Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has taken a further step toward its goal of delivering much-needed gas to the Northern Territory and East Coast markets, advising Falcon Oil and Gas Ltd that it has reached the associated cost carry commitment, the final piece required to satisfy the 2014 Falcon farm-in agreement.
As per the Beetaloo Joint Venture (BJV), Tamboran and Daly Waters Energy LP will hold a 77.5% (38.75% each) interest and operatorship of the EP 76, 98 and 117 permits in the Beetaloo Sub-basin, with Falcon to hold 22.5%.
All parties have committed to fully fund their full working interest of future cash calls at the Shenandoah South 1H well (SS1H) in EP 117, which commenced drilling on August 1, 2023.
Tamboran is required to fund ongoing activity at 38.75% working interest together with its net share (A$3.4 million) of Falcon’s remaining carry on future activities. Falcon remains carried for a net A$6.8 million consideration for future drilling activities, following an October 2022 agreement to waive its pre-emptive rights.
The SS1H well is key to progressing the company’s proposed pilot development from permits adjacent to the Amadeus Gas Pipeline, where the joint venture is targeting first gas by the end of 2025.
A major milestone achieved
Tamboran managing director and CEO Joel Riddle said: “Meeting the Falcon farm-in agreement cost cap is a major milestone for the Beetaloo Joint Venture (BJV). The five vertical wells and three horizontal wells drilled, as part of the carry commitment, since 2014 have delivered key information of the continuous nature and productivity of the Mid Velkerri across the Beetaloo Basin.
“These activities helped demonstrate the potential commerciality of the Beetaloo with the Amungee NW H1 well achieving flow rates exceeding 5 million standard cubic feet per day over a normalised 1,000 metre section in 2021.”
“We look forward to working closely with the BJV to accelerate the development of our low reservoir CO2 gas resources within the Beetaloo Sub-basin. Gas from the Beetaloo is well positioned to play a part in alleviating the anticipated East Coast gas shortfall, which is currently forecast by the Australian Competition and Consumer Commission (ACCC) and Australian Energy Market Operator (AEMO).”