The Northern Territory Government has implemented all 135 recommendations under the 2018 scientific inquiry (Pepper Inquiry) into hydraulic fracturing in the Northern Territory, providing Tamboran Resources Ltd (ASX:TBN) with confidence to progress its investment in the Beetaloo Basin.
The Pepper Inquiry was a 15-month inquiry led by Honourable Justice Rachel Pepper of the NSW Land and Environment Court in 2018.
The inquiry was set up to mitigate the risks associated with any onshore shale gas development in the Northern Territory.
On 2 May 2023, the Northern Territory Chief Minister Natasha Fyles announced that all 135 recommendations had been met by the NT Government and cleared the way for an onshore shale gas industry in the Beetaloo Basin.
Development of the Beetaloo Basin is expected to deliver Territorians low reservoir carbon dioxide gas to provide affordable energy at a time where Australian families are experiencing cost of living pressures.
“Moving rapidly towards production as early as 2025”
Tamboran managing director and CEO Joel Riddle said: “Tamboran welcomes the Northern Territory Government’s announcement that the 135 Pepper Inquiry recommendations have been fully implemented.
“This gives industry the certainty to import and invest in the latest shale technology and equipment, including H&P FlexRig® rig.
“With the Northern Territory Government’s completion of the Pepper Inquiry, Tamboran is planning on moving rapidly towards production as early as 2025.”
Largest acreage holder in Beetaloo Basin
Tamboran is the largest acreage holder in the Beetaloo Basin with ~1.9 million net prospective acres, held through 100% owned properties and two joint ventures – one with Santos and the other with Falcon Oil & Gas and Daly Waters Energy LP (Sheffield).
Through these interests, the company holds net 2C contingent resources of ~1.5 trillion cubic feet (TCF).
Arrival of Helmerich & Payne’s FlexRig 3 rig
The Helmerich & Payne (H&P) super spec FlexRig 3 drilling rig has arrived in Australia, providing an important opportunity for the Beetaloo Basin in delivering a material reduction in drilling cost through increasing efficiencies and H&P’s operational excellence.
The rigs are expected to play a significant role in reducing the environmental footprint within the Beetaloo Basin with the ability to drill in excess of 3,000-metre horizontal sections within the Mid Velkerri “B Shale”, which allows for greater spacing between well pads.
Tamboran has contracted the H&P FlexRig for an initial two-year period with the possibility to import an additional four rigs into Australia from H&P’s available worldwide rig fleet when required.
“Incredible potential to reduce current energy costs”
Riddle added: “The arrival of Helmerich & Payne's (H&P) super spec FlexRig® Flex 3 rig in Australia marks a significant moment for the Northern Territory, Tamboran and our joint venture partners.
“The event is especially significant for everyday Australians who have been calling for a reduction in cost of living from lower energy prices for their homes and businesses.
“Through our Strategic Alliance with H&P and the possibility of importing an additional four rigs into Australia, the commercialisation of shale gas from the Beetaloo Basin has the incredible potential to reduce current energy costs with generally lower associated emissions than existing coal and higher reservoir carbon dioxide gas fields.
“The rig, which comes with modern US drilling technology, is expected to bring about a significant improvement in drilling efficiency and horsepower, delivering a step change in cost reduction while also reducing land use and minimising environmental impact.”