Member Info for RichGreenwood

This link is to a case study of soaking in the Marcellus. The paper was presented at the SPE/AAPG/SEG Unconventional Resources Technology Conference, San Antonio, Texas, USA, July 2015.

https://onepetro.org/URTECONF/proceedings-abstract/15URTC/All-15URTC/URTEC-2154766-MS/151927

KMJ - it is so early it is really hard to tell, but my hunch is that the rock is going to be better in the Tambo/FOG areas, and those areas are the only thing they have. As an example. the Permian Basin is comprised of the Midland Basin, the Central Basin Uplift, and the Delaware Basin. The Delaware Basin investments soared in value over the last 5 years. EEG is a little more scattered - it may very well end up that EEG is in the best spot, but I sort of doubt it. To state what I noted earlier, I do not want to be cashed out of what might be the best rock at a low price, and miss out on a runup in Tambo. I realize that I am paying a little more per acre, but if this works, this should become worth thousands per acre instead of $50-100. Good luck with EEG, but I am sitting on the sideline for now.

Bouggie - I take it strategic thinking is not one of yours?

KMJ - I had the same thoughts but opted to buy Tambo instead. I know that it is more exposure to the same rock, but we could end up with Tambo acquiring Falcon at a discount once the carry runs out.

I have not searched all of FOG's regulatory filings for this contract, but it is possible it is out there. Deals can be done differently of course, but it is common under joint operating agreements to give non-operators the right to propose subsequent wells in the contract area under the JOA. There have been a lot of lawsuits over this issue. here is a good article if you are interested. https://www.ottingerhebert.com/wp-content/uploads/Be-Careful-What-You-Ask-For-Subsequent-Operations-under-the-JOA.pdf

Some of the LNG facilities operating in the US produce 5mpta. one under construction is estimated to produce 10mpta.

see data here: https://policyintegrity.org/documents/GHG_emissions_of_LNG_export_facilities.pdf
here is a link to a map:
https://www.epa.gov/ghgreporting/ghgrp-emissions-location

TSX closed up almost 18% of slightly above average volume.

Not really anything new in here - https://www.tamboran.com/wp-content/uploads/2022/12/221202-MST-Access-Now-the-Biggest-Player-in-the-Beetaloo.pdf

Newt - it takes a little bit of time and patience. It is called spacing tests. There can be communication (drainage) from wells in the same formation that are drilled to close (or tight) together, and in some instances communication with reservoirs above or below (which we could possibly see, for instance, with laterals drilled in the different benches of the Velkerri, but it can be between different formations in some cases). In shale plays, after there are some exploration wells, and frac designs are optimized, then usually these spacing tests are done, before the producer sets up its corridors and starts mowing down the wells. Can't wait to start seeing Tamboran, Santos and Empire mowing down the Velkerri!!!

As far as how close wells from the same formations can be drilled, the modern practice is to start conservative and do spacing tests. They can determine whether the wells are communicating with on another. THis will be different for each zone in the area being drilled. I have most recently been involved in the Powder River Basin in Wyoming, which has a lot of variability. Operators may end up drilling up to 4 hz laterals within the same 640 acre governmental section (1 mile x 1 mile), so they end up with that design at about 1,000' (330 meters) apart. It will depend on how far the fracks extend etc.

https://investor.laredopetro.com/node/8436/html

Most of the multi wellpad designs I have seen have hz wells with laterals that orient in the same directions. I understand the direction of the hz laterals is based on the natural geological stress, which can result in better fracking. I am sure it depends on the rock and the region, but I do not recall seeing operators in the basins I Have worked in the U.S. doing what looks like a wagon wheel. For example, the laterals may be drilled in a north to south direction. I recall WIlliams drilling 32 laterals off of single wellpads in the Piceance Basin of Colorado. Check out the design aruond page 7 (entitled "Designed ot Maximize NPV") on the attached SEC filing by Laredo Petroleum of its wellpad designs in the Permian. GLTA!!

Hopefully they have plans for the Beetaloo gas.

EIG's MidOcean Energy would acquire Origin Energy's integrated gas business under a proposed buyout.

Sonali Paul, Reuters

Wed, 11/16/2022 - 10:45 AM

Thanks Schlemiel. The speaker is Donny Loughry who is now employed by Tamboran and is an ex-Pioneer geoscience guy.

Sorry Newt, I fat fingered your name.

Net and Oleo - thanks for the reference to page 37. I think the word "Transition" may have been a typo. They may have meant "Transaction", which could mean the private placement with Sheffield and H&P, and possibly include the gas supply deal with Origin. I do not think there is any misleading the market. they clearly state that Falcon has a ROFR. It is also interesting to me that one of Sheffield's colleague (Tom Layman) is on the board of Falcon and Sheffield had purchased a chunk of Falcon. Sheffield obviously likes the Beetaloo. I think it is likely that an astute and lawyered up businessman like Sheffield would have been careful of what he disclosed to whom and when he disclosed because there would be potential tipping issues on insider info and no doubt had confidentiality agreements in place with Tambo and Origin. It is possible that Sheffield wanted to take out both Tambo and Falcon but could not get a deal done yet at a price that made sense at this stage. He certainly needed to get Origin's operatorship in friendly hands to get this developed in a prudent and more cost effective manner. Unfortunately, oil and gas company values are very suppressed - we are seeing many deals in the U.S. sell for PDP values when a few years ago, the undeveloped acreage would sell for thousands of dollars per acre on top of PDP value. Obviously, we will all just need to be decide to either sell some or all of our holdings or and wait and see what transpires. I am a long term holder and still think there is some upside, so I while I am not currently planning to add more, I am not a seller. GLA!!

Newt - where did you see that quote (It is uncertain whether Falcon will exercise its purchase option. If it does, Tamboran will still be required to complete the Transition irrespective of Falcon's position)?

Schlemiel - I concur with your comment about preemptive rights. I have dealt with this twice on large oil and gas transactions and it certainly creates a wild card. FOG could possibly obtain some value with just the threat of exercising the ROFR, but would most likely need to find a party with deep enough pockets and the appetite.

I agree that this is a lot less than what we all had hoped for. However, in addition to the AUS $60 million, there is also the remainder of the Falcon carry that Tambo picked up effective July 2, along with the value of the 5.5% of 77.5% ORR (for that value, consider that Sheffield paid Falcon $6 million for 2% of 22.5%), and ending the negative PR with its ties to the oligarch that owns Falcon shares.

DPressky - the monitoring wells are drilled before the oil and gas test wells to ascertain the baseline. if anything shows up during or after drilling, it will indicate the cause was the oil and gas activity. monitoring wells are also used once a groundwater problem is identitified.