Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has spudded the Amungee NW 3H (A3H) well, the second well to be drilled in the Beetaloo Basin of the Northern Territory using the Helmerich & Payne, Inc. (NYSE:HP) (H&P), superspec FlexRig® Flex 3 Rig.
The A3H well is being drilled from the same well pad as the Amungee 2H (A2H) well, which was drilled in the second half of 2022 and intersected the Mid Velkerri B Shale at 2,413 metres total vertical depth (TVD).
25-day schedule
Drilling activity at A3H in Tamboran’s 38.75%-owned exploration permit EP 98 is expected to take around 25 days, including a 1,000-metre horizontal section.
The drilling and cementing portion of the A3H well is expected to cost A$14.4 million with Tamboran’s net share being approximately A$5.6 million.
All joint venture parties are participating at their full working interest.
Increased efficiencies expected
Tamboran Resources managing director and CEO Joel Riddle said: “The A3H well is the second well to be drilled in the Beetaloo Basin with the new H&P rig.
"Learnings from the A2H and SS1H are expected to deliver increased drilling efficiencies, leading to an anticipated reduction in future drilling costs."
A stimulation program is planned for the second quarter of 2024, following the end of the Northern Territory wet season.
The company will incorporate learnings from the recently drilled A2H and Shenandoah South 1H (SS1H) wells into the drilling and stimulation programs.
“Pathway to material increase”
“Results from the A3H well are planned to support Tamboran’s resource maturation where a Netherland, Sewell and Associated, Inc. (NSAI) maturation study has demonstrated a pathway to a material increase in 2C contingent gas resources between the Amungee and Shenandoah South area, subject to demonstration of commercial flow rates from the Amungee and Shenandoah South locations,” Riddle said.
"A further well midway between the two well pads is required and planned for 2024/2025, subject to joint venture approval.
“We look forward to providing an update to our operations at the A3H and SS1H wells, including the upcoming stimulation program at SS1H, throughout the remainder of the year.”
Shares higher
The Beetaloo Joint Venture covers EP 98 with Tamboran (B2) Pty Limited holding a 77.5% interest and Falcon Oil and Gas Australia Limited holding 22.5%. Tamboran (B2) is a 50:50 JV between Tamboran and Daly Waters Energy, LP, which is owned by Sheffield Holdings LP.
Tamboran shares have been as much as 20% higher in ASX trading this afternoon to A$0.15.