September 2022 Quarterly Activities Report
Sydney, Oct 21, 2022 AEST (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (TBNRF:OTCMKTS) Managing Director and CEO, Joel Riddle said: "The first quarter of financial year 2023 has been a transformational period for Tamboran, having announced the acquisition of Origin Energy's Beetaloo Basin assets. On completion, the acquisition will provide Tamboran with a dominant acreage position and sets the Company up to control the pace of development of the Beetaloo.
"We also announced IP30 rates from the two Tanumbirini wells in EP 161, which have shown a significant improvement in performance since the installation of production tubing. The rates from the two wells exceed what we believe to be the commerciality threshold for our acreage in the Beetaloo Basin, and further support the development of this nationally significant, low-CO2 natural gas resource.
"In addition, our team has completed a significant milestone with the drilling of the M1V well. I am extremely proud of our team and contractors in delivering Tamboran's first operated well in the Beetaloo. This included a 54 per cent reduction in drill time relative to comparable wells drilled in the Basin, which is a significant accomplishment.
"We look forward to continuing to validate our operational capabilities in unconventional drilling with the A2H and A3H wells in the newly acquired EP 98 acreage. The A2H well is expected to commence drilling by the end of October 2022."
Highlights for the Quarter:
- Tamboran and Bryan Sheffield (Sheffield) to acquire Origin Energy's (Origin) 77.5 per cent interest in three Beetaloo Basin permits (EPs 98, 117 and 76) through a 50:50 joint venture (the JV) for an upfront cash consideration of $60 million and a future production royalty. Completion subject to final regulatory approvals, expected in early November 2022.
- Binding 10-year Gas Sales Agreement (GSA) for up to 36.5 PJ per annum (18.3 PJ per annum net to Tamboran) signed between the JV and Origin, Australia's leading energy retailer.
- Two tranche, $138 million equity placement (before costs) at $0.21 per share to new and existing shareholders launched, with first tranche completed. Funds to support Tamboran's acquisition of Origin's Beetaloo assets and drilling operations, including Maverick 1V (M1V), Amungee 2H (A2H) and Amungee 3H (A3H).
- Following tubing installation, average 30-day (IP30) flow rates from Tanumbirini 2H (T2H) and 3H (T3H) of 2.1 and 3.1 million standard cubic feet per day (mmscfd) achieved, normalised at 3.3 and 5.2 mmscfd over 1,000-metres lateral length, respectively. These rates exceed what Tamboran believes to be the commerciality threshold for a 1,000-metre horizontal well.
- Entered a Strategic Alliance and secured a $22 million equity investment from Helmerich & Payne, Inc. (H&P), the largest drilling solutions provider in the US. Tamboran and H&P have finalised a drilling contract for a super-spec FlexRig(R) over a two-year term.
- The M1V well commenced drilling in Tamboran's 100 per cent owned and operated EP 136 permit in mid-September 2022. The well safely reached total depth of 3,050 metres in 18.3 days, 54 per cent faster than offset wells deeper than 2,500-metres.
- Strong balance sheet with $26.7 million cash balance at 30 September 2022. A further $98.8 million is expected to be received following a shareholder vote on the second tranche of the equity raising at a General Meeting on Tuesday 25 October 2022.
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About Tamboran Resources Limited
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.
Tamboran Resources Limited