The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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.
Mojo - curious if you have any stats to support stating "with Territorians, the vast majority of which oppose any new gas projects."
Also, "gas corporations" are not "greeding themselves out of business". High gas prices are just plain ole simple economics. If "gas corporations" were able to drive the prices high, then why did natural gas prices stay sub USD$3/MMbtu for so many years? There is plenty of competition and incentive for gas producers to sell gas at current prices. I do not subscribe to a conspiracy theory where gas producers around the world are working together to keep supplies low and prices up. There are simply to many companies from too many countries to make that work.
And if you think gas fired generation is expensive, you should look at the real costs of building and producing electricity from solar and wind, taking into account the governmental subsidies, environmental damage to mine the raw materials and to dispose of fatigued carbon fiber turbine blades and old solar panels (see article called a Tsunami of Waste from the Univ of Calgary), and the cost of redundant backup power when the wind isn't blowing or the sun isn't shining. For the 1/3rd of the world that has no energy other than wood, propane (which is entrained in rich gas) may be the only realistic hope for energy. Also, there are no alternatives to natural gas liquids for producing most of the material that everyone consumes.
For anyone with an open mind on the energy transition, I would highly recommend reading the ESG report (https://www.libertyenergy.com/betteringhumanlivesv2) and some of the articles from Chris Wright at Liberty Resources (for example, see https://www.naturalgasintel.com/liberty-energys-wright-sees-long-oil-natural-gas-future-as-energy-transition-is-not-happening). I am not a Liberty investor.
Plato-esque
WW - is that Amplify's project at Soldier Field?
I purchased Tambo on Schwab. I live in the U.S. If I remember correclty, it was a minimum $125 or $150 commission and came out to about $0.0013 per share.
https://investi.com.au/api/announcements/tbn/b3653e0a-d45.pdf
More of the same, but it does also state:
“Our focus continues to be on delivering the M1H well, which is on track to spud with the Ensign 970 rig in
early September 2022. The rig is capable of drilling the proposed 1,000-metre horizontal section within the
Mid-Velkerri ‘B Shale’ with an optimal 5-1/2-inch casing and allow for up to 20 fracture stimulated stages,
which is planned to take place in the first quarter of calendar year 2023. Importantly, the M1H well has
been designed using data from the T2H and T3H wells as well as simulations validated by leading US
independent subsurface consultants, Subsurface Dynamics, Inc.
“This well design is the first step in delivering a US-style shale well in the Beetaloo Sub-basin. The limitation
in delivering a modern US unconventional fracture stimulation and completion program remains the lack of
capable drilling rigs that can achieve more than 3,000-metre horizontal sections. Tamboran has been
seeking to resolve this and is close to finalising the process of importing a ‘best-in-class’ modern fast
walking US drilling rig into Australia.
2000 to 2500 pounds per lateral foot is customary. So, a 3 km or 9,000' lateral would use 18,000,000 - 22,000,000 pounds or 9 - 12 tons.
It will take a lot more facilities than a gathering pipeline to get the raw, unprocessed gas into any residue gas pipeline. There will need to be a gas processing plant, which depending on size and type of technology will cost a minimum of USD $50 to $150 million for a 50 to 200 MMcfd plant, and potentially higher given the remote location of the project. Jemena would be a logical party to construct and operate a gas plant along with its contemplated pipeline, but Jemena will require significant commitments before it constructs such facilities. Gas plants of this size will take over 12-18 months to construct, starting from the date they start ordering equipment.
Thanks Schlemiel. Good find!
Hopefully they are dialing in on an optimum frac fluid and design that results in higher rates. "We don’t yet know which of the 21 stages is giving us the strongest production rates, and therefore which fluid system will drive optimal production and cost performance in development scenarios"
Is there an active message board for Tambo? I believe there shares are only traded on an Australia exchange. BTW, if you have not looked at it, Tambo's June 2022 presentation has some good data. Thanks!
Good points.
Nice volume in London today.
Empire traded almost 5x its average volume today.