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Aahhrrg... the middle part ...
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.
Sorry the very end was cut
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."
Hottest play on the planet': Beetaloo explorer aims high
ANGELA MACDONALD-SMITH OCTOBER 27, 2020
The Tanumbirini-1 well in the Northern Territory has raised hopes for a commercial gas project. Santos
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."
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.
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 b
Santos thinks they might be able to use 5 to 10 wells instead of 50 wells....
"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."
Nice!
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."
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.
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.
https://www.afr.com/companies/energy/hottest-play-on-the-planet-beetaloo-explorer-aims-high-20201026-p568jo
Angela Macdonald-Smith
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