Tamboran Resources Ltd (ASX:TBN) has completed its 25-stage stimulation program at Amungee 2H well in the 38.75% owned and operated EP 98 permit of the Beetaloo Basin in the Northern Territory of Australia.
This is the first well to be finished using the optimal 5-½-inch casing within the Mid-Velkerri ‘B Shale’ and the total expenditure for the A2H well to date is around $32 million, including drilling and stimulation.
This is within 5% of budget estimate after additional scope to the well was undertaken by Tamboran post-acquisition.
The company now expects to announce 30-day initial production (IP30) flow rates during the second quarter of 2023.
"Worked together seamlessly"
“I am extremely proud of our team being able to deliver a project of this magnitude, despite taking on operatorship of the well days before spudding and bringing forward the stimulation program by more than three months,” Tamboran’s COO Faron Thibodeaux said.
“Our team and contractors worked together seamlessly, including the technical team in the US and new employees following the acquisition, to complete this milestone.”
About the stimulation program
Tamboran’s program was a 25-stage program across a 1,020-metre horizontal section within the Mid-Velkerri ‘B Shale’.
Approximately 2,125 pounds per foot of proppant was placed along the completed horizontal section, an increase of around 55% compared to the Tanumbirini 2H (T2H) and 3H (T3H) wells in the Santos-operated EP 161 permit (Tamboran 25%, non-operator).
Proppant was placed using 5-½-inch casing and based on modern US shale design, which leverages the experience of Tamboran’s US technical team and incorporates learnings from the drilling and stimulation of the T2H and T3H wells.
The modern design is expected to result in improved flow rates from the extended production test during 2023.
Significant milestone
Tamboran Resources managing director and CEO Joel Riddle said: “The completion of the program at A2H is a significant milestone for Tamboran in the Beetaloo Basin, being the first well to be completed using the optimal 5-½-inch casing within the Mid-Velkerri ‘B Shale’.
“I commend the Tamboran team and our contractors for the safe and successful completion of the program, which was achieved in the middle of the Northern Territory’s wet season.
“The team delivered a significant increase in sand into the shale formation, when compared to the T2H and T3H wells in the non-operated EP 161 permit. We expect this will further demonstrate economic flow rates and commercial viability of the play.
“The A2H well will shortly begin to flow back stimulation fluid before being shut-in for installation of production tubing. This is expected to deliver optimal flow rates during the extended production testing, which will provide key data regarding decline curves and estimated ultimate recovery.”
Tamboran’s assets
Tamboran is the largest acreage holder and operator with ~1.9 million net prospective net acres in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia.
The company is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing the significant low CO2 gas resource within the basin.
Its key assets include a 25% non-operated working interest in EP 161, a 100% working interest and operatorship in EP 136, EP 143 and EP(A) 197 and a 38.75% working interest and operatorship in EPs 98, 117 and 76 which are all located in the Beetaloo Basin.
Tamboran is focused on the development of the proposed EP 98 Pilot Development, targeting first production by the end of 2025.