Tamboran Resources Corporation (OTC:TBNRF, ASX:TBN)’s Shenandoah South 1H (SS-1H) well has recorded a strong initial 90-day production rate, pointing to a promising future for the Beetaloo Basin's gas extraction potential.
This flow rate at SS-1H represents a 65% increase compared to the previously highest-recorded flow rate in the Beetaloo Basin by the Santos-operated EP 161 Tanumbirini 3H well.
Strong flow rate
The well, on exploration permit 117, has achieved an average IP90 flow rate of 2.9 million cubic feet per day (MMcf/d), over a stimulated length of 1,644 feet, across ten stages within the Mid Velkerri B Shale.
This rate is normalised to 5.8 MMcf/d over a span of 1,000 metres (some 3,281 feet).
Tamboran managing director and CEO Joel Riddle said: “The results of the SS-1H flow test have continued to exceed our pre-drill expectations, with flow rates and pressure declines in line with some of the most prolific regions of the Marcellus Shale in the US.
“The results have validated the company’s view that the deepest regions of the Beetaloo Basin are the most productive and are expected to deliver premium economics and returns when compared to shallower areas within the region.”
The results from SS-1H suggest that future development wells with lateral lengths extending to 10,000 feet could potentially yield average flow rates of 17.8 MMcf/d over their first 90 days of production.
Flow testing at SS-1H has confirmed productivity and decline profiles that align closely with those observed in the most prolific regions of the Marcellus Shale in the United States, underscoring the Beetaloo West region as the preferred area for development operations within the basin.
Following these successful tests, the well will be shut in and suspended, earmarked as a potential future production well.
Tamboran is actively progressing with front end engineering and design (FEED) studies for the upcoming Shenandoah South Pilot Project.
A final investment decision (FID) is anticipated by mid-2024, contingent on securing necessary funding and obtaining key stakeholder approvals.
Gas into the 2040s
“The one million acres of deep shale in the Beetaloo West have potential to deliver Tamboran’s gross Beetaloo Basin production ambition of 2 Bcf/d (around 775 MMcf/d net to Tamboran – equivalent to more than 13.0 million tonnes per annum of LNG export capacity) for 40 years from a single landing zone,” Riddle continued.
“Management will commence an evaluation of the results and integrate these into our development planning, including the assessment of the 2024-25 six-well drilling campaign that will support the proposed 40 MMcf/d (gross volume) pilot project in the Shenandoah South region in the Beetaloo West.
“The gas sales from the proposed pilot project have been contracted to the Northern Territory Government under a binding take-or-pay gas sales agreement to support the local Northern Territory gas market over approximately 15 years.
“It is our commitment to produce first volumes from the Beetaloo Basin to Territorians and secure energy supply into the 2040s.”