The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
@rsacas, this is just how much they need the well to flow for them to progress to the next stage, which is building a compressor station, gathering network, drilling & stimulating a few wells, and getting approvals, licenses, certificates, etc.
Copy-Paste by FOG:
https://falconoilandgas.com/2023/12/07/successful-completion-of-ss1h-stimulation-program/
Alex Underwood on the subject in 1 min LI video: https://www.linkedin.com/posts/alex-underwood-3a492b2b_today-empire-energy-group-asxeeg-announced-activity-7137303053312946176-xzWn
Empire reported the purchase of the AGL gas plant - saves them an estimated $30MM and shaves off 12 months. The first Beetaloo gas is expected in 2025, via the MRM pipeline. IMO, this is a crucial step to de-risk the play and attract majors.
Fingers xssed for SS1H not to be like A2H
https://app.sharelinktechnologies.com/announcement/asx/1589425137249f568bf375029863e6c2
EMPIRE ACQUIRES FIT FOR PURPOSE GAS PROCESSING FACILITY TO SUPPORT THE CARPENTARIA PROJECT
• Empire has acquired AGL Limited’s Rosalind Park Gas Plant (“RPGP”) for $2.5 million in cash
• This significantly accelerates the path to Carpentaria Pilot Project (“Pilot Project”) production and reduces capital expenditure required to commence gas sales
• RPGP has a design capacity of 42 TJ / day and supported AGL’s Camden Gas Project until it ceased production in August 2023
• RPGP is a fit for purpose facility that has passed Empire’s stringent technical due diligence process
• Empire estimates that the acquisition of the RPGP may result in >$30 million in cost savings and reduce lead time by ~12 months compared to new build alternatives
• Empire is focused on reaching a final investment decision for the Pilot Project in the coming months
Comments from Managing Director Alex Underwood:
"This is a material development for Empire, its shareholders and all stakeholders involved in the development of the Beetaloo Sub-basin, and the substantial economic benefits and energy security that Empire’s Beetaloo project can provide for all Australians. The Rosalind Park Gas Plant has been very well managed by AGL during its time processing gas for supply into the Sydney market and meets the specifications Empire requires for processing its low CO2 Beetaloo gas for supply into NT market and Australian East Coast markets from the EP187 Carpentaria Pilot Project, and in future larger scale development scenarios. This comes at a critical time for energy security for the NT market, given that existing sources of supply continue to decline. Success at the Carpentaria Pilot Project would achieve two critical goals for Empire and its shareholders: one, the generation of material cash flow to support our ongoing growth, and two, demonstration of the long-term deliverability of development wells in the Beetaloo Basin, all while reducing the emissions that would otherwise result from flaring test gas. The Empire team continues its hard work progressing towards a final investment decision for the pilot project, and is targeting the field installation of the RPGP, drilling of development wells and connection of the project to the McArthur River Pipeline in next year’s dry season, which would result in gas sales commencing in 2025.”
@Newtofo, few corrections.
The clown show COP is #28. The depositional environment is not swamp but sea. Calling it swamp gas won't change anything bc COP-going psychopaths are against all forms of energy - it's the population growth they are tackling (by proxy since the "direct measures" are made unpopular by Nazies).
The propellant is to propel, like the rocket fuel. Hydraulic fracturing involves using proppant - to prop fracs open. Sand is the most common form of proppant. Proppant is also often used to denote man-made material, which is stronger than silica sand and more appropriate for SS-1H depth. Hopefully, plenty of proppant pumped into SS-1H will propel the FOG stock price to the moon:)
To keep the confusion levels up, propellant is occasionally used to stimulate oil & gas wells - by creating uppropped fractures with the burn reaction gas
Can't betray the trust of my friends. All I can say - things are on track. As far as I'm concerned, they had all the equipment they needed in the country. But I'm not working for TBN and they know better.
Fig 8 here on the wine rack pattern https://www.aogr.com/web-exclusives/exclusive-story/approach-optimizes-midland-basin-development
@newtofo, it is unlikely that the entire 90m of Velkerri B can be drained by a single lateral. Within that 90m there is a depth window that maximizes production of a lateral placed there. 90m is also likely not enough to do a wine-rack development. At this stage, we'd have to cherry-pick. Just need to find a cherry tree, not a lemon one.
Shale C does not look very exciting from the low-resolution log they had in the presentations. Certainly worth checking potential.
Outside of SS1H results, the amount of dilution from imminent capital raise is anyone's guess. Last time, TBN pulled the rabbit out of the hat. This time around, I'd be scared to put my hand in that hut.
POQ negotiated a very good deal for FOG, IMO.
@newtofo, this smallfish stuff is trivial, already-known things.
Many things make one spot better than another.
If in Brissie - visit Creties Jenkins' QUPEX talk, his UTReC panel session, or one-day course; believe he will touch on it.
It looks like they have started filling the tank on SS-1H. Hope the weather stays dry
https://apps.sentinel-hub.com/eo-browser/?zoom=18&lat=-16.84031&lng=133.65107&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2023-10-30T00%3A00%3A00.000Z&toTime=2023-10-30T23%3A59%3A59.999Z&layerId=5-MOISTURE-INDEX1&demSource3D=%22MAPZEN%22
Posting the link w/o comments
https://investi.com.au/api/announcements/tbn/881c9f17-bc9.pdf
Wet, 300m vertical sections mean nothing for a horizontal well, except one can choose the better part to land the horizontal (they only have logs for that). We will only have 500 m stimulated to guesstimate 3-4km lateral potential
I agree that DFIT "news" is neutral. Going to the Shenandoah area may be driven by its proximity to the Amadeus Basin Pipeline. The capacity of the McArthur River mine pipeline is limited, and TBN likely lost the race to tap into it.
Another driver may be to chaise deeper shales with more gas. That part remains to be tested; the position of the depth sweet spot is not yet known. We need more players trying different things.
Can someone familiar with NT politics explain the meaning and potential implications for shale gas?
https://www.miragenews.com/renewed-ministry-to-build-territorys-future-1113215/
DFIT results (pressure gradient ~same as Amungee and the rest of the basin) and the start of Condor mobilization were announced. Unsure if extra gear sailed or the Australian fleet started to move. Tanks seem dry; they could be covered.
https://investi.com.au/api/announcements/tbn/850b6f47-b9b.pdf
We don't know if the cash balance is before or after paying for SS1H and A3H. Neither do we know what it'll cost to bring the extra frac gear from abroad to have 40K HHP (16 x 2500 https://www.condorenergy.com.au/haudralic-fracturing - ha, they couldn't spell it right) where 15-20K would suffice. Rig is stacked, but the cash counter keeps ringing. 5M /quarter cash burn rate not going away. Capital raising needs some funding.
Inefficiency pains me as well.
POQ is a non-operating partner; all he has to do is nothing,
QGC and Elixir will have their results earlier, Q1-Q2 next year. On the other side of the Southern Taroom Trough; QGC going for horizontals (drilling with Ensign 965 now); Elixir is vertical, spudding SLR 185 sometime this year.
H&P FlexiRig 469 is cold-stacked up north.
@Wet, I wouldn't trust anyone who categorically says that they know what went wrong.
There is a lot of finger-pointing. Design folks are saying their recommendation wasn't followed. Pumpers saying they did everything as requested. Aussies blaming gringos. Pretty sure Americans not thinking highly of their local counterpart.
I have my contrarian opinion on the source of the skin, and nobody convinced me it was wrong. There is likely more than one contributing factor; cleanup, casing size and production tbg played a role. Happens w/ too many cooks.
I am not holding my breath on A3H to produce commercial quantities of gas - too short of the wellbore for it. No aware of plans to sell it (too early).
One cannot use existing A1H and A2H to drill sidetrack or a longer lateral - the current casing is too small for it. Refracs are not feasible (short, damage, and casing issues).
You can drill parallel wells from the Amungee pad, H&P rig 469 is capable of it. I'd try other locations first.
It's a pity they wasted money on G&A, rigs and NG blue-sky wet dreams and are not going for longer laterals and not placing big jobs. Basin needs the good news.