March 2024 Quarterly Activities Report
Sydney, April 30, 2024 AEST (ABN Newswire) - In February 2024, Tamboran Resources Corporation (
ASX:TBN) (TBNNY:OTCMKTS) announced 30-day initial production (IP30) flow rates from the Shenandoah South 1H (SS-1H) well in EP 117. The well flowed at 3.2 million cubic feet per day (MMcf/d) over the 1,644-foot (501 metre) stimulated length within the Mid Velkerri B Shale, normalized to 6.4 MMcf/d over 3,281-feet (1,000 metres).
The SS-1H well was flow tested over IP60 and IP90 periods, delivering 3.0 and 2.9 MMcf/d respectively, normalized for 6.0 MMcf/d and 5.8 MMcf/d over 3,281 feet (1,000 metres) respectively. The flow rates over the 90-day period exceeded Tamboran's pre-drill expectation and provide the Company with confidence to progress drilling activities during 2024 for the proposed ~40 MMcf/d Shenandoah South Pilot Project (the Pilot Project).
In March 2024, Tamboran increased its interest in the proposed Pilot Project up to 47.5% following the decision by Falcon Oil & Gas (Australia) Limited to limit its participation to 5.0% in the second Shenandoah South well pad (SS2) and the two wells in the 2024 drilling program.
In April 2024, Tamboran announced a binding, long-term take-or-pay Gas Sales Agreement (GSA) to supply the Northern Territory Government (NTG) with 40 TJ per day (~19 TJ per day net to Tamboran) for an initial term of nine years from the proposed Shenandoah South Pilot Project.
Tamboran progressed Front End Engineering and Design (FEED) activities for the proposed compression and dehydration facility as part of the Pilot Project. The Pilot Project is targeting a sanctioning decision in mid-2024, subject to funding and key stakeholder approvals.
Tamboran completed Concept Select studies with Wood Group for the proposed 6.9 MTPA NTLNG development at Middle Arm in Darwin. Tamboran expects to commence pre-FEED studies in mid-2024 following completion of a competitive process with potential Engineering Service Contractors.
As at 31 March 2024, the Company had a cash balance of A$38.9 million.
Tamboran Resources Corporation Managing Director and CEO, Joel Riddle said:
"We view the third quarter of FY24 as a major de-risking point for the Beetaloo Basin and the 1-million-acre development within the Beetaloo West region. Results from the successfully drilled SS-1H well in EP 117 have demonstrated the deliverability of the highly productive Mid Velkerri B Shale within the deepest regions of the basin, which are expected to achieve superior economics than the shallower regions of the basin.
"Tamboran and the Northern Territory Government announced a key binding long-term, take-or pay GSA that will supply the Northern Territory local market for up to 15 and a half years from the Beetaloo Basin.
"The binding agreement is expected to support the funding to underpin a Final Investment Decision (FID) on the proposed Pilot Project at Shenandoah South, which is planned in mid-2024, subject to funding and key stakeholder approvals. We expect first volumes from the Pilot Project will deliver much needed gas into the local Northern Territory gas market by H1 2026.
"On our LNG project, we have completed Concept Select studies with Wood Group with key decisions made regarding size, liquefaction technology, plant layout and schedule that will set the scope for preFEED studies. We expect to conclude discussions with a preferred Engineering Services Contractor in the next few months ahead of commencement of pre-FEED in mid-2024."
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/K645EB98
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.
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