(MENAFN- ABN Newswire)
During the quarter, Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNNY) drilled and cemented the Shenandoah South 1H (SS1H) and Amungee NW 3H (A3H) wells within EP 117 and 98, respectively. The wells were drilled with the H&P super-spec FlexRig(R) Flex 3 rig and delivered significant improvements in drilling efficiency.
The SS1H well successfully intersected 90 metres of high quality Mid Velkerri B Shale, the thickest section to date within the Beetaloo Basin depocentre. Logging of the shale formation indicated higher porosity and gas saturation relative to offset wells.
The A3H well was successfully drilled and cemented in less than 18 days, the fastest well drilled to Total Depth (TD) with a horizontal section into the Mid Velkerri B Shale to date. The well was drilled ~20 days faster and ~30% lower cost than the A2H well from the same pad.
Tamboran announced a 32 per cent increase in Beetaloo Basin unrisked 2C contingent gas resources to 2.0 TCF following the drilling of the Maverick 1V (M1V) well in EP 136.
During the quarter, Tamboran signed six Letters of Intent (LOIs) with Australia's largest gas and energy retailers for 600 - 875 TJ per day (220 - 320 PJ per annum) for up to 10 - 15 years, demonstrating long term domestic demand for Beetaloo Basin gas supplies.
In October, Tamboran announced the intention to re-domicile to the United States by way of a Scheme of Arrangement (Scheme). Tamboran will remain listed on the ASX via CHESS depositary interests (CDIs) under the TBN ticker.
Tamboran commenced Concept Select engineering studies with Wood Group in relation to the Company's proposed NTLNG development at Middle Arm.
In September, Tamboran announced the appointments of Ms. Stephanie Reed and Mr. Ryan Dalton as Non-Executive Directors to the Board of Tamboran Resources Limited.
At 30 September 2023, the Company had a cash balance of A$33.5 million.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle said:
"The first quarter of the financial year has been an active one for Tamboran as we commenced our FY24 drilling program with two wells in the EP 98/117 acreage utilising H&P's modern US rig. The joint operations with H&P have already delivered a step change in drilling efficiency, especially the drilling of the A3H well operations, which reached TD in less than 18 days. We will continue to learn from these activities as we target development well lateral lengths to 3,000 metres (~10,000 feet) in less than 20 days over coming years.
"The drilling and logging activities at the SS1H location have validated our view that the deepest sections of the Beetaloo Basin hold the highest quality shale, with logging of the Mid Velkerri B showing higher porosity and gas saturation relative to offset wells. The 10-stage stimulation program at SS1H is on track to commence in November and we look forward to sharing flow results with the market by early 2024. If deemed commercial, the results are expected to lead to the sanctioning of a proposed 40 TJ per day pilot development in the first half of 2024.
"We also made the decision to re-domicile Tamboran from Australia to the US, which is being undertaken via a Scheme of Arrangement, with shareholder vote planned for early December 2023. While we will continue to be traded on the ASX via CDIs following implementation of the Scheme, the intention to redomicile aims to allow the Company to access deeper capital markets in North America and improve valuation of our Beetaloo Basin assets in a market that better understands shale developments."
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Tamboran Resources Ltd (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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