Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Great post here from newtofo on Jan 29th. He seems to know his stuff! :-)
"Falcon could very easily have to contribute funds in 2022 towards the final costs of the two horizontals planned for the existing Amungee well pad. In the press release two days ago -- POQ stated: "Falcon remains "LARGELY" (circa 75%) carried for 2022, with the "balance" of costs being funded from existing resources".
This statement by POQ indicates that existing resources (approximately $8 - $9 million in Aussie dollars left in Falcon's bank balance) may be required once Origin has reached it's agreed JV limit of spending. Even though Origin will be drilling both 2 km horizontals on the existing Amungee well pad (which will help reduce the overall cost structure in 2022, but as Darnit will note -- still probably the most expensive in the Beetaloo ) -- it is worthwhile keeping in mind that the drilling and fracking expenses aren't the only funds that Origin is spending on this JV. All the ancillary costs at head office for data room work, assigned personnel, and overhead costs are added in to the mix of what Origin is spending in 2022 and will add $millions more to the overall budget.
I am hopeful that Falcon has enough in the bank to cover their 22.5% of the final tally for 2022, but I am also expecting to hear of a private placement or further dilution with a funding raise on the LSE sometime this year. There is the OORI to consider in May -- which will most likely get moved further out at a significant bonus to the ORRI holders, but if Falcon is not sold before 2023 -- then any Pilot Production plans will have to be funded to the tune of Falcon's 22.5 % -- which will be fairly significant."
I hear ya, Betyar. And, I like the optimism! :-)
Seems like things always happen at the end of timeframes or even later than that. My guess is June before we hear. Just my $.02. Glad to be wrong though!
TBN just released their revisions last week, so I don't see anymore news for a bit. This is from their last release.
Further market updates on T2H and T3H are anticipated following the installation of tubing during
the second quarter of calendar year 2022.
I'd look more into TBN settling their land dispute and re-submitting their EMP so they can start Mavericck in the 2nd quarter.
Cont..
Empire, which has yet to frack its first horizontal well in the area, said on Monday the Beetaloo basin was in a “pivotal” period given the drilling and testing now under way or planned.
Like Mr Riddle, Empire managing director Alex Underwood pointed to the critical situation in global energy security, with severe energy shortages in Europe, record high international gas prices and geopolitical tensions.
“It’s sort of playing out like everyone had feared 12 months ago,” Mr Riddle said, pointing to high prices plaguing Europe, partly driven by under-investment in new supply.
“I compliment the federal government in being proactive in trying to simulate activities like in the Beetaloo to bring forward new supplies so that we in Australia are not in a situation like in Europe, where there is not a lot of organic supply sources to turn to to try to solve their energy crisis,” he said.
“I think the work we’re doing in the Beetaloo, really mid term and long term ... is going to work to offset a lot of the supply crunch that you’re seeing in Europe.”
https://www.afr.com/companies/energy/bumps-in-road-towards-beetaloo-gas-20220202-p59t6l
Cont...
More effective fracture stimulation designs
Tamboran, which is backed by US oil and gas billionaire Bryan Sheffield, advised in December that independent analysis estimated that fracked horizontal wells in the Beetaloo needed to yield at least 3 million cubic feet per day of gas per 1000 metres of horizontal well section to be commercial.
The 30-day flow test at the two Tanumbirini wells achieved normalised rates of 2.5 million and 2.6 million cubic feet per day.
But Mr Riddle said the commerciality threshold estimated by Santos and Tamboran was about 2 million cubic feet per day, while independent modelling showed the potential in future wells for production of more than 5 million cubic feet per day per 1000 metre horizontal section once fracking was optimised.
He said experienced investors in shale such as Mr Sheffield understood that “this is the natural trajectory” for new basins looking to be unlocked for commercial production.
“The rocks are working as expected and the next steps are to optimise the results with larger and more effective fracture stimulation designs,” he said.
Shares in Tamboran, which dropped 13.5 per cent on Tuesday after the results were released, regained some of that ground on Wednesday, climbing 4.9 per cent to 32¢.
‘A bit ahead of itself’
Analysts caution that work in the Beetaloo remains in its early stages, and extensive gas processing and pipeline infrastructure will be required to bring gas to market, requiring a large resource to warrant the cost. At the same time, the climate for such long-dated investments in new fossil fuel developments looks set to get increasingly difficult as climate pressures mount in the journey towards net zero emissions.
One energy analyst suggested that the market had “got a bit ahead of itself” in terms of expectations for Beetaloo gas, noting that the US’s extensive gas infrastructure, well-developed service industry, easier land access and huge domestic market all provided significant advantages over Australia in terms of shale gas development.
“Where is the infrastructure, where is the market? It’s very long-dated,” the analyst said, pointing out that there was “no line of sight” to earnings from Beetaloo gas.
Mr Riddle said the expert team Tamboran had brought together would “accelerate the learning curve” towards development and help bring down well costs.
The Santos/Tamboran venture is one of a handful now working on drilling and testing for gas in the Beetaloo, including a venture between Origin Energy and Falcon Oil & Gas, and Empire Energy, which is drilling in its 100 per cent-owned acreage.
Cont...
Lacklustre drilling results in the much-hyped Beetaloo Basin in the Northern Territory have stoked doubts in the market of whether the shale gas-prone region will live up to the high expectations of industry and governments.
Initial flow test results released on Tuesday by Tamboran Resources fell short of the threshold that some say is needed for commercial flows, highlighting the time still needed to prove up the promising gas resources in the remote region.
The drilling taking place in the Beetaloo will be critical to determine whether the region lives up to its early promise as a potentially large, lucrative source of gas that could rival the quality of some of the shale basins that transformed the US from a gas importer into a huge exporter.
The region about 500 kilometres south-east of Darwin is one of the undeveloped gas provinces receiving federal government funding as part of Canberra’s plan to support economic recovery from the COVID-19 recession. The controversial policy has been slammed by the Greens but Labor has largely backed the program.
The awarding of $21 million of federal grants to Beetaloo explorer Empire Energy was blocked in the Federal Court in December, but federal Resources Minister Keith Pitt said at the time the ruling cleared the way for the development of gas in the basin.
While Tamboran chief executive Joel Riddle said there was no justification for any disappointment on the latest results, some in the market are asking whether they are good enough to convince Tamboran’s senior partner in the drilling, Santos, to fund further work there. Funding for the current phase of work is already committed.
“In early wells it’s quite normal to get a conservative result like this because that will allow us to get a stepping stone into the next series of wells,” Mr Riddle told The Australian Financial Review.
Con't....
cont..
May – December 2022: Wells 1 to 3 planned at Lease Pads 1 and/or 3 and/or 4
a. Mobilise drilling rig and associated facilities to Well 1 at Lease Pad 1 “Maverick T463 A1-1H”
or Lease Pad 3 “Maverick T463 D3-1H” or Lease Pad 4 “Maverick T535 A4-1H” pending
readiness and other prioritisation factors (well name and exact Lease Pad will be advised to
DITT and DEPWS prior to spud)
b. Mobilise and construct camp as needed at “Well 1” or one of the main camp locations at
Highway Camp or Lease Pad 1 Camp
c. Progressively mobilise and fill water tanks as needed
d. Drill vertical pilot hole at "Well 1" to a prognosed total depth of approximately 2,500-3,500 m
e. Prepare well for horizontal drilling as per Sweetpea’s Well Operations Management Plan
(WOMP) by cementing deepest section of the pilot hole and setting a kick-off plug or whipstock
f. Drill, case and cement horizontal well and test as required under WOMP to confirm well
acceptance criteria are met
g. Mobilise rig and other necessary equipment and material to “Well 2” and repeat steps (d) to
(f)
h. Mobilise hydraulic fracture stimulation and testing spread and other necessary equipment
progressively to “Well 1” and “Well 2”
i. Undertake multi-stage hydraulic fracture stimulation operations and commence testing
operations at “Well 1” and “Well 2”
j. Mobilise rig and other necessary equipment and material to “Well 3” and repeat steps (c) to
(f)
k. Demobilise and/or stack drilling rig and hydraulic fracture stimulation spread and equipment
for wet season.
Drilling, Stimulation and Testing EMP
Erosion and Sediment Control Plan
Revision 4 – 10-Jan-2022
Prepared for – Sweetpea Petroleum Pty Ltd – ABN: 472 074 750 879
AECOM 7
• April – December 2023: Wells 4 to 6 at Lease Pads 6 “Maverick T536 A6-1H” and/or Pad 5
“Maverick T535 B5-1H” and/or Pad 7 “Maverick T536 C7-1H”
a. Mobilise hydraulic fracture stimulation and testi
https://depws.nt.gov.au/__data/assets/pdf_file/0003/1083261/emp-swp3-1-well-drilling-hydraulic-fracture-stimulation-and-well-testing-emp-ep136-appendices.pdf
I see there is a EMP up for public comments for EP136. By far the most extensive EMP I've seen.
There is a section on the stakeholder starting on page 535. Only skimmed through, but it looks like there was a hearing between Tam and Rallen and a decision in Feb 2022.
As for the activities proposed...page 50
The activities described above are planned to commence in early 2022 and proposed to be continued
over a multi-year period. Sweetpea propose to commence rig mobilisation from May 2020 and
commence the first drilling activities around June 2022. HFS activities will not commence until later in
the year (from approximately September/October), with testing activity to follow directly after the
completion of HFS activities.
Sweetpea proposes to commence drilling a vertical pilot exploration well and horizontal exploration
well on either Pad 1, Pad 3 or Pad 4 in the northern area of EP136. In total Sweetpea plan to drill up to
three vertical and horizontal well pairs (i.e. a single well head and a single well as it relates to the
seven wells approved under this EMP) in 2022, as outlined below, pending funding, timing of
necessary approvals and schedule. Each well is estimated to take up to 70 days to drill, up to
approximately 30 days for HFS, followed by testing over 30 to 90 days. Approval is sought for the
possibility of testing up to 300 days if testing data are ambiguous and a greater volume of data are
required to inform future exploration and appraisal activities, this is considered more likely on earlier
wells in this seven-well program. Fracture stimulation and testing of these wells could occur in 2022 or
2023 pending timing of rig release, approvals and baseline water monitoring, and other necessary
preparations.
A high-level, indicative activity schedule for drilling, fracture stimulation and testing operations, is
summarised below (note that some steps occur in parallel not in sequence) and in Table 2; testing and
well maintenance activity is assumed to be ongoing throughout the period once wells are brought
online for testing. The priority and order of wells and lease pads may be varied pending operational
readiness, access feedback from stakeholders, and/or exploration results, however, there will be no
change to the risk assessment and/or impact as a result of such schedule variations and Sweetpea
will provide updates to DEPWS, DITT and any impacted stakeholders.
cont...
Well was shut in during early January for weather reasons...
“Fracture stimulation of T2H and T3H within the Mid-Velkerri ‘B’ shale was conducted across 11 stages
over a 660-metre lateral interval and 10 stages over a 600-metre lateral interval respectively during
December 2021. Both wells were undergoing clean-up activities and flowing gas to surface at the end of
the quarter. Operations were interrupted and the wells shut-in due to weather for a short period in earlyJanuary 2022. Testing operations have since resumed and gas is continuing to flow to surface. We expect
to be in a position to announce initial flow rates in the near-term.
https://hotcopper.com.au/threads/ann-december-2021-quarterly-activities-report.6546869/