June 2023 Quarterly Activities Report
Sydney, July 26, 2023 AEST (ABN Newswire) - The Northern Territory Government granted Tamboran Resources Limited (
ASX:TBN) (TBNNY:OTCMKTS) exclusivity over 170-hectares (420-acres) on the Middle Arm Sustainable Development Precinct (Middle Arm) for a proposed LNG development, Northern Territory LNG (NTLNG).
Tamboran selected APA Group (ASX:APA) as the preferred transmission pipeline partner. The parties will work towards jointly developing pipelines to connect Tamboran's Beetaloo Basin assets to Australia's domestic East Coast gas market and Tamboran's proposed NTLNG development.
Tamboran announced two non-binding MOUs with bp and Shell to each purchase up to 2.2 million tonnes of LNG per annum (MTPA) over a 20-year period from the proposed NTLNG development.
Tamboran entered a framework agreement with Clean Energy Fuels Australia (CEFA) group of companies to obtain exclusivity over gas compression, liquefaction and mini-LNG facilities for potential early production from the Beetaloo Basin.
During the quarter, the Amungee 2H (A2H) well in EP 98 achieved gas breakthrough. Modelling and independent third-party analysis of fluids recovered from the well have identified potential skin with options to clean up the well being evaluated, subject to JV approval.
Tamboran completed analysis of flow tests from the Tanumbirini 2H (T2H) and 3H (T3H) wells in EP 161 (Tamboran 25 per cent). The independently modelled decline curves demonstrated a 20- year Estimated Ultimate Recovery (EUR) of approximately 16.8 billion cubic feet (BCF) and 18.5 BCF, respectively, in-line with the most productive regions of the Marcellus Basin, USA.
In June, Tamboran announced a $71.4 million capital raise to fund further drilling activity at Shenandoah South and Amungee. The raise included a placement of $53.2 million (before costs) at $0.18 per share, a $13.3 million Convertible Note with Helmerich & Payne (H&P) and a Share Purchase Plan to raise up to $5 million.
At 30 June 2023, the Company had a cash balance of $10.6 million.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle said:
"It has been a busy and exciting quarter for Tamboran, epitomised by the number of key commercial announcements made that underpin our proposed development of the Beetaloo Basin.
"The agreements with CEFA and APA provide the joint venture with an infrastructure pathway to commercialise our Beetaloo Basin gas. This includes exclusivity over CEFA's compression and mini-LNG facilities, which could allow for first sales into the Northern Territory gas market in 2024, and an agreement that APA will undertake initial studies and approvals work pertaining to proposed pipelines which would connect the Beetaloo Basin to the East Coast gas network and Tamboran's proposed NTLNG development at Middle Arm.
"Gaining exclusivity over a 170-hectare block at Middle Arm is a major achievement for the Company, with potential to link the long-term future of the Beetaloo Basin to Australia's East Coast gas market and international LNG markets. I believe this is an important pathway to supporting our Asia Pacific neighbours in decarbonisation efforts as gas, which emits 50 per cent less CO2 emissions than coal, replaces coalfired power. This is supported by the signing of two MOUs for up to 4.4 MTPA of LNG with two of the world's largest LNG portfolio trading and energy companies.
"At the end of the quarter, we announced a $71.4 million capital raise to fund additional drilling activity in the Beetaloo, including a return to drilling in the deeper 'core' region of the EP 117 acreage, south of Amungee. This location is expected to deliver similar geology to the Tanumbirini wells in EP 161, which both achieved commercial flow rates over a normalised 1,000 metre horizontal section during testing in 2023.
"Thank you to our shareholders for support in the recent equity raise. We continue to focus on delivering value to our shareholders as we progress our activities to first production. We are excited to share the upcoming drilling and flow results with you as we strive to commence gas sales via mini-LNG in 2024, subject to positive flow results at the Shenandoah South 1H (SS1H) and Amungee 3H (A3H) wells."
*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/2W6791O3
About Tamboran Resources Corporation
Tamboran Resources Corporation (ASX:TBN) is a natural gas company that intends to play a constructive role in the global energy transition towards a lower carbon future by developing low CO2 unconventional natural gas resources in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran's key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197 which are located in the Beetaloo Sub-basin.
| ||
|
