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Chemical Giant Enters U.S. Shale With $1.4 Billion Acquisition. By Tsvetana Paraskova - Feb 22, 2023, 3:13 AM CST
One of the world's largest chemical makers, UK-based INEOS, has entered U.S. oil and gas production after agreeing to buy Eagle Ford assets from Chesapeake Energy for $1.4 billion, thus gaining access to cheaper natural gas.
The deal marks INEOS Energy's entry as an operator into the U.S. onshore oil and gas market, as it acquires 2,300 wells producing net 36,000 barrels of oil equivalent per day (boed). The acquisition, which includes production and exploration leases across 172,000 net acres, is expected to be completed in the second quarter of the year...
https://oilprice.com/Latest-Energy-News/World-News/Chemical-Giant-Enters-US-Shale-With-14-Billion-Acquisition.html

Published 21 February 2023

Joel Riddle, Managing Director & CEO of Tamboran Resources joins the latest edition of the Investor Podcast Series to talk about Tamboran’s recent acquisition of Origin Energy’s Betaloo basin assets, and the opportunity they saw in this to improve domestic energy security in Australia. He also highlights how the Betaloo basins can help to provide reliable, low carbon gas to Asian & European markets as both regions seek to replace Russian gas supply. Joel then discusses the opportunities that Tamboran and its investors saw to bring proven US shale technologies and expertise to Australia, alongside their potential to transform both the local economy and energy supply.

https://energycouncil.com/articles/joel-riddle-managing-director-and-ceo-tamboran-resources/

Thanks rscas n otd, I don't know the other forum you mention, is that worth looking at?
As for fogs valuation, I wouldn't write off the $10, the last couple of years has shown what a crazy world we live in, and the Beetaloo hits all the right notes, so if the timing is right, anything is possible! It appears we will be in a good position to negotiate in the not too distant future. GLA

Thanks guys, yes the Hannam analyst report states that '' It should take 2-3 weeks to complete the 24 stages, at which point the well will be put back on production with an initial clean-up of frac fluid taking a few weeks before gas flow begins. We expect to see initial flow rates by mid-April and the IP-30 rate by mid-May. The flow rate to focus on is the IP-30 rate normalised to 1,000m, which for a commercial discovery is expected to be >3mmcf/d with TBN estimating in its base case 5.5mmcf/d. At least 2 more wells are expected to be drilled in 2023, with locations yet to be finalised.
GLA.

Thanks Schlem, great to see the SP having a small lift, I hope the positivity builds and the SP can move upwards again on more news.

Gas industry, NT government welcome report's findings
The NT director of the Australian Petroleum Production and Exploration Association (APPEA), David Slama, said he welcomed GISERA's report and said Beetaloo gas would help provide cleaner power as coal stations shut down.

"The report also highlights a range of technological solutions that can help the development align with Australia's climate mitigation goals," he said in a statement to the ABC.

"Australia's oil and gas industry … is a major investor in renewables, carbon capture and storage, and other emissions reduction technologies, with billions of dollars of investments."

A gas fracking well established in a clearing in scrubland.
Gas is being extracted from exploratory wells drilled in the Beetaloo Basin.(ABC News: Hamish Harty)
In a statement, a spokesperson for the NT government said the GISERA report showed the risks of onshore shale gas production "could be mitigated, reduced or in some cases eliminated".

"This takes into account the recommendation that we seek to ensure no net increase in life cycle greenhouse gas emissions emitted from the onshore gas industry in the Territory, and the NT will continue to cooperate with the Australian government to this end," the spokesperson said.

"The government will consider this report in future decision making for emissions management of the petroleum industry and in developing an emissions reduction strategy for the NT."
Article taken from abc. net. a

Thanks Schlem, good to hear that Tamboran are welcoming the proposal, they mention the scope 1, 2 and 3 emissions, info relating to this is copied below:
If you’re hearing about Scope 1, 2 and 3 emissions for the first time, it’s unlikely to be the last. Think of it in terms of three categories of emissions;

Scope 1 emissions— This one covers the Green House Gas (GHG) emissions that a company makes directly — for example while running its boilers and vehicles.
Scope 2 emissions — These are the emissions it makes indirectly – like when the electricity or energy it buys for heating and cooling buildings, is being produced on its behalf.
Scope 3 emissions — Now here’s where it gets tricky. In this category go all the emissions associated, not with the company itself, but that the organisation is indirectly responsible for, up and down its value chain. For example, from buying products from its suppliers, and from its products when customers use them. Emissions-wise, Scope 3 is nearly always the big one.

Info from delloitti.com

Are there any thoughts on the numbers that need to be achieved for the carbon offsetting to satisfy Ref 9.8? My thoughts are that this is going to be achievable, but what this means for the short term I don't know. I'm sure that Tamboran will have a plan up their sleeve and will give their thoughts on this when they start talking again. GLA.

.... All scenarios assumed that the source of onshore shale gas would be the Beetaloo Sub-basin and that extracted gas would be processed before being transported by pipeline to Darwin for further processing and use.
The mix of mitigation or offset options assessed for each scenario depended on scale, availability over the lifetime of the gas development, technical feasibility, indicative cost, and a priority for local, well-governed schemes. They included mitigation activities during production, potential carbon capture and storage based out of Darwin, savannah fire management and other land-based offsets.
It showed that for the lower impact scenarios (365 PJ/year production) the majority of GHG emissions could be mitigated or offset with options available in Australia. The higher impact scenario (1,130 PJ/year production) would require international offsets in addition to mitigation and offsets within Australia.

mirage news. com 10th Feb 2023

A report published today by Australia’s national science agency, CSIRO, provides an assessment of options to mitigate and offset greenhouse gas (GHG) emissions associated with potential production and Australian consumption of gas extracted from the Northern Territory’s Beetaloo Sub-basin.

The research addresses a recommendation of the 2018 Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, chaired by the Honorable Justice Pepper. Recommendation 9.8 was seeking to understand potential greenhouse gas emissions as a result from any onshore gas produced in the NT in order “That the NT and Australian governments seek to ensure that there is no net increase in the life cycle GHG emissions emitted in Australia from any onshore shale gas produced in the NT”.

The research was undertaken by CSIRO as part of GISERA, an alliance led by CSIRO which is a collaboration between CSIRO, commonwealth, state and territory governments and industry.

GISERA’s purpose is to work with the community to undertake research about the potential or actual impacts of gas development, across major environmental and socio-economic topics. The type of research projects GISERA delivers is decided by committees in each geographical region, with the community voice in each committee always carrying the greatest weight. All research is publicly reported and peer reviewed.

Continued next...

Thank you for your information and thoughts, exciting times ahead! The article references by Darnit suggests that India want more gas to aid their transition away from coal.
This may be where Natasha Fyles may use their needs to help offset Beetaloos net zero emissions...
"If, for some states that don't have the gas and they need the gas, they have to understand how we can work together, so we can all have that sustainability into the future."
It seems this part of their plan is being developed.. GLA

Tamborans twitter feed say that Tamboran has signed a contract with Condor Energy Services Ltd to undertake the stimulation program within the Amungee 2H well in Beetaloo Basin EP 98.

Condor will provide coiled tubing services to complete up to 24 stimulation stages within the Mid-Velkerri “B Shale”.

Thanks for the info, good to read that the highway project will contribute to the delivery of Infrastructure Australia’s 2021 high priority initiative, enabling-infrastructure for developing the 'world class shale gas project' in the Beetaloo Sub-Basin.
Is great to read also that the indigenous peoples are involved in this infrastructure work too. GLA.

Happy New Year to all the long term holders of Falcon and to POQ. It's been another long year but we now have a few more positives for us to move forward with. We have a driving force in Riddle, who has good contacts and expertise. POQ appears to have played a good hand in the deal he has done with Tamboran in September. As Poods says, the geology is the reason we are here, and Ridle has the team to do what counts. GLA, Here's for a very happy and rewarding New Year!

Thanks JS, Empires letter to shareholders is encouraging for the Beetaloo, although they show concerns about the proposed gas price cap, the Beetaloo and gas exports are exempt from any price caps. Part of Empires letter to shareholders Is copied below;
In the third quarter, Empire executed the largest fracture stimulation in Australian history, executing 21 stages in the Velkerri B shale in the Carpentaria-2H well. The results were highly encouraging, characterised by a peak flow rate of over 11 million cubic feet of gas per day, and an average normalised flow rate (per 1,000 metres of horizontal section stimulated) of 2.6 million cubic feet per day over the first 30 days. Empire is currently carrying out additional test work on this well which is providing critical insights into how to optimally produce gas from this huge resource.
Empire recently drilled the longest horizontal well in the history of the Beetaloo Sub-basin, Carpentaria-3H, with a total horizontal length within the target B-shale of over 2,600 metres, or 8,500 feet. 18 stages have been executed of a ~40 stage fracture stimulation over ~2,000 metre
(6,500 foot) of the horizontal section, with results expected in the first quarter of 2023.
These wells can be used as production wells as part of Empire’s rapid commercialisation program, reducing the future capital expenditure requirement to commence commercial gas sales.
Empire is currently drilling its fourth EP187 well, Carpentaria-4V, to gain critical data about the Velkerri resource in the Eastern part of EP187. The well has so far reached a depth of 850 metres (2,790 feet) and is drilling ahead. Success in this well is likely to see a significant increase in Empire’s independently assessed contingent resource across the tenement and allow the company to further advance our technical knowledge set as we learn how to commercially stimulate the Velkerri shale resource in our Beetaloo properties.
Merry Christmas everyone, let's hope for a prosperous New Year!
GLA.

Thank you for your comments, it is certainly a good vote of confidence from a person who knows the industry very well and is willing to place 100K into Falcon.

My opinion is that Natasha Fyles sees the Beetaloo Gas as a huge opportunity for the NT, and it will play an important part of the Middle Arm 'sustainable development project' that will put the NT in a great position for the next 50 years.
It was only last month that Northern Territory Chief Minister Natasha Fyles was angered by the greenies & accused environmentalists of spreading misinformation about this industrial development in Darwin Harbour which the Federal Government had announced $1.5 billion funding for.
It appears that Natasha does see the massive potential for the Beetaloo and the NT, whilst putting sustainable plans in place too. I don't think that she will do anything to slow down progress, and imo, I'm sure that she is very wary of the Environmentalists and the harm they can do given the opportunity.. GLA.

Newty, the rest of the article reads: Labor has previously said it wanted all reforms finalised by the end of this month so production licence applications can be considered next year.
The NT government sees development of the basin as central to its aspirations to grow the small jurisdiction's $26 billion economy to $40 billion by 2030.
It has previously refused to say if production fracking would be allowed to go ahead without the Commonwealth's full commitment to 9.8.
"I'm just saying that if people want the NT's gas, we've got our own goals around net zero emissions," Ms Fyles said.
"If, for some states that don't have the gas and they need the gas, they have to understand how we can work together, so we can all have that sustainability into the future."
It seems to be referring to production fracking only, so shouldn't affect exploration. I think that putting some responsibility on Nations buying the gas could shift the onus away from the Beetaloo, this could be a positive move imo. GLA

ABC News abc. net. au
NT chief minister says states, Commonwealth must help offset emissions to obtain Beetaloo Basin gas.
By Jacqueline Breen and Alex Barwick
Posted Wed 7 Dec 2022 at 7:59pm updated Yesterday at 1:36am
Natasha Fyles with Prime Minister Anthony Albanese in Darwin earlier this year.(ABC News: Ian Cutmore)
The federal government and states with gas shortages will have to work with the Northern Territory on offsetting emissions if new supplies from the Beetaloo Basin are to be unlocked, Territory Labor says.

Key points:
A new report says an agreement to ensure all emissions from fracking the Beetaloo Basin are offset is "still being worked out"
Labor has said fracking will not commence until the regulatory overhaul is complete
Natasha Fyles says governments facing an energy crisis must work with the NT "if they want our gas"
The comments from Chief Minister Natasha Fyles come as eastern states brace for more gas price hikes and the federal government finalises plans for an emergency price cap.

The NT does not face the same price pressures but is racing against the clock to finish an overhaul of environmental laws and policies it has said must be complete before production can begin in the gas-rich Beetaloo Basin....

OilandGasJournal. Com
22 November
Tamboran Resources Ltd. hopes to book a potential 5 tcf of proven-plus-probable (2P) natural gas reserves in Beetaloo subbasin onshore Australia by 2025, starting with its expected 2023 sanctioning of Block EP 98 pilot development.

“We will drill, fracture stimulate, and flow test two wells within EP 98. These wells aim to demonstrate the commerciality of the acreage and de-risk…commitment to sanctioning of the 100 terrajoule/day (TJ/day) pilot development with our JV partners Daly Waters Energy and Falcon Oil & Gas Australia Ltd.,” the company said at its annual general meeting. Tamboran added that it would continue front-end engineering and design activities for the proposed development, including working with regulators and property owners and land access and pipeline corridors.

The company plans to import a Helmerich & Payne Inc. FlexRig into Australia for the pilot— describing it as “the only rig capable of drilling the more than 3,000-m horizontal sections within the Mid-Velkerri B Shale”—and have it operational by mid-2023. It also continues to look for partners to help it accelerate Beetaloo commercialization....