Tamboran Resources Ltd has taken another step toward its goal of delivering much-needed gas to the Northern Territory (NT) and East Coast markets of Australia with drilling underway at the Shenandoah South 1H (SS1H) well in the NT’s Beetaloo Basin.
This well is being drilled with the Helmerich & Payne, Inc. (H&P), super-spec FlexRig® Flex 3 Rig and is targeting the deeper Mid-Velkerri 'B Shale' in EP 117.
Well expectations
TBN expects that the deeper shale will host higher pressures and therefore deliver higher flow rates than the Amungee 2H (A2H) well location in EP 98.
Drilling, which is expected to take around 45 days, will include a pilot hole and a 1,000-metre horizontal section. The stimulation program at SS1H is planned to begin during the fourth quarter of 2023.
Tamboran Resources managing director and CEO Joel Riddle said: “We have recommenced our FY24 drilling activities with the Shenandoah South 1H well in EP 117.
"This location has been identified by Tamboran as the most likely region to replicate the successful flow results delivered from the Tanumbirini 2H and 3H wells in the EP 161 acreage, where Tamboran has a 25% working interest.”
Part of Beetaloo JV
EP 117 is part of the Beetaloo Joint Venture between Tamboran (B2) Pty Limited and Falcon Oil and Gas Australia Ltd. The JV also includes EPs 76 and 98.
Tamboran (B2) is a 50/50 joint venture between Tamboran and Daly Waters Energy, LP, which is 100% owned by Sheffield Holdings, LP. Tamboran (B2) is the operator of EP 98/117 and Tamboran is acting as operator on behalf of the joint venture.
READ: Tamboran Resources mobilises H&P rig to Beetaloo Basin for drilling of Shenandoah South 1H well
Targeting ‘B Shale’
The SS1H well is positioned to target the Mid-Velkerri 'B Shale' about 700 metres or 30% deeper than the earlier drilled Amungee 2H (A2H) well in EP 98, around 60 kilometres to the north.
On completion of SS1H flow testing, Tamboran and Daly Waters Energy will complete the farm-in requirements to earn a 77.5% interest (38.75% each) and operatorship of the EP 76, 98 and 117 permits. Falcon Oil and Gas Australia will hold the remaining 22.5%.
A key indicator
Success at the SS1H well location could support the pilot development investment decision, which includes use of the Clean Energy Fuels Australia (CEFA) facilities and APA Group pipeline to the Amadeus Gas Pipeline (AGP).
Tamboran is targeting first domestic gas sales from the pilot development by the end of 2025.
“The SS1H well is key to progressing our proposed pilot development from the location adjacent to the AGP, where the joint venture is targeting first gas by the end of 2025,” Riddle said.
"This is expected to deliver much-needed gas volumes to the NT and East Coast gas markets at a time when AEMO and ACCC are forecasting a potential shortfall in gas supply.”
Progress at A2H
Meanwhile, at the A2H well fluid lab analysis is ongoing with remedial intervention work planned for later this year, subject to joint venture approvals.
The intervention is likely to coincide with activities at the Amungee well pad where the JV is planning to drill the Amungee 3H well following SS1H.