Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
@Beetaloo, not too sure. EEG running lean ops (low burn rate) and using an external project management & well engineering co to plan and drill for them (1/2-1/3 cost of the majors). Rig mobilization is an expensive business (>3MM; large Ensign 970 may cost even more), and when drilling only one well 100% cost is allocated to it. Planning for contingencies costs money - switching from horizontal to vertical at the last moment would see costs (like 4-1/2" casing & wellhead) already incurred.
Probably high legal costs for the land access dispute. Inefficiencies in land clearing/wellsite preparation caused by the clearing moratorium.
Drilling itself is likely ~half as evident from $15.4MM spent in the quarter when M-1V was done - page 2 here https://www.investi.com.au/api/announcements/tbn/53fe8110-7f9.pdf
Costs will come down, eventually. Hope we'll stay solvent to see it:)
Depends whom you ask. EEG drilled horizontal (1.35km lateral section, total length 3km) for $11m. TNB announced on Fri spending $37m for the same length vertical (maverick 1). Origin Amungee 2 & 3 wells estimated to cost 40m each to drill & frac.
Silver City Rig 40 confirmed in TBN Q1 release, end of Oct. Back to drilling A2H and A3H from different sites. Only 1km laterals & 20 stages each. A3H delayed bc 6 months of groundwater baseline regulatory requirement. $37M attributed to the Maverick well (3km vertical).
https://www.investi.com.au/api/announcements/tbn/53fe8110-7f9.pdf
The black thingy is likely MPCK Flexipond https://www.mpckinetic.com/fluidmanagement
Coordinates are matching that of the Amungee NW-1 pad where NW-2H should be spudded by the end of October. Gotta be Silver City Rig 40 moving in
It gives me joy to see greenies losing their **** :)
Just add gas...
There is also a potential geothermal project somewhere in that general area, although the early stages
in a certain Norther country, there is a saying about bickering over the skin of a bear you are yet to hunt
not a flare and can't see the rig there. Unsure what the bright spot is, maybe ground preparation for the tank
This government is hopeless. In a slight turn of socialist fashion, they are trying to sell capitalists a rope to hang themselves, i.e. pay for more regulations. Don't trust when anyone from Labor tells you they want more business and jobs - look at what they do
https://territorystories.nt.gov.au/10070/889567/0/0
The second horizontal well in the basin this year is spudded. Probably the only well with a chance of frac before YE.
https://app.sharelinktechnologies.com/announcement/asx/24c4691054979ca84917111ca8bd4035
C-2H closed for soaking; velocity string wasn't required (indicative of a better rate than T2 & T3).
Hopefully two more horizontals (Amungee 2 & 3) and one vertical (Carpentaria-4V) this calendar year. Fingers xssed for the weather to remain dry
@smallfish9, I've referred to them as a US shop because Tamboran does so. Yes, I know who they are; speak to them, and IMO, there are no silver bullets flying from their general direction. We'll get it worked out, just need time, capital and government out of the way
@Oleo economics of synthetic oil base mud is such that multiple operators have to share (reuse) it.
@WetWater water is the major (>90%) component of the frac fluid in unconventional reservoirs. Diesel is sometimes used to "slurry" other chemicals, such as friction reducers; although lately preference is for dry addition (cheaper). Unsure what guaram is - if that is guar gum, that's a natural polysaccharide used to viscosify frac fluid (small %%) or your yoghurt. Tamboran is in deep trouble if they are indeed considering anything oil-based. But the people I know there are good engineers, and I haven't heard anything insane. Gotta be a broken telephone issue
not sure what you mean. Rains haven't started quite yet and there are four more wells to be spud (including three horizontals) before year-end
keep dreaming - Impex has Beetaloo acreage (EP318) and did sweet FA with it
@WetWater bunch of nonsense. For starters, one cannot use oil-based drilling mud in NT Beetaloo, much less frac fluid. Good luck finding mineral oil that will pass tests on PAH & BTEX. Practically nobody is using gelled oil nowadays, and I don't know of any shale basin when it was even considered. The shear volumes required will make it impossible. Rock-fluid interaction is a complex subject, and we have a lot to learn with >1.4Ba-old rock; anyone suggesting they know it all already is a charlatan.
Tamboran's "secret weapon" is Subsurface Dynamics - I'm familiar with their work, sort of OK but US-centric and don't understand high-stress shale plays. "Level 10" wells (page 16 of their latest presentation) is a 3km lateral w/ 100 frac stages - it's a standard US approach, and it will use water as a base for the frac fluid. There is no shortage of it up North.
thanks, registered. Dave is a good speaker and very knowledgeable on Beetaloo
80 mil is an estimate of commitments to Origin's JV partner (i.e. FOG) for two wells. If POQ steps to the plate - it'll be between him and the NT regulator to agree on the level of activity to keep the license. The default position would be to honour the agreed number of wells and seismic work. The schedule may be flexible, except the rig is already contracted and some long-lead items (casing, wellheads) had to be already ordered if not readily available from Origin's larger stock.
Let's see.
I doubt it. First, Santos won't give up Barossa as easy. The decision could be overturned on a basis of weak spiritual connection and no significant environmental impact (likely reason that mob wasn't thought to be consulted).
Second, it's a different scale and a much different stage of exploration. Cannot backfill Darwin LNG with Beetaloo gas just yet
was always the plan; just one at a time. What's different is spudding from the same pad with the existing water baseline monitoring which allows to frac 2nd well earlier. It may be pointless as they won't drill it faster than 6 months data from the pad 10km away becomes available. Improves execution efficiency (zipper frac) but at a cost of loosing exploration info
@WetWater - who says about the change of the drilling contractor? I'm sure SilverCity is all ears...