Member Info for WetWater

Hmmm - Looks like they ran into completion issues with the well. I am confident after all the engineering studies on the 1H that the 1H well was a casing deformation - not a 'skin' issue as some want to jump to. I am sure Tamboran/Falcon have known about this problem since the first part of May when they started flowing the well back. To date they haven't come up with a solution so who knows when or if they get this hole straightened out. The geology is solid so what did they do differently between the 1H and the 2H?

I find it equally interesting that Tamboran has not issued a press release as of this morning. It really has me scratching my head that Falcon jumped out in front of Tamboran on this release. This makes we wonder if all is well with the JV - that just doesn't happen.

Another thought, things like this make the sole risk clause important. If they jump back into the Kyalla area, Falcon may want to cut their participation back on that well - particularly if we are not fully carried?

They will get this problem figured out in time - its just extended our payday farther out. Someone indicated this was a POQ problem - that is BS as Falcon was not in charge of the completion of the 2H. We need to lay the blame at the feet of Tamboran or Sheffield's lab which did the analysis. Tamboran is in a real pickle right now. Curious to see their news release when it comes out. They have the H&P rig on site they need to keep busy; they have another fully carried well for Falcon and then two approximate 50% carries on 2 more wells for Falcon. That sounds like serious dilution to me.

Lets see what the Q&A allows.

This is the process I mentioned a few weeks ago that can be used to reduce flaring during flow test procedures. Companies can also use these units as mobile compressor stations to compress gas into a truck to carry to the nearest pipeline as a temp fix until a pipeline is run. Makes green people happier!

Tamboran Resources Limited (ASX:TBN) Enters Framework Agreement with CEFA Facilities

Tamboran secures exclusivity over compression and mini-LNG facilities for potential early Beetaloo production

Sydney, June 21, 2023 - (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNNY) has entered into a Framework Agreement with the Clean Energy Fuels Australia (CEFA) group of companies including Clean Energy Fuels Australia Marketing Pty Ltd (CEFAM) to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo Basin.

These facilities have the potential to accelerate gas production and minimise flaring from appraisal wells under the Northern Territory's "beneficial use of gas" regulation as early as 2024, subject to standard regulatory, stakeholder and joint venture consents and approvals.

The parties will work together to finalise a contract for long term use of the compression and gas conditioning facility for the proposed pilot development. Exclusivity will last until the end of 2023 when the parties expect to move into longer term arrangements.

The existing compression facilities can be expanded to utilise any available capacity in either the Amadeus Gas Pipeline (AGP) or McArthur River Pipeline (MRP).

Tamboran has also secured exclusivity over a mini-LNG facility for four months, which could be deployed to supply remote NT communities or mines by the end of 2024, subject to approvals.

The supply of LNG into the region aims to provide a cleaner and economic alternative to diesel for electricity generation and fuel in the transport and mining industries. This is in line with the Federal Government's Clean Energy Regulations "Emissions Reduction Guidelines".

Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:

"Securing exclusivity over these facilities is a significant step towards achieving first production from the Beetaloo Basin and providing low reservoir CO2 gas to local communities and industry that are currently reliant on diesel for fuel and electricity generation.

"We have committed to the Northern Territory Government to deliver early gas from the Beetaloo Basin to the domestic NT market. This is the first step in fulfilling our promise to provide these remote communities with alternative affordable and cleaner fuel.

"It can sometimes take years to secure this type of infrastructure, and we look forward to working with the Clean Energy Fuels Australia team to progress these agreements. The team has demonstrated strong commercial thinking in offering a solution to achieve early production through this legislati

Jhealy: As you likely know, Falcon is waiting for Tamboran to announce the flow results. Falcon will not be getting out in front of Tamboran with a NR - Tamboran is the operator and as you state we are just a working interest non-operator. There is nothing that says Falcon is going to announce any results prior to/at the AGM. Hopefully that will happen but if it does then that announcement will be coordinated with Tamboran's announcement. One thing we can count on - the 30 day flow rate will be announced soon.

Newtofo: Feel your pain guy! In the same boat as you - many years in this stock but even now under water. I thought I was close to breaking even but just realized last month that I had an issue in my accounts spreadsheet as I hold Falcon in about 10 separate accounts. Not worried, but considering the time value of money, breakeven is not even as close as it appears. Still all this can/will change in a heartbeat, then we will both be on the other side of this deal and join all the newcomers to the party :^(

Seems I'm always early to these investments - comes from being an eternal optimist! I've been often been told I should have been a geologist!

From my US perspective, when the stock gets to US $1.00/share it will all be well worth it.

Borntobougie: Put on your dancing shoes - IMO this is a big tell. Why would Encompass be buying 8.12% of Tamboran a week before the announced flow rate and Tamboran also looking at land for an LNG plant if the Amungee 2H was not anything but a commerical well. Now the next question is just how successful is the 30 flow rate. This is very encouraging in my book.

Ilvelo: Lots of 'green filter boxes' in today's post. I got my money's worth out of the LSE's filter feature today! I don't know which of my favorite 'filterees' was on a tear today but Thank Goodness I didn't have to wade through them. I'm guessing I didn't miss anything of importance :^)

Old2000: "We don't have to participate in the next one" Important point - Tamboran is obligated to carry us on this next 1000 meter test well - No cost to Falcon.

I am still confident that the well will meet Tamboran's expectations ( 5.5 mmcf/day) if not mine :^) If the 1H well flowed 5.2-5.8 mmcf/day then I would expect the 2H to be similar. This normalized stated rate was not a wild guess - I think I heard there were three independent studies that agreed to this consensus rate. I would think that the 5 1/2" casing/ 24 frack stages would allow for better frack but this may not be what HardRock is thinking. If the formation is absorbing the pressure/frack fluid, then I can see where Hardrock is coming from. I think for all of us to try to judge the size of the flare on satellite imagery and then predict a flow rate of the well may not be as accurate at some might thing - I don't think anyone on this board fully understands the ambient temp/humidity' wind etc. - To call the 2H flare size a science based on satellite image could be misleading.

If the well DOES NOT come in at my 6-7 mmcf/d then I'm wrong but the engineers/frack techs will still learn from this well moving forward. I, along with everyone in Falcon, am eagerly awaiting the publicized 30 day flow rate. Being on the same pad as the 1H and being a deeper well (more pressure) than the Empire wells I still look for the 2H to be a respectable well.

No time to worry at this point - it will be what it is in a very short time. GLA

Darnit: I don’t fully understand the soaking. I asked that question of a guy and he wasn’t that familiar with it. If the formation is soaking up the water why do an extended soak. He surmised maybe the soak contains some acid that might open up the pores?

I personally would think the longer the soak the less pressure for flow back but then I’m not an engineer! Obviously the Empire guys know what they are doing.

Small world - I ran into an engineer today that helped design the Tamboran frack. I asked him if he had any news on the results - said he hadn’t heard anything. I told him I would let him know in a week or two how good of a job he did :^). Talked to another engineer that was very familiar with the Beetaloo - he verified that the Velkerri is a very dry gas formation and that water is not an ideal proppant carrier for a Velkerri frack - this formation acts like a sponge and soaks up the water and pressure which reduces the flow back pressure and the recovery of frack fluid. I guess when that’s all your allowed then that’s what you use!

Newtofo: Thanks for answering our friend. For someone who has sold out of Falcon he sure likes to throw shade!

He is equating fracking to soaking - to different completion techniques. While soaking can be beneficial, it can also damage a well as he mentioned. I have talked to an engineer that said it’s possible that soaking might damage Empires’s wells - the verdict will not be in for a year or more. It can cause a quicker decline rate in the tail of the production curve. Water saturates the pores of the rock past the fractures and in a dry formation such as the Velkerri it can block the hydrocarbon molecules from reaching the microscopic fractures. Even a standard water frac can do the same to a lessor extent . Ideally we should utilize a hydrocarbon based frac for better results but that’s not going to happen in Australia anytime soon. The verdict is out on soaking and we may not have an answer for some time.

As far as the Pinedale Anticline, I am participating in a field about 30 miles from that field. We are using the same engineering company that completed much of the Pinedale. They are using fracking on this new field as they successfully did in the Pinedale. Don.t know where Darnit come up with fracking ruins these fields. Some of these our zones only have an 8-10% porosity and have to be fracked to unlock the gas/oil. Once again we all need to watch what Mr Darnit says!!

Guess we will have some answers on the 2H pretty soon. I truly don’t understand no flare but guessing we don’t have all the facts yet. I still think it will be a nice well - even if it was only a 2-3 MMcf/ d well it would have a flare which we are not seeing. Won’t be long now.

I guess anything is possible but that wouldn't be practical; nor why would Tamboran really care if a flare is visible or not - why conceal it? I'm not concerned that the satellite image is not catching a flare - I just don't think we understand or are privy to what is going on. I'm positive they made some type of well - the 1H made a decent well and the 2H is going to be the same but likely even better (thus my 6-7 mmcf/d guess). If we get to the first week in June and nothing is released, then I'll start scratching my head. I've been in this project too long to start worrying about it in the last 3-4 weeks - I'll just wait for the news - it's going to be whatever it is whether I worry or not!

If the well has problems these guys will get it figured out - Tamboran has the technology and engineering team horsepower to solve any issue. The only thing they can't solve is no reservoir gas - with this shale tabletop formation that's not going to happen - not the way shale works.

Longknife: I am not saying that RECs are being used or plan to be used in the Beetaloo but this is a process used in certain sensitive regions in the US to reduce the need for flaring and methane emissions. For one well it would not be economical, IMO, but then again when you are looking at all the climate sensitivity going on currently in Australia wouldn't this be a great way to help reduce the Scope 1 emissions. If Tamboran is indeed planning to drill as many wells as they intend to drill maybe one of these portable REC skid based systems might be appropriate in the Beetaloo. Just saying this process is possible and if used no visible flare would be seen. I still think that if this was used in the Beetaloo it would have been touted by Tamboran for its enviromentally sensitive completions.

Reduced emissions completions (RECs) – also known as reduced flaring completions or green completions – is a term used to describe an alternate practice that captures gas produced during well completions and well workovers following hydraulic fracturing. Portable equipment is brought on site to separate the gas from the solids and liquids produced during the high-rate flowback, and produce gas that can be delivered into the sales pipeline. RECs help to reduce methane, VOC, and HAP emissions during well cleanup and can eliminate or significantly reduce the need for flaring.

Sandy dune: Possible to do. I have read they utilize this capture process in the Pinedale/Jordon fields in WY. However, if Tamboran was utilizing something like a mobile compressor station, I think we would have heard about it to appease climate extremist.

I feel comfortable with waiting - too early to begin all the fretting. If Origin got a normalized rate of 5.2. - 5.8 MMcf/d there is no logical reason that with 5. 1/2 “ casing and twice the frac stages that the 2H would be less - especially with all the seismic and being off the same pad.

Everyone take a deep breath - we are down to weeks at this point.

Newtofo and board: I wanted to apologize for the previous well information I posted. It has nothing to do with the Beetaloo and therefore didn’t belong on this board. It’s a wildcat well and still tight so I can’t give any specific information. I’ll drop it at that.

Falcon - I’ll buy his snake oil LOL! First well 14,000# downhole pressure and looking like 30 - 60 mmcf/d. Once completed. Well starting to exceed casing shoe pressure so they had to stop drilling with 16 ppg mud at 16,500. Now permitting 37 miles of 24” pipeline - huge discovery. 2 Shallower zones look like 7-10 mmcf/d each.

LSWM Unit - put it on your calendar to check in 2-3 years. You'll then know then where he's been :^)

Newtofo: Yes - lateral and horizontal terms are one and the same. The 3G will be another horizontal test to be followed up, hopefully this year, with the 4H 3000 meter lateral. Things should start moving quicker now.

Hardrock: I have heard the same thing on the 3H being a shorter lateral. If Tamboran is carrying Falcon that would only make sense. Also, two hopefully solid wells will make it easier for them going into the next round of funding. Just my opinion.

Hardrock: Regarding your comments about the supercharged frac pressures dissipating - I heard a PEs comment that the Velkerri B is a very dry formation and for that reason water alone wasn't that effective for fracking as it was absorbed rapidly. My conjecture - if this is the case one might surmise that the supercharged pressures could dissipate quickly and which would call for production tubing and possibly nitrogen to kick the well off? My non-engineer thoughts on this process.

Longknife: Sounds like you suffer the same anxiety I have - the minute I were to get out of Falcon, news will hit and I miss a big move. Been suffering this Falcon anxiety issue for years as a result of the announcement of the Amungee discovery well in 2016. The day before the announcement the stock was about US $.05. The day after the announcement it jumped to about US $.30(?) cents. Even now,7 years later, knowing news in coming in a few weeks gives me pause on selling or trading this stock. I met with my accountant last month - he wanted me to close a FO brokerage account in an entity and move it to another entity - told him that wouldn't work because Falcon was fracking a well with huge potential and immanent news might catch me during the move. Furthermore, I told him Falcon was going to double/triple over this next year and I didn't want to give up any potential long-term gains - he gave me that same side-eye look I get from anyone I tell about this penny stock story. Am I optimistic/crazy or what - Time will tell LOL!