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Thanks newtofo!
The way I see it is that POQ could have chosen the long path again with a big capital raise on news of the SSH 1 well and chose not to. This in my opinion is quite telling. He has put away is number # 1 driver for a pitching wedge as he knows a deal to sell is close at hand. HE IS A GOOD GOLFER AFTER ALL. But a lousy promoter and marketer. Let's hope he has not put us in the same position we were in with Origin. GLA...Cammy
Gonoles -- at the end of the Tamboran 1/4ly update that I posted earlier -- there is the following statement:
"In April 2024, Tamboran and the Beetaloo Joint Venture (BJV) have signed a binding long-term GSA to
supply the NTG with 40 TJ per day (~19 TJ per day net to Tamboran) from the proposed Shenandoah
South Pilot Project for an initial term of nine years (131.4 PJ Total, ~62.4 PJ net to Tamboran), starting in
H1 2026".
The BJV (Beetaloo Joint Venture) is all three parties -- being Tamboran, Daly Waters, and Falcon. Therefore, Falcon is included in the gas sales agreement with the Northern Territory but only to the tune of 5%. This works out to 6.55 petajoules to the Falcon side of the equation over the first nine years (or the equivalent of two shrimp on the BBQ and a beer each year -- LOL)..
What worries me about these agreements is they don't mention Falcon as part of the JV. Does this agreement exclude Falcon? or is Falcon responsible for its own agreements.
Tamboran Resources has announced that the Tamboran/Sheffield JV has entered into a 10-year Gas Sales Agreement
Posted by Dale | 30/04/2024
Tamboran Resources has announced that the Tamboran/Sheffield JV has entered into a 10-year Gas Sales Agreement for up to 36.5 PJ per annum (18.3 PJ per annum net to Tamboran) with energy retailer Origin.
This follows a MOU executed in June 2022 with gas pipeline operator, Jemena, to enable Tamboran to contract ~100 TJ per day of firm capacity through the Northern Gas Pipeline, subject to applying NGP Access Principles, under a long-term gas transportation agreement.Tamboran Resources’ pure focus is on its acreage portfolio in the Beetaloo/McArthur Basin in the Northern Territory, where it is the largest acreage holder with ~1.9 million net prospective acres, held through 100% owned properties and two joint ventures – one with Santos and the other with Falcon Oil & Gas and Daly Waters Energy LP (Sheffield).
Through these interests, the Company holds net 2C contingent resources of ~1.5 trillion cubic feet (TCF).
The Beetaloo Basin is located in the Northern Territory of Australia, approximately 600 kilometres south of Darwin. Being proximal to a major industrial hub enables relative logistical and operational luxuries, like close access to key infrastructure through roads, a pipeline and a railway.
Its location means efficient access to Australian markets and beyond, with the northern port city of Darwin and the Eastern Seaboard of Australia to the east through Queensland.
https://pesa.com.au/tamboran-steps-on-the-gas-with-origin-agreement-in-the-top-end/
Spoken like a person who absolutely loves horses and has knowledge....now who could you be?
This is getting interesting again. Philip unfortunately sat on his hands the one time a number of years we had a decent chance to build cash reserves.
I’m not sure when there is any news coming but if BS is buying shares, I guessing he is not expecting us to file for bankruptcy. By continuing to average down, he is setting himself up for a windfall if a real player makes a bid for the company. On the other hand, more positive drilling results generate further proof of enormity of this asset. POODS
It was up, then one sell of 230k right at closing drops us 7%. I don't believe that represents the value of our asset. You have no idea of who wants us, or is willing to compete. This stock price has never made sense. Amost $4 a share in 2006 when nothing was known or proven to be a commercial success. Here we sit 18 years later with real data proving incredible potential, and we are at 8 cents. This "I give up BS has us" mentality carries no water of truth. We have nothing yet from anyone. This isn't over, and all the stars are lining up for opposite. Will it be 50 cents? A dollar? 2 dollars? Not a single one of you have that answer. Smile.....the worst thing that could happen is we maybe we double our money. I can live with that given most of us understand risk, as well as could see our patience increase our investment tenfold. We have to ride this horse to the end.
With the price closing in the US today at $.081, he's clearly got no competition and can take his time.
BS now at over 8% ownership. Looks like all three being bought out slowly.
Thanks for sharing schlemiel having seen anything quantified like that 're the resouce. That's some resource!
Atb,
Northern
Oilmansubstackcom/p/oilman-jims-letter-28-april-2024
The well will now be shut in and suspended as a potential future production well. The Beetaloo joint venture partners of Falcon and Tamboran Resources (TBN.AX TBNRL) will continue to undertake front end engineering and design studies and the company expects to take final investment decision in mid-2024, subject to funding and key stakeholder approvals. The 1 million acres of deep shale in the Beetaloo West, at a similar depth to SS-1H, has the potential to deliver the joint venture’s production ambition of 2 billion cubic feet per day (equivalent to more than 13.0 million tonnes per annum of LNG export capacity) for 40 years from a single landing zone.
end
On with the company news, Falcon Oil & Gas (FO.V FOG.L FAC.F) announced funding, a long-term gas sales agreement and results of the Shenandoah South 1H flow test. The bookbuild has been completed and Falcon has raised gross proceeds of c.US$4.9 million (c. £3.9 million) through the subscription and placing of 64,794,087 shares at an issue price of 6p. The company’s subsidiary also has agreed to grant Daly Waters Energy and a major US-based energy industry service provider overriding royalty interests over Falcon Australia’s working interests in the Beetaloo Sub-Basin exploration permits in return for cash payments of US$3 million and US$1 million respectively. The net proceeds of the fundraising, together with the company’s existing cash resources of c.US$4.3 million, the balance of Falcon’s net carry of A$3.75m due from Tamboran and the consideration from the grant of the ORRIs will primarily be used to fund Falcon’s share of estimated capital expenditure in respect of the work to be carried out on the proposed Shenandoah South Pilot Project in 2024, including the drilling of two 3,000m horizontal wells and the stimulation and flow test of two wells in the Beetaloo Sub-basin. These proceeds will also enable Falcon to fund its share of the cost of the planned 330km2 of 3D seismic survey around the Pilot area, which it is expected will be acquired during Q4 2024 with processed results being available by Q1 2025. The Beetaloo joint venture now has signed a binding agreement for a long-term gas sales agreement to supply the Northern Territory Government with 14.6 PJ (13.8 BCF) per annum from the proposed Shenandoah South Pilot Project for an initial term of nine years, with a buyer’s option to extend for a further six-and-a-half years. Gas will be delivered to the APA-owned Amadeus Gas Pipeline on a take-or-pay basis at a market-competitive gas price, escalating at 100% of the Consumer Price Index. The buyer’s extension option is at a slightly discounted price. The Beetaloo joint venture is targeting FID on the proposed 40 TJ (38,000 MCF) per day upstream drilling program in mid-2024, subject to securing funding and key regulatory and stakeholder approvals. First gas flow is planned for H1 2026. Falcon holds a 5% working interest in the 51,200-acre area that will include the wells required to deliver the proposed pilot project volumes. The company also announced last week that the Shenandoah South 1H (SS-1H) well in EP117 achieved an above commercial IP90 flow rate of 2.9 million cubic feet per day (normalised to 5.8 million cubic feet per day over 1,000 metres), indicating that future development wells with lateral lengths of 10,000 feet may be capable of delivering average rates of 17.8 million cubic feet per day over the first 90 days of production. The SS-1H well has demonstrated steady gas flows and decline profiles in line with some of the most prolific regions of the Marcellus Shale in the US.
cont.....
'the 1 million acres of deep shale in the beetaloo west, at a similar depth to ss-1h, has the potential to deliver the joint venture’s production ambition of 2 billion cubic feet per day (equivalent to more than 13.0 million tonnes per annum of lng export capacity) for 40 years from a single landing zone.'
https://*******************/p/oilman-jims-letter-28-april-2024
That is exactly where I'm coming from. The difficulty is you make an assumption(guess) as to the price reaching its lowest value but who knows that's the difficult part. Having said that what I can see is a huge disconnect between the current value I of the company and the value of huge reserves, which with the recent results they have proved they can develop.
There also appears to be certainty in what they can develop in terms of signing a contract to deliver certain volumes of gas.
Atb,
Northern
Marshmill/NorthernM: I had a standing order at US .09 that filled Thursday only to have a partial order at US .0875 filled on Friday. I don't know how low FOG SP goes but I can't help but pick up shares at this point knowing the potential reserves backing them up. What kind of SP response do we get on the two 3K wells to be drilled - I've given up guessing as I seem to always be wrong, but I'm convinced that in the end shares acquired at these prices will be well rewarded. GLA
I must admit it is a conundrum. It is hard to know when the sp will move but given the huge resource at some point if the company is to be sold then surely that will reflect a large capital value of the company compared to the share of the resource the buyer will be buying. All I think we can do is good and wait and if we do believe in the eventual much higher price then buy some more at what looks like the lowest sp it has been for some time between now and then.
Atb,
Northern
Share fails to move despite excellent news.
The stock is dead but not the company.
I hope it goes down to CAD 0.09 - 0.10. I will buy some Falcons in this price range as I think that the company is not far away from monetizing its assets.
I'm firmly in the Wetwater and the Newtofo camp when it comes to Mr Smallfish. I put him on ignore some weeks ago. I don't therefore get upset with a lot of the nonsense he writes on this board.
As for Falcon's future, matters are going to become a lot clearer once we find out how Tamboran is going to tackle its funding challenge.
805slo:
Yes I'm aware that the goal has always been to sell and I have bought into that strategy. My concern is that I expected the share price to increase accordingly (due to test results, proven acerage) prior to any sale. I understand the variety of take out options available and how the selling SP would be derived. Simplistically, as an investor, I want to see the SP grow and then see the another bump for the takeover. Then I'm out. That's what my plan has been since 2017. Others may vary. This M&A will be asset based and my concern is we will not see proper asset value at time of sale. Selfishly, the (my) sell price will not be where I believe it should be. I realize that this is a smart group and I don't have to delve into the details of how M&A's work but that is what my investment plan was/is for this asset. And with all the added delays (goal lines moving), maybe my frustration has surfaced. TGIF. Have a great weekend everyone.
Smallfish9: What did you mean with your following statement - "The only one here who benefits is the latter. Sold, done, out." I took that to mean you had sold and were done with Falcon? If so, why do you continue to provide this board with all your comments? You seem to indicate Falcon has no real practical value. If you are still invested in Falcon I apologize - Just trying to figure out which box to put you in.
Smallfish9 -- while your concerns about Falcon having almost zero value (5%) over the next 130 wells to be drilled around the SSH2/SSH3 site -- even Tamboran's own press release this morning (below) seems to challenge your position that Falcon's value is next to worthless.
While Falcon has pulled back on its fund raising requirements to 5% on that 51,000 acre block (and pushed Tamboran's and Daly Waters massive funding commitments from 38.75% each to 47.5% each on the next 130 wells) -- you seem to have discounted that Falcon, (and more importantly any buyer of Falcon) still has a 22.5% interest in both the remaining 950,000 acres in the Core deep blue area, along with 22.5% interest in the remaining 3 million acres that are covered by Falcon's three permits in the Beetaloo.
"The 1 million acres of deep shale in the Beetaloo West have potential to deliver
Tamboran’s gross Beetaloo Basin production ambition of 2 Bcf/d (~775 MMcf/d net to Tamboran)
(equivalent to more than 13.0 million tonnes per annum of LNG export capacity) for 40 years from a single
landing zone".
Smallfish -- even after discounting Falcon's share of the Pilot area of 51,000 acres (which is only 5% of the entire deep blue core one million acre area) -- Falcon is still has a forward discounted interest of 400 MMcf/d of that gas out of that 2Bcf/d total for just the dark blue core one million acre zone.
This is enough gas (just from Falcon's share of that one million deep blue core area) for someone like Inpex to commit to building their third LNG train in Darwin before their projected start date of 2030 for that third LNG train. What makes Falcon's non-operating position even more important for a potential buyer like Inpex -- is Inpex has no interest in being an operator, but rather just wants access to that Beetaloo gas at the very discounted cost of production (even after the ORRI's and gov't 12% tax rate are included).
Someone like Inpex couldn't care less about Falcon cutting it's interest down to 5% on that current 51,000 acre block -- as Inpex won't be looking for Beetaloo gas to be flowing to that third LNG train until 2030 for their third train proposed start date. While the fit with Inpex as a buyer of Falcon's share of the Beetaloo gas in nearly perfect-- their are numerous sovereign wealth funds in Asia, or other gas companies like EQT -- that won't be too concerned about Falcon missing out on that first 51,000 acre block, but rather will be paying more attention to the next two full length 3km horizontals (that Tamboran and Daly Waters will be paying 95% of the very exorbitant costs to prove up).
Frackme, I'd say you're pretty much correct. Having waited years for a catalyst to finally move the stock price up, getting the catalyst but only losing value, I'd say we're 6-8 months from the next potential event. I think we are looking at years more of waiting or a low ball offer from BS or his associates. If no offer, BS can continue to bleed FOG and TMB for their share of drilling costs over the next 2-5 years, causing more dilution and a cheaper pick up for him. Frankly, I'd rather have the lowball offer and hopefully it stimulates a bidding war. JMHO