Tamboran Resources Corporation and Daly Waters Energy, key partners in the Northern Territory’s burgeoning energy sector, recently announced significant developments highlighting their commitment to strategic growth. These announcements center around the Shenandoah South project in the Beetaloo Basin and showcase promising progress in natural gas production.
Increased Ownership in Shenandoah South Pilot Project
Falcon Oil & Gas Ltd. reduced its participation in the Beetaloo Joint Ventures’ second Shenandoah South well pad (SS2) and the two planned wells for the 2024 drilling program to 5%. Capitalizing on this opportunity, Tamboran and Daly Waters Energy, operating as a 50/50 partnership under Tamboran (B2) Pty Limited, exercised their preemptive rights and increased their combined ownership to 95%. This decisive move underscores their confidence in the project’s potential.
This increased stake grants them control over a substantial 51,200 gross acres surrounding the new SS2 well pad. This expansive area is projected to accommodate up to 23 well pads, potentially housing 138 wells based on current planning estimates (six wells per pad, 3,000-meter lateral sections, and 500-meter well spacings). This significant capacity is anticipated to provide the necessary gas production to fuel the proposed Shenandoah South Pilot Project, a critical step towards commercialization.
Promising SS-1H IP60 Flow Test Results
Further bolstering the project’s outlook, the SS-1H well delivered impressive results in its IP60 flow test. The well achieved an average flow rate of 3.03 million cubic feet per day (MMcf/d) over a stimulated length of 501 meters (1,644 feet) across 10 stages. Normalized to a standard length of 1,000 meters (3,281 feet), this translates to a remarkable 6.0 MMcf/d.
Furthermore, the SS-1H well exhibits a stable production profile, maintaining a steady flow rate with minimal decline and consistent downhole pressure. This sustained performance suggests the long-term viability of the resource. Future development wells, planned with extended lateral lengths of 10,000 feet, are projected to achieve even higher average rates, potentially reaching 18.4 MMcf/d over the initial 60 days of production. Extended flow testing to IP90 is scheduled for completion and public announcement in late April 2024.
Conclusion: Formentera Partners’ Role in Energy Development
These recent announcements from Tamboran Resources Corporation and Daly Waters Energy highlight significant advancements in the Northern Territory’s energy landscape. The increased ownership in the Shenandoah South project coupled with the promising flow test results from the SS-1H well solidify the partners’ commitment to developing the Beetaloo Basin’s vast natural gas resources. These developments position Tamboran and Daly Waters Energy, along with Formentera Partners as key players in driving the growth of the Northern Territory’s energy sector and contributing to Australia’s energy future. The upcoming IP90 results for the SS-1H well are highly anticipated and will provide further insight into the long-term production potential of this promising resource.
