Tamboran Resources Ltd (ASX:TBN) is targeting to become a net-zero gas producer when it starts production by the year-end of 2025 by integrating renewables and carbon offsets.
The natural gas company is focused on accelerating the commercialisation of the Beetaloo Basin, within the Greater McArthur Basin in the Northern Territory – a world-class shale basin similar in scale and with the high-quality reservoir properties as the Marcellus Shale in Pennsylvania, US.
It intends to play a role in the global energy transition by responsibly investing in the development of clean, low carbon dioxide, unconventional natural gas resources in the Beetaloo Sub-basin.
Tamboran plans to de-risk substantial prospective resources that can supply affordable gas to meet predicted gas shortfalls in Australia.
It also has multiple commercialisation pathways to market, including an infrastructure plan to deliver gas to the Australian markets.
Six sustainability pillars
The company is targeting the development of clean, low carbon dioxide gas from the Beetaloo Sub-basin through its six sustainability pillars:
➢ Health and Safety: Putting health and safety first;
➢ Climate Change: Playing a role in the transition to a lower-carbon economy;
➢ Environment: Applying leading North American drilling technologies to promote efficiency and minimise environmental impacts;
➢ People: Attracting, developing and retaining a diverse, inclusive and competent workforce;
➢ Community: Partnering with its local and host communities to share value; and
➢ Economic Sustainability: Generating economic growth and value for its investors, employees, customers and communities.
“Core Beetaloo” focus
Tamboran’s key assets - EP 161 and EP 136 - are located in the 'Core Beetaloo' area.
It has low carbon gas characteristics, with the reservoir gas containing very low carbon dioxide (around 3%) and has no major impurities.
It holds a 25% working interest in the EP 161 exploration permit and is the sole owner of the EP 136, EP 143 and EP(A) 197 tenements, which also sit within the Beetaloo Sub-basin.
It is committed to a three-well drill campaign to de-risk the resource and accelerate development.
The current and upcoming drilling by partners Santos QNT Pty Ltd and Tamboran is primarily focused on 'Core Beetaloo', which is positioning to deliver first commercial pilot development by year-end 2025.
It has 31 trillion cubic feet (TCF) total net resources in Beetaloo Sub-basin depocenter position.
Here the mid-Velkerri B shale is thickest with very limited faulting and superior reservoir qualities.
The EP 161, its 25% net interest, Santos-operated asset, has 12 TCF net resources and the Tanumbirini #1 vertical flow test showed strong performance with 10 mmcf/d peak flow rate, 1.5 mmcf/d average rate from the first nine days of testing.
Two horizontal wells (Tanumbirini #2H/3H) are underway with the delivery of flow test results targeted by year-end 2021.
The 100%-owned and Tamboran-operated EP136 has 19 TCF net resources.
The acreage is on-trend with Santos’ EP 161 and Origin Energy Ltd (ASX:ORG)’s EP 76 drilling activity in 2021.
The Maverick #1 horizontal well is planned within 12 months.
Jemena and Tamboran commercial deal
In 2020, Tamboran and Jemena agreed on a detailed commercial framework to form a joint venture (JV) to build, own, and operate long term midstream gas infrastructure.
The industry-leading development costs and JV partnership with Jemena will enable Tamboran to be one of the lowest-cost gas producers to the domestic market.
➢ Local Northern Territory Market 2023-24 — Targeting 15 PJ/y to local NT gas market;
➢ Australian Domestic Market 2025 — Joint Venture with Jemena targeting first Beetaloo pilot development (40 PJ/y) to domestic markets by end 2025; and
➢ LNG Backfill (Darwin or Gladstone) 2028+ — EP 161 or EP 136 full field development (+200 PJ/y) targeting potential LNG backfill markets in Darwin or Gladstone in 2028+.
Operating team with US shale expertise
The company is focused on an accelerated reduction of costs by applying US shale expertise and the latest 7-gen drilling technology.
In August 2021, the company appointed exploration and production executive Faron Thibodeaux as chief operating officer, who will be supported by five experienced technical and operational professionals who recently joined Tamboran from Pioneer Natural Resources (NYSE:PXD) Co, the largest producer in the Permian Basin in the US.
These professionals served Pioneer for a combined 40 years, where they applied industry best practices and leading-edge technology in unconventional shale development in what is today considered the premier basin in the United States.
Collectively, the Tamboran executive and operational team has more than 200 years of direct experience in the energy industry and has a strong track record of safely drilling.
Tamboran COO Faron Thibodeaux said: “This is one of those rare situations in our careers where our knowledge from decades of experience in the unconventional sector in the US can have an immediate impact on the Beetaloo Subbasin and the overall Australian energy market.
“Our ability to execute begins with the superior geology that exists in the Core Beetaloo and the application of next-generation proven technology and know-how to getting this low-emission energy into the market.”