The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
From the image it looks like pond is getting filled (SWIR filter), likely fresh water for now. Cuttings pond is empty. More gear turned up; can't make what it is but we know the rig is getting mobilized from Darwin. Declared spud date is Aug 1st.
Can't relay anything not in the public domain or common knowledge in the industry; I do cherish the trust of my friends and colleagues.
BS is visiting and will be speaking at Energy Club NT dinner https://www.energyclubnt.com.au/event-5319165
Have they had brains, they wouldn't be protesting gas drilling but Gouldian finch habitat destruction under their noses
https://www.abc.net.au/news/2023-07-08/lee-point-land-clearing-cultural-heritage-application/102577448
Industry chatter is six loads were shipped on the first day (last week), and the tentative spud is Aug 1st. H&P brought a US crew. Although H&P is familiar with operating in third-world countries, it will be steep learning.
Technically, Hot Air is gas. We have seen plenty of it from TBN lately
I would use ceramic proppant on a deep exploration well, not sand. Reduces uncertainty of the interpretation of the result. It comes at 2-3x extra cost unless someone is willing to sell their slow-moving stock.
On Hayfield and Kyalla, brief summary here: https://www.bioregionalassessments.gov.au/sites/default/files/gba-bee-stage2-appendix_petroleumprospectivity_final.pdf
Also Apr-21 FOG slides https://falconoilandgas.com/wp-content/uploads/2021/04/FOG-Presentation-April-2021-Final-v2-2.pdf
We can't afford to ignore targets outside Shale B - Beetaloo is still in the early exploration stage
EEG used mostly sand, w/ some proppant to tail-in. Trust Santos was using the same proppant on T2 & 3 wells. 40/70 is most common size in shale world. At 3km I’d use ISP.
If you haven’t realised, SS1 is the Kyalla site - Hayfield was penetrated there and wet; Kyalla shale tested and story to be continued. Moroak isn’t the issue, borehole stability of the target zone is. It’s tricky to find a balance between breaking hole and keeping it stable.
At least the South Shenandoah location isn't in a middle of a flood plane like the Shenandoah 1A was.
EEG hasn't told the market yet when they re-open C3H. If the same 5-month soaking period as on C2H, it'll be the week of July 24th.
If Velkerri B is 700m deeper at SS location, it puts it @~3140m - closer to Tanumbirini wells. Unsure this is a sweet spot - difficult drilling and hard to frac; sand strength may not suffice.
https://apps.sentinel-hub.com/eo-browser/?zoom=15&lat=-16.61978&lng=133.56972&themeId=DEFAULT-THEME&visualizationUrl=https%3A%2F%2Fservices.sentinel-hub.com%2Fogc%2Fwms%2Fbd86bcc0-f318-402b-a145-015f85b9427e&datasetId=S2L2A&fromTime=2023-03-29T00%3A00%3A00.000Z&toTime=2023-03-29T23%3A59%3A59.999Z&layerId=5-MOISTURE-INDEX1&demSource3D=%22MAPZEN%22
Government IS the shark. Energy troubles are self-inflicted
@Wet, he will need your hat as his got quite worn from pulling the magic tricks out.
The acid wouldn't do much unless issue is caused by carbonate scaling (unlikely) - synthetic polymer used in friction reducer is acid-resistant (similar acrylamide group is used to viscosify the acid for acid fracs). It will be effective for guar, but guar will break reasonably well at Amungee bottomhole temperature and is an unlikely culprit of the "skin" (industry parlance for damage).
Rest of the announcement.
Wondering if H&P is starting to question the return of the capital (20+13 for ~36.5MM in committed rig rate)
"Barrenjoey was mandated for the raise.
Tamboran flagged the raising past week, as it announced the Shell and BP non-binding memorandums of understanding and said it had selected pipelines giant APA Group to connect its Beetaloo project Darwin and the East Coast network. APA would fund the build and spend up to $10 million on studies and approvals over the next 12 months.
The company is expecting to supply 1000 terajoules a day or about 365 petajoules a year through each leg. In addition to Shell and BP, it has a 10-year gas sale agreement with Origin Energy for up to 36.5 peta joules a year.
Tamboran is expected to commence its initial drilling campaign soon and is aiming to produce gas by the end of 2025."
It makes one wonder about BS's wits - participating in the raise at -10% of pre-halt price knowing full well only the halt stop it from plummeting 30-40%
Just add gas...
Wet, this wellbore cannot be reused as it is cased and cemented with 5-1/2" to the surface.
Won't be a bad idea to repeat what's worked before betting on untested stuff that flopped on Kayalla (different shale; may be other reasons).
Unsure if the sweet spot is 700m deeper.; it could be shallower.
Hot air is a poor replacement for gas
To think that non-operating partner (BS) can do anything to hurt well performance thus “tanking” the share price is delusional.
Skin is a concept of a pressure drop across infinitely thin imaginary surface. Horizontal wellbore and fracs create negative skin (I.e. stimulation) by effectively increasing contact area with the reservoir.
Skin they referring may be fracture face skin or a choked fracture skin, I.e. damage to rock face or fracture conductivity. Not always fixable. Hope for more details to see if it can be helped
Not disclosing material information may get the director of a listed Australian company into hot water w/ ASX and ASIC
https://www.asx.com.au/documents/rules/Chapter03.pdf
https://asic.gov.au/for-business/running-a-company/company-officeholder-duties/guidance-on-the-duties-of-directors-of-mutual-companies/
Out of Brissie atm, nothing to add to my earlier assessment that use of 5-1/2 CSG wasn’t beneficial for fracs and may have resulted in unnecessary delay in the cleanup.
Regardless of that A2H results are, it doesn’t affect/reflect the Beetaloo potential. Different story for inevitable capital raise, though. Unless these 3 rigs on the auction fetch a hefty sum, of course
NT government, in its wisdom, has introduced changes to the Petroleum Act that increase bonds held by the government (and used as a revenue stream w/ no plans ever to pay it back), orphan wells fund levies, and charges for regulatory activities such as EMP, WOMP approvals. Compliance costs are ballooning. If they want gas - they aren't showing it
That's disgusting harassment. I guess the police force is not on Natasha's side
Kind of bad news, when one has to rely on auctioning three rigs to fund the next well