conditioning facility for the proposed pilot development. Exclusivity will last until the end of 2023 when the parties expect to move into longer term arrangements.

• The existing compression facilities can be expanded to utilise any available capacity in either the Amadeus Gas Pipeline (AGP) or McArthur River Pipeline (MRP).

• Tamboran has also secured exclusivity over a mini-LNG facility for four months, which could be deployed to supply remote NT communities or mines by the end of 2024, subject to approvals.

• The supply of LNG into the region aims to provide a cleaner and economic alternative to diesel for electricity generation and fuel in the transport and mining industries. This is in line with the Federal Government's Clean Energy Regulations “Emissions Reduction Guidelines”.

To view full ASX Announcement, click here.

The Northern Territory Regional Logistics Hubs have been accepted onto the Australia National Infrastructure Priority list.

The Australian Government committed $440 million in planned equity towards a network of regional logistics hubs across the Northern Territory in the October Federal Budget.

This is a significant step forward for the project and the Territory as the Stage 1 Business Case and the program is now listed as a national infrastructure priority.

The proposal identifies the need for appropriately located terminals, rail sidings and warehousing along the Darwin-Tarcoola rail line.

The Regional Logistics hubs are increasingly important to capitalise on the Northern Territory’s rich resource base in gas and minerals deposits, rare earths and solar irradiance.

The estimated total investment from several proposed projects in mining, minerals and energy industries across the NT is over $38 billion. This investment is expected to support an estimated 6,000 plus construction jobs. Much of the investment and employment increase will occur in remote and very remote regions with higher proportions of First Nations people.

To realise this opportunity, the capacity and efficiency of rail freight and logistics infrastructure along the primary north-south Darwin-Tarcoola rail corridor will need to be upgraded.

The infrastructure will support the development and operation of projects in resources, agriculture, renewable energy and construction, which is essential to achieve the NT Government’s goal of a $40 billion economy by 2030.

Additionally, the regional logistics hubs will increase supply chain capacity across the Territory to benefit communities and increase employment in remote areas.

Quote Attributable to Minister for Infrastructure Planning & Logistics:

“Projects like the Northern Territory Regional Logistics hubs greatly support our ambitious target of a $40 billion economy by 2030.

“By improving rail efficiency and intermodal capacity along the north-south corridor we will support rail volumes and remove investment barriers for development of proposed mining, agriculture and energy projects across the Territory.

“Having projects accepted onto the Australian National Infrastructure Priority list is great news for the Northern Territory, I will continue to work with the Federal Government and Infrastructure Australia to ensure the best outcomes are achieved.”

Source: NT Government Newsroom 

SHEFFIELD Holdings has acquired a 9.24% stake in Beetaloo Basin explorer Falcon Oil & Gas.

The acquisition comes shortly after the Northern Territory government advised it had implemented all the recommendations from an independent inquiry into fraccing, paving the way for industry to begin large-scale production from what has been described by some as the "hottest play on the planet".

Dublin-headquartered Falcon Oil & Gas holds a 22.5% interest in exploration permits EP76, EP98 and EP117 coving around 4.6 million acres of the Beetaloo Sub-Basin alongside operator Tamboran Resources.

This week, the company told the market Sheffield Holdings had acquired 96.47 million shares, representing 9.24% of Falcon's issued and outstanding shares.

The move by billionaire Brian Sheffield to acquire a substantial stake in the minority partner follows an initial investment where Sheffield acquired 38.78% of the permits via a deal with Tamboran.

The permits make up the Amungee project with gas contracted to Origin Energy in a binding 10-year gas sales agreement for up to 36.5 petajoules per annum.

In total Amungee should produce around 100 terajoules per day.

Big rig to deliver big results

Last month, project operator Tamboran announced the arrival of the largest onshore drilling rig to Australia.

In March, US drilling contractor Helmerich & Payne mobilised a massive 2000 horsepower FlexRig to the Northern Territory.

Once operational, it will be the largest and most powerful onshore drilling rig in the country. 

Helmerich & Payne are major investors in Tamboran Resources which will use the rig across its vast acreage holding in the Northern Territory.

The rig is capable of drilling more than 4000-metre horizontal sections. 

Tamboran has contracted the rig for a minimum of two years. 

Source: ENB - Energy News Bulletin

The first ever whole-of-government strategic plan for water across the Northern Territory has been released today by the Minister for Environment, Climate Change and Water Security, Lauren Moss.

The Territory Water Plan is a package of actions that will set the foundation for delivering water security for all Territorians – now and into the future.

Water security is about balancing competing and complex water demands, pressures and challenges over time to ensure Territorians have access to safe and reliable drinking water, to support our communities and our growing economy, and to protect our environment, culture and our Territory lifestyle.

As part of Budget 2023, the Territory Labor Government announced it will be investing $13.5 million over three years to implement the Territory Water Plan.

The Territory Water Plan highlights 16 priority actions that aim to deliver water security for all Territorians now and into the future including:

• Developing new safe drinking water legislation to drive transparency and improvement in drinking water quality

• Securing Darwin’s future water supply through the Manton Dam Return to Service and Adelaide River Off-stream Water Storage projects

• Supporting safe drinking water for remote Aboriginal communities and homelands through community engagement, capacity-building and co-investment with the Australian Government

• Enhancing Aboriginal Territorians’ participation in water management and improving our understanding of the cultural values of water

• Accelerating water science to support sustainable development that underpins a $40 billion Territory economy by 2030

• Driving water efficiency in the public sector through a NT Government demand management strategy

• Delivering good governance, transparency and accountability across government in water management; and

• Protecting key environmental and cultural values as well as supporting the Territory’s resilience to climate change and its impacts on water security.

Last month the independent NT Controller of Water Resources, Mr Andrew Johnson PSM was appointed and the Territory Labor Government will be establishing an Aboriginal Water Advisory Council by 2024 to ensure Aboriginal Territorians views on strategic water issues are represented.

To learn more and view the Territory Water Plan go to watersecurity.nt.gov.au

Quotes from Minister for Environment, Climate Change and Water Security Lauren Moss:

“The Territory Labor Government is committed to protecting and effectively managing our water resources, so it is timely to release the first ever Territory Water Plan to crystallise our key commitments and actions.

“Delivering the actions in this plan will ensure we manage water responsibly and sustainably while supporting economic development for the Territory to thrive and prosper.

“As Minister for Environment, Climate Change and Water Security, I will champion the Territory Water Plan and oversee the implementation of its actions on behalf of the Territory Labor Government.”

Source: Northern Territory Government Newsroom

The first ever whole-of-government strategic plan for water across the Northern Territory has been released today by the Minister for Environment, Climate Change and Water Security, Lauren Moss.

The Territory Water Plan is a package of actions that will set the foundation for delivering water security for all Territorians – now and into the future.

Water security is about balancing competing and complex water demands, pressures and challenges over time to ensure Territorians have access to safe and reliable drinking water, to support our communities and our growing economy, and to protect our environment, culture and our Territory lifestyle.

As part of Budget 2023, the Territory Labor Government announced it will be investing $13.5 million over three years to implement the Territory Water Plan.

The Territory Water Plan highlights 16 priority actions that aim to deliver water security for all Territorians now and into the future including:

• Developing new safe drinking water legislation to drive transparency and improvement in drinking water quality
• Securing Darwin’s future water supply through the Manton Dam Return to Service and Adelaide River Off-stream Water Storage projects
• Supporting safe drinking water for remote Aboriginal communities and homelands through community engagement, capacity-building and co-investment with the Australian Government
• Enhancing Aboriginal Territorians’ participation in water management and improving our understanding of the cultural values of water
• Accelerating water science to support sustainable development that underpins a $40 billion Territory economy by 2030
• Driving water efficiency in the public sector through a NT Government demand management strategy
• Delivering good governance, transparency and accountability across government in water management; and
• Protecting key environmental and cultural values as well as supporting the Territory’s resilience to climate change and its impacts on water security.

Last month the independent NT Controller of Water Resources, Mr Andrew Johnson PSM was appointed and the Territory Labor Government will be establishing an Aboriginal Water Advisory Council by 2024 to ensure Aboriginal Territorians views on strategic water issues are represented.

To learn more and view the Territory Water Plan go to watersecurity.nt.gov.au

Quotes from Minister for Environment, Climate Change and Water Security Lauren Moss:

“The Territory Labor Government is committed to protecting and effectively managing our water resources, so it is timely to release the first ever Territory Water Plan to crystallise our key commitments and actions.

“Delivering the actions in this plan will ensure we manage water responsibly and sustainably while supporting economic development for the Territory to thrive and prosper.

“As Minister for Environment, Climate Change and Water Security, I will champion the Territory Water Plan and oversee the implementation of its actions on behalf of the Territory Labor Government.”

Source: Northern Territory Government newsroom