Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has taken another step toward feeding the energy-hungry East Coast market of Australia from the Beetaloo Sub-Basin in the Northern Territory with Shenandoah South 1H (SS1H) well intersecting 90-metres of high-quality Mid Velkerri B Shale with strong dry gas shows.
This represents the thickest section of Mid Velkerri B Shale seen in the Beetaloo Sub-basin depocenter to date.
Drilling record
What’s more, the new Helmerich & Payne (H&P) super spec FlexRig® Flex 3 rig used at SS1H reached TD of the pilot hole in 21.5 days, drilling at 153 metres per day, a new record for wells drilled below 3,000 metres in the Beetaloo Sub-Basin.
Tamboran Resources managing director and CEO Joel Riddle said: “I am extremely excited by the immediate improvement in drilling efficiency of the H&P rig and initial results from the logging of SS1H.
"Initial data supports our view that the deeper areas in the Beetaloo Basin contain some of the thickest and highest quality B Shale intersected to date in the Beetaloo Basin. The 90 metres of Mid Velkerri B Shale is approximately 20% thicker than the Tanumbirini area.”
Higher porosity and gas saturation
Providing further encouragement for Tamboran is that logging of the Mid-Velkerri B Shale formation indicates higher porosity and gas saturation relative to offset wells, consistent with the Marcellus Shale in the US.
Initial evaluation by Tamboran confirms reservoir continuity of the Mid Velkerri B Shale over 150 kilometres between the Amungee 2H and Beetaloo W1 wells. This includes a target development area of around 1 million acres where the shale depth exceeds 2,700 metres.
Log data from the Shenandoah South 1H well with comparison to offset wells within the Beetaloo Basin.
Comparison to Marcellus Shale
“Preliminary observations suggest the rock properties continue to compare favourably to that of the Marcellus Shale in the US. The Marcellus is globally recognised as the most prolific shale basin in the world, with production exceeding 25 BCFD during 2022,” Riddle said.
“The Marcellus helped the northeastern United States achieve material greenhouse gas emission reductions as gas-fired power replaced coal-fired power across the region.
"We hope Australia can follow a similar pathway to decarbonisation, while supplying Australian families and industries with an affordable and secure energy resource.”
Horizontal section
Tamboran will now begin drilling of a 1,000-metre horizontal section within the shale formation ahead of a stimulation program of up to 10 stages over a 500-metre section, which is planned for the December quarter of 2023.