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green rag Guardian says the deal closes in July and Tamboran pays the cost to Origin:
https://www.theguardian.com/australia-news/2022/sep/19/origin-energy-to-quit-beetaloo-basin-gas-project-end-association-with-russian-oligarch-viktor-vekselberg
The deal with Sheffield and Tamboran “has an economic effective date of 1 July 2022”, Origin said.
However, Origin will continue to carry out work on the project until the deal is formally closed. The company said that Sheffield and Tamboran “will reimburse Origin for any costs incurred for the current Beetaloo workplan from the effective date until completion”.
This would mean four horizontal wells drilled and frac'd by July, not two
Origin dumps all of its Beetaloo interest for 60MM and retains 5.5% future royalty.
I'm lost for words.
https://www.originenergy.com.au/about/investors-media/origin-to-divest-beetaloo-basin-interests-intends-to-exit-upstream-exploration-permits/
• Average production rate over the first 30 days of testing (IP30) of 2.4 million standard cubic feet (mmscf) per day, equating to 2.6 mmscf per day per 1,000 metres of horizontal section
• Gas composition data confirms significant methane and ethane contribution with very low CO2 (0.88%)
• Production testing is continuing with an encouraging decline curve profile
• Tracer data is being collected to provide detail on how each of the 21 stages is contributing to overall production
• Carpentaria-3H (“C-3H”) and Carpentaria-4V (“C-4V”) 2022 drilling program on track to commence early October
• C-3H hydraulic stimulation and Extended Production Testing (“EPT”) program to commence immediately following drilling in Q4
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02566731-2A1397806
Decline rate seems a lot lower compared to T2&T3. Similar was noted on Amungee NW-1H. Maybe something to do with level of stress or role of natural fractures. Would be nice to see if remaining water disappears after shut-in period.
Tamboran released IP30 rates after installing production strings.
https://investi.com.au/api/announcements/tbn/a10fe104-8d1.pdf
• The Tanumbirini 2H (T2H) and 3H (T3H) wells in EP 161 (Santos 75% operator, Tamboran 25%) have both achieved average 30-day (IP30) flow rates that exceed Tamboran’s assessed commerciality threshold for a 1,000-metre horizontal well within our Beetaloo Basin permits(1).
• The T3H well delivered an average IP30 flow rate of 3.1 (mmscfd) over a 600-metre completed horizontal section (normalised at 5.2 mmscfd over 1,000-metres) since re-commencement of flow testing in August 2022 following the installation of production tubing.
• The T2H well delivered an average IP30 flow rate of 2.1 mmscfd over a 660-metre completed horizontal section (normalised at 3.3 mmscfd over 1,000-metres). The T2H well had already produced 0.27 billion cubic feet (BCF) prior to the installation of production tubing, and therefore the current rates do not reflect the true potential IP30 of the well.
• Both wells have stabilised and are currently declining in line with pre-drill expectations, which resemble decline profiles from dry gas shale wells in the US. Tamboran plans to release IP90 flow rates during the fourth quarter of calendar year 2022.
• These are outstanding results and provide increased confidence regarding the commerciality of a potential Beetaloo development.
Reserves increased https://investi.com.au/api/announcements/tbn/8d13d765-753.pdf
• Tamboran has increased its estimate of EP 161 (Santos 75% operator, Tamboran 25%) contingent gas resources following a review of extended production test data from Tanumbirini 2H (T2H) and 3H (T3H), an updated development strategy and additional data supporting reservoir continuity.
• The upgrade has been evaluated and certified by leading independent third-party resources certifier, Netherland, Sewell & Associates, Inc. (NSAI)(1).
• EP 161 unrisked gross 1C contingent gas resources has increased 73 per cent to 330 billion cubic feet (BCF) (83 BCF net to Tamboran)(2).
• EP 161 unrisked gross 2C contingent gas resources has increased 164 per cent to 1.6 trillion cubic feet (TCF) (404 BCF net to Tamboran)(2).
• The current 2C contingent gas resources cover approximately 74 square kilometres, which represents less than 4 per cent of the EP 161 prospective acreage, in which Tamboran has net best estimate of prospective resources (2U) of ~12.4 TCF.
The last sat image (31st) differs from the first (6th). A lot. Make you wonder about "decline rate in line with US dry gas" comment.
https://apps.sentinel-hub.com/eo-browser/?zoom=17&lat=-16.39974&lng=134.7015&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2022-08-31T00%3A00%3A00.000Z&toTime=2022-08-31T23%3A59%3A59.999Z&layerId=2_FALSE_COLOR&demSource3D=%22MAPZEN%22
@newtofo, the lag is caused by NT overregulation (courtesy of Labor's "Fracking Inquiry" led by Justice Pepper) - the requirement to establish 6 months of baseline groundwater quality with extensive (and expensive) testing. A set of monitoring and impact bores for each aquifer needs to be in place. It is one month monitoring period for drilling.
Empire's Carpentaria-3H is from an existing pad, the same as one of the Origin wells. Empire will frac this year; Origin - not at liberty to tell
https://empireenergygroup.net/investors/announcements/
Average 2.6 million standard cubic feet (mmscf) per day sustained flow rate achieved over the first 13 days of flow testing from 927m effective stimulated horizontal length
Normalized rate of 2.8 mmscf per day 1,000m of horizontal section Peak rate of > 11 mmscf per day per achieved after a 2day shutin to change wellheads and monitor pressure build up following which the well returned to trend production rate as expected
Currently producing at 2.5 mmscf / day stabilised rate, with water flowback rate gradually declining Flow testing is continuing at a data collected and analysed will be incorporated into the completion design for the upcoming Carpentaria 3H on the same well pad Gas composition data and zonal contribution expected in coming weeks
Preparations for Carpentaria according to plan3H drilling and hydraulic stimulation, and Carpentaria4V drilling, continue according to plan
got it; unrelated to frac - it is a mineral sands project http://www.ilmenite.com.au/Environment/environment#environmentc
Funny how miners can take all the water they want and O&G cannot even store produced water in lined ponds and have to use a closed-top above-ground tank that costs hundreds of thousands. Taking water from surface sources is explicitly prohibited by the Code of Practice
@schlemiel, where is this from? are you at SEAAOC listening to Territory Sands? Bulk of this sand is intended for export and non-frac industries. Similarly, Sloan and Holcim at South Australia aren't too bothered by frac sand because this is a small part of their business.
@newtofo, velocity string is only required when the gas flow velocity isn't enough to carry the water out and it drops back and increases bottomhole flowing pressure, thus reducing the drawdown and gas rates. A simple Turner equation for dry gas suggests the minimum rate of ~1.6MMSCF/D at 100 psi (about the lowest pressure gas separator can operate at) to move the water out when flowing up the casing with an ID of 3.826". This means T2 and T3 rates may have dropped to this level. Let's see.
Let's hope for no clouds tomorrow when the satellite passes so we can see all three flares going strong
Santos
https://apps.sentinel-hub.com/eo-browser/?zoom=17&lat=-16.39986&lng=134.70054&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2022-08-11T00%3A00%3A00.000Z&toTime=2022-08-11T23%3A59%3A59.999Z&layerId=2_FALSE_COLOR&demSource3D=%22MAPZEN%22
Empire
https://apps.sentinel-hub.com/eo-browser/?zoom=17&lat=-16.70015&lng=135.10026&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2022-08-11T00%3A00%3A00.000Z&toTime=2022-08-11T23%3A59%3A59.999Z&layerId=2_FALSE_COLOR&demSource3D=%22MAPZEN%22
Disappointing to see a 40 min slot for the Beetaloo. Will be interesting, though
@dprussky nice! flare looks bigger than the largest of the Santos' flares (2nd well got started a week ago w/ over 4000psi wellhead pressure). Higher calorific value of rich gas?
Haynesville is an overpressured gas shale known for its rapid production declines
https://public.tableau.com/shared/6QBNR5WD9?:toolbar=n&:display_count=n&:origin=viz_share_link&:embed=y
(Source ex-ShaleProfile https://novilabs.com/blog/us-update-through-december-2021/)
Yeap. Appears the wells were re-completed w/ velocity strings in late July
@WetWater, I wouldn't call it a "yard," but yes, SilverCity Rig40 is waiting
The flare stack is in the upper right corner. Postfrac cleanup started on Aug 1st.
Successful Hydraulic Stimulation of Carpentaria-2H
• 21 stages were stimulated, which is the greatest number of stimulation stages in a single well in the Beetaloo to date
• Delivered 927m of stimulated horizontal well bore
• A total of 6,283,200 lbs. of proppant was successfully placed without screen out on any stage
• Fluid flowback has commenced with gas flows expected over the coming weeks
• Accessibility of all stages has been confirmed with coiled tubing
• This stimulation program is forecast to be completed within budget
• Preparations for the 2022 drilling program (Carpentaria-3H and Carpentaria-4V) are on track with an anticipated rig mobilisation in September
• Current cash at bank $42.6 million
https://empireenergygroup.net/investors/announcements/
also, check the opening video from site visit, pretty cool
Just add gas...
There is ~30 TJ/day pipeline parallel to Carpentaria Hwy going to McArthur River mine. Ideal for early production.
NGP was downsized to ~80TJ and got to be looped to expand capacity. Darwin LNG is a more logical destination for Beetaloo gas.
Shortage in NSW and VIC is of their own making; they sit on plenty of gas and blocked pipeline construction. Actions have consequences, let fine people of most populated states understand they've been taken for fools.
https://empireenergygroup.net/wp-content/uploads/2022-03-PESA-News-164-Empire-Energy-feature.pdf
"For the moment, the company has the comfort of nearby pipeline infrastructure offering potential blending supply options to the McArthur River Mine. In addition, the north-south gas artery running from Darwin to Alice Springs could facilitate backfill to the Santos and Inpex-operated LNG plants in Darwin. A significant milestone on this potential path emerged in October when Empire signed a MOU with APA, which owns the Amadeus Gas Pipeline, to explore development opportunities and potential infrastructure development to enable expansion of existing pipelines to facilitate additional supplies to Darwin. Longer term, the agreement envisages development of a new Beetaloo pipeline connecting the Amadeus and Carpentaria gas pipeline to Mount Isa to open up supply to southern markets and to Gladstone, where LNG export plants have been red flagged by government confronting critical feedstock shortages by as early as 2030."
Seems Tamboran agreed to pause activities while NT supreme court is deliberating.
Hope they have managed to drill those water bores required to begin background water quality monitoring - a prerequisite for drilling (1-month data) and fracs (6 months).
https://7news.com.au/business/fracker-stops-nt-cattle-station-road-work-c-7357153
Empire release:
https://www2.asx.com.au/markets/company/eeg
"Carpentaria-2H Fracture Stimulation Update We are also pleased to advise shareholders that preparations for the commencement of the Carpentaria-2H (“C-2H”) fracture stimulation are well advanced. Equipment and crew are being mobilised and multi-stage fracture stimulation is expected to commence in the first week of July. As C-2H is Empire’s first horizontal well and will be only the fourth Velkerri Shale horizontal wellbore to be fracture stimulated and production tested in the Beetaloo Sub-basin, fracture stimulation and well completion practices are being refined. Continued refinement and development of Beetaloo Sub-basin specific drilling and fracture stimulation will benefit Empire’s future horizontal wells. A period of flowback of hydraulic stimulation fluids is anticipated prior to gas production as each of the treated stages progressively cleans up. Toward the end of the C-2H production test and later in 2022, we will move on to drill the Carpentaria-4V well and drill and fracture stimulate the Carpentaria-3H well. Empire looks forward to updating shareholders on what is the most active work program in the Company’s history. "
Frac activity starting next week. First production numbers may be expected end of Aug-Sep. Fingers xssed