Tamboran Resources Corporation (OTC:TBNRF, ASX:TBN) is encouraged by a strong average 60-day initial production (IP60) flow rate of 3.03 million cubic feet per day (MMcf/d) from Shenandoah South 1H (SS-1H) well in the Beetaloo Sub-basin of Australia’s Northern Territory.
This rate was achieved over the bottom 501 metres (1,644-foot), 10-stage stimulated length of the 1,020-metre (3,346 ft) lateral section within the Mid Velkerri B Shale and was normalized to 6.0 MMcf/d over 3,281-feet (1,000 metres).
The SS-1H flow test in the Tamboran B2-operated Exploration Permit EP 117 indicates that future development wells with lateral lengths of 10,000 feet may be capable of delivering average rates of 18.4 MMcf/d over the first 60 days of production.
Supports initial development
Managing director and CEO Joel Riddle said: “The SS-1H well continues to demonstrate a steady, low declining type-curve and holding its downhole pressure, which implies the well is connected to a world-class reservoir with a strong pressure regime in the Shenandoah South area that supports initial development activities in the region.”
Testing was carried out following the installation of production tubing and a three-week soaking period to allow for water used in the stimulation process to be absorbed by the shale.
The soaking aims to increase the relative permeability to gas of the formation and enhance future production performance.
Testing progress
During the initial draw down period from January 25 to February 8, 2024 (~13.3 days), the choke was opened from 16/64” to 40/64” over staged intervals resulting in gas rates from 12.9 to 3.0 MMcf/d, with an average of 3.5 MMcf/d and 46.2 MMcf cumulative production over that period.
In the initial draw down period from January 25 to February 8, 2024 (~13.3 days), the choke was opened from 16/64” to 40/64” over staged intervals resulting in gas rates from 12.9 to 3.0 MMcf/d, with an average of 3.5 MMcf/d and 46.2 MMcf cumulative production over that period. Flowing wellhead pressures were drawn down from 4,611 psi to 792 psi.
During the subsequent continuous flowing period from February 8 to 24 (~16.7 days), the choke was opened to 43/64” at the beginning of the period, resulting in gas rates from 3.3 to 2.9 MMcf/d, with an average of 3.0 MMcf/d and 50.3 MMcf cumulative production over that period. Flowing wellhead pressures were drawn down from 792 to 578 psi.
The following continuous flowing period from February 25 to March 25 (30 days), saw the choke left unaltered at 3/64”, resulting in gas rates ranging from 2.9 to 2.76 MMcf/d, with an average of 2.83 MMcf/d over the period. Flowing wellhead pressures were drawn down from 578 to 530 psi.
Confident of commercial potential
Results achieved by Tamboran continue to demonstrate that the 1 million acres below 8,850 feet (true vertical depth) in the Beetaloo West region is one of the most favorable places to anchor the initial development.
“These rates continue to track average flow rates from some of the core regions in the Marcellus Shale basin in the US, which gives us confidence these rocks can produce to commercial quantities with potential to provide energy security to the Northern Territory and East Coast Australian gas markets," Riddle said.
The company will continue flow testing until IP90, which is planned to be announced in late April 2024.
Tamboran continues to undertake Front End Engineering and Design (FEED) studies on the proposed Shenandoah South Pilot Project. The company expects to take Final Investment Decision (FID) in mid-2024, subject to funding and key stakeholder approvals.