Tamboran Resources Corporation (OTC:TBNRF, ASX:TBN) has increased its working interest in the proposed Shenandoah South Pilot Project in the Beetaloo sub-basin of Australia's Northern Territory to a minimum of 47.5%.
This follows a decision by Falcon Oil & Gas Australia Limited to limit its participation to 5% in the Beetaloo Joint Ventures’ second Shenandoah South well pad (SS2) and the two wells in the 2024 drilling program.
The two 2024 wells will create two Drilling Spacing Units (DSUs) totalling 51,200 gross acres around the new SS2 well pad, where Tamboran and Daly Waters Energy, LP (DWE) as 50/50% owners of Tamboran (B2) Pty Limited have agreed to pick up the non-consent, increasing interest to 95%.
An opportunity for shareholders
“The increased working interest to a minimum of 47.5% over 51,200 gross acres in the core of the Beetaloo West acreage is a significant opportunity for Tamboran’s shareholders,” Tamboran Resources managing director and CEO Joel Riddle said.
“This area has the potential to accommodate up to 23 well pads (~138 wells) around the new SS2 well pad, including the development wells required to supply gas for the proposed 40 million cubic feet per day (MMcf/d) Pilot Project into the Northern Territory gas market.
“We plan to announce the Final Investment Decision on the proposed pilot project in mid-2024, subject to funding and standard stakeholder and joint venture approvals.”
Tamboran and DWE will carry Falcon for up to $3.75 million for the first well at Shenandoah South after June 30, 2024.
TBN says the tenure has potential to accommodate up to 23 well pads (138 wells based on six wells per pad, 3,000-metre lateral sections and 500-metre well spacings) and expects the project will support the wells required to deliver gas to the proposed Shenandoah South Pilot Project.