Carpentaria - 1 well Beetaloo Basin
I'm guessing the younger holders of EEG may not have heard of Ronald Reagan (one of America's great Republican Presidents) or his famous quip:
"What are the scariest words in the English language?"
"I'm from the government and I'm here to help".
Yes, I am a long term holder of EEG (formerly IMP) and yes I want it to succeed and the SP to rise...but I am always wary of the poison pill of government support of any sort. It elevates the 'stupid factor' risk.
EEG website is not keeping up with media articles. Two Territory items have not been added. All positive. Perhaps has something to do with current share price resurgence ? Completion of documentation of drill results are in progress before despatch to USA lab - maybe that is reason for volume and price rise ?
Tamboran Resources press release yesterday indicating Tanumbirini -1, reopened after 160 day shut in, producing average flow rate 2.3 MMCF/D first 90 hours, continuing flowing gas at " excellent rates " with decline rate " significantly better than expected ". 365 days at that flow rate and at net price AU$5.50 gives $847000 disposable cash. Nice. Well is nearby on western side of EEG area.
In July publicity said Tamboran was doing presentations before capital raising and subsequent IPO. It isn't listed. Is it still to buy Pangaea ? What is current situation ? Listing would provide another Beetaloo trading choice with exclusive focus in Beetaloo.
Todays EEG release contains table. In conventional discoveries figures given for Velkerri Mid A Effective Porosity 4 % and " Net to Gross " 42 % Velkerri Mid Intra A / B are low. Do they have same status in unconventional analysis ? If status is same in unconventional analysis successful fracing has prominent role to play in production testing and field development. Lab results late Q4 expanding data will be X-mas cheer.
Hottest play on the planet': Beetaloo explorer aims high
Senior resources writer
Oct 27, 2020 – 12.00am
The Northern Territory's remote Beetaloo Basin could be supplying gas to the east coast years before most people expect and in time to head off shortages forecast to arise from 2023, according to the head of Santos' junior partner in its drilling project.
Joel Riddle, chief executive of Tamboran Resources, described the exploration area in the NT as "the hottest play on the planet", based on much better than expected flow rates from testing at the Tanumbirini-1 well last week and the ready market for gas on the east coast and in Asia.
The Tanumbirini-1 well in the Northern Territory has raised hopes for a commercial gas project. Santos
Tamboran, backed by two huge US funds, is heading for an ASX sharemarket listing early next year, either through an IPO of up to $195 million or a reverse takeover of a listed junior. It is one of several players working – amid opposition from environmental groups – to firm up a potentially huge gas resource in the NT that could prove to be Australia's answer to the US "shale gale".
The explorer, which holds 25 per cent of the exploration venture with Santos, is also backed by Rich Lister Paul Fudge, who made billions from the sale of coal seam gas acreage during Queensland's CSG boom.
The Tanumbirini-1 well lies about 80 kilometres to the east of where Origin Energy is working with North Amerca's Falcon Oil & Gas, which are due to release test gas flow rates from their drilling within weeks. Also in the region is junior Empire Energy, which this month reported encouraging early results from its drilling that suggested the presence of oil as well as gas.
Updated: Oct 27, 2020 – 8.10am. Data is 20 mins delayed.
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The Beetaloo is one of the gas basins earmarked by the Morrison government for accelerated development as it pursues a gas-led economic recovery from COVID-19.
Mr Riddle said the better than expected results from Tanumbirini-1 augured well for a low number of wells to be required for a commercial project, reducing costs.
"That's where the productivity of the Beetaloo really differentiates itself versus other areas of Australia: it's big, it's highly productive and it can solve these shortfalls with just a handful of wells," he said.
"This is why I believe this is the hottest play on the planet ... definitely within the OECD countries."
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Horizontal wells to be drilled and fracked next year at the site still need to confirm the initial readings, but Mr Riddle said that "subject to working with Santos ... we would hope we could get a pilot development going somewhere in the window of 2023 to 2025."
Mr Riddle compared the average 2.3 million cubic feet per day flow from the first 90 hours of testing at the vertical Tanumbirini-1 well with initial vertical wells at the prolific Marcellus shale play in the US which ran at about 400,000 cubic feet per day before achieving rates many times higher in horizontal drilling.
"The fact we are able to achieve mini-multiples of what the core Marcellus vertical frack has been has given us a lot of confidence that as soon as we can drill and frack horizontal wells we will be off and running with a pilot project," he said.
Mr Riddle said that a pilot production project at the acreage could produce 20 per cent or more of a forecast 500 million cubic feet a day shortfall arising in east coast gas supply.
Gas would be transported east through an enlargement of Jemena's existing Northern Gas Pipeline from Tennant Creek to Mount Isa and would be "very robust" economically at widely forecast gas prices on the east coast of $8-$10 a gigajoule.
"This is what's exciting: Other areas of Australia onshore it might take 50 wells to generate 100 million cubic feet per day, but in the Beetaloo we might only have to drill 5 to 10 wells," he said.
Drilling and fracking for unconventional gas remains highly controversial in the NT, however. Origin's annual shareholder meeting last week was dominated by concerns over its Beetaloo drilling. Still, the return of Territory Labor to government in the NT's election in August is being taken as an endorsement of the onshore gas industry, given weak support for minority parties that pledged to veto fracking.
More than $US350 million has been spent exploring the Betaloo Basin since the 1960s, and Origin Energy and Santos’ emergence in recent years combined with regulatory changes has revived interest.
Beetaloo gas play Tamboran pitches whopper IPO to investors
For Tamboran the positive results from testing come at an opportune time, given its plans for a public listing in the first quarter of 2021. The Financial Review's Street Talk column has reported it is contemplating a $195 million IPO, which would be the biggest oil and gas IPO for several years, while Mr Riddle said the company was also examining a potential reverse takeover or merger with an existing public company.
"We are exploring multiple paths," he said. "We want to offer this investment to the Australian institutions here because this is an Australian story. We believe there is appetite to invest in a gas-focused strategy in the Beetaloo pure play and we plan to offer that."
Tamboran's two cornerstone investors, large US funds Baupost Group and Lion Point Capital, had a track record of backing successful shale plays in the US and "have the risk tolerance to support an accelerated pilot development" in the Beetaloo, he added.
Mr Riddle said Tamboran's strategy was to focus on gas and to fast-track towards production, rather than hunt around for gas with liquids, which could end up being an inconvenience unless volumes were high enough.
"The country desperately needs gas, and the federal government is behind this" he said. "We think it's a better strategy to move quickly to a pilot development."
Angela Macdonald-Smith writes on the resources industry with a focus on energy, including gas, oil, electricity and renewables. Connect with Angela on Twitter. Email Angela at email@example.com