Workflow
Tamboran Resources Corporation(TBN) - 2024 Q4 - Annual Results
TBNTamboran Resources Corporation(TBN)2024-09-20 20:27

Gas Sales Agreements and Partnerships - Tamboran Resources Corporation signed a 15.5-year Binding Gas Sales Agreement to deliver 40 MMcf/d to the Northern Territory Government via the existing Amadeus Gas Pipeline[11] - The company has signed letters of intent with six East Coast gas buyers for up to 875 MMcf/d, which is over 50% of the current East Coast gas demand[4] - The company entered into strategic partnerships to import US technology and build additional pipelines into the Beetaloo Basin, including a two-year rig contract with Helmerich & Payne[8] Production Goals and Drilling Programs - Tamboran aims to grow Beetaloo Basin gas production to 2 Bcf/d (gross) by 2030 to supply the Northern Territory, East Coast, and Asia Pacific markets[7] - The average gross well cost for the 2024 drilling program is targeted at approximately US28millionfortwowells,withIP30flowratesexpectedinQ12025[12]−TheproposedShenandoahSouthPilotProjecttargetsfirstgasfroma 40MMcf/d(gross)pilotprojectin1H2026,withdrillingoftwohorizontalwellscommencingin2024[10]−Upcomingmilestonesincludecompletingdrillingandstimulationactivitiesby4Q2024andsecuringfinalstakeholderapprovalsbyYE2024[22]ReservoirandWellPerformance−TheShenandoahSouth1Hwellloggedapproximately480ftofhigh−qualitygasintervalataround10,000−footdepth,indicatingfavorablereservoirproperties[9]−ShenandoahSouth1HIP90performanceshowsfavorablecomparisontoaverageMarcellusShalewellperformance,withanaverageflowrateof24MMCF/Dper10,000[17]−TheLibertyEnergyfracfleet,with80,000HP,hasbeenimportedtooptimizestimulationoftheMidVelkerriBShale,enhancingcostefficiencyandwellperformance[15]MarketAnalysisandFutureProjections−TheEastCoastgasmarketisprojectedtofacepotentialshortfallsexceeding1Bcf/dby2030,withpricesforlocalcontractsin2024estimatedatA28 million for two wells, with IP30 flow rates expected in Q1 2025[12] - The proposed Shenandoah South Pilot Project targets first gas from a ~40 MMcf/d (gross) pilot project in 1H 2026, with drilling of two horizontal wells commencing in 2024[10] - Upcoming milestones include completing drilling and stimulation activities by 4Q 2024 and securing final stakeholder approvals by YE 2024[22] Reservoir and Well Performance - The Shenandoah South 1H well logged approximately 480 ft of high-quality gas interval at around 10,000-foot depth, indicating favorable reservoir properties[9] - Shenandoah South 1H IP90 performance shows favorable comparison to average Marcellus Shale well performance, with an average flow rate of 24 MMCF/D per 10,000[17] - The Liberty Energy frac fleet, with 80,000 HP, has been imported to optimize stimulation of the Mid Velkerri B Shale, enhancing cost efficiency and well performance[15] Market Analysis and Future Projections - The East Coast gas market is projected to face potential shortfalls exceeding 1 Bcf/d by 2030, with prices for local contracts in 2024 estimated at A12.60 per GJ (~US8.45permcf)[6]−Phase2ofTamboran′sstrategyincludesoversizednewpipelinestoprovide875MMcf/dtotheEastCoastGasMarket,addressingprojectedshortfalls[20]−TheMarcellusShaleinNEPennsylvaniaproducesapproximately14Bcf/dfromaround1millionacres,indicatingsignificantproductionpotentialinsimilarregions[19]ProjectDevelopmentandEnvironmentalApprovals−TheproposedNTLNGprojectatDarwinhassecureda420−acresiteandistargetingcompletionofpre−FEEDstudiesby1H2025,withgovernmentsupportofapproximatelyUS8.45 per mcf)[6] - Phase 2 of Tamboran's strategy includes oversized new pipelines to provide 875 MMcf/d to the East Coast Gas Market, addressing projected shortfalls[20] - The Marcellus Shale in NE Pennsylvania produces approximately 14 Bcf/d from around 1 million acres, indicating significant production potential in similar regions[19] Project Development and Environmental Approvals - The proposed NTLNG project at Darwin has secured a 420-acre site and is targeting completion of pre-FEED studies by 1H 2025, with government support of approximately US1.0 billion[21] - The environmental approval process for the NTLNG project is currently underway, expected to be completed by YE 2025[21] - Tamboran's proposed NTLNG project targets an export capacity of approximately 6.6 MTPA[20] - Tamboran holds a net working interest of approximately 387,600 acres in the deep Mid-Velkerri gas play, targeting future development potential[18] - The company is focusing on the development of the Mid Velkerri 'Lower B' shale target, which presents future upside potential[19]