Tamboran Resources Corporation (TBNNY) SS-1H IP30 Flow Test Results

Tamboran Resources Corporation's (ASX:TBN) (OTCMKTS:TBNNY) SS-1H achieves commercial IP30 flow rate of 3.2 MMcf/d (normalized to 6.4 MMcf/d over 1,000 metres), exceeding pre-drill expectation.

Highlights

- The Shenandoah South 1H (SS-1H) well in EP 117 achieved an average 30-day initial production (IP30) flow rate of 3.2 million cubic feet per day (MMcf/d) over the 1,644-foot, 10 stage stimulated length within the Mid Velkerri B Shale, normalized to 6.4 MMcf/d over 3,281-feet (1,000 metres).

- Results from the SS-1H well exceeded our pre-drill expectation, which provides the Company with confidence to progress drilling activities during 2024, subject to funding and key stakeholder approvals.

- Exit rate trajectory showed a steady, low-declining curve at 2.9 MMcf/d over the stimulated length (normalized at 5.8 MMcf/d per 3,281 feet) with a flowing wellhead pressure of 575 psi.

- Geological rock properties at SS-1H compare favourably with those in the average Marcellus Shale dry gas window, including reservoir pressure, effective porosity and gas-in-place.

- The Company believes the SS-1H IP30 result elevates the Beetaloo West region as one of the most favorable places to anchor an initial development and commences the de-risking of more than 1 million acres below 8,850 feet (true vertical depth).

- Tamboran will progress development plans for the proposed 40 MMcf/d Pilot Project in the Shenandoah South location. The project is expected to require six upfront 10,000-foot development wells to achieve plateau production. Drilling is planned to commence in Q2 2024.

- At the end of January 2024, Tamboran held ~A$55 million in cash to support ongoing activities, which the Company expects to use to fund its 38.75% working interest in the proposed Pilot Project, subject to final Joint Venture approvals.

Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said:

"We are extremely excited to announce the results from the SS-1H well, which are the highest normalized rates achieved in the Beetaloo Basin to date. The normalized flow rates of 6.4 MMcf/d over a 1,000-metre (3,281-foot) lateral section demonstrate to us the commerciality of the Beetaloo Basin.

"The IP30 result gives us confidence to commence the construction phase of the proposed 40 MMcf/d Pilot Project at Shenandoah South under the Beneficial Use of Gas Legislation, which allows gas that would otherwise be flared to be sold into the local gas market. These volumes have potential to supply natural gas into the Northern Territory gas market in 1H 2026. Final Investment Decision is planned for mid-2024.

"Importantly, the rock properties, including reservoir pressure, effective porosity and gas-in-place, have delivered IP30 flow rates at Shenandoah South in the Beetaloo West area that compare favourably to production rates in some regions of the Marcellus Shale dry gas window.

"We will continue flow testing of the well over an initial 90-days to allow for an independent analysis of the expected 20-year EUR of the wells in the region. We then expect to commence drilling of the first two development wells for the proposed Pilot Project, which will be the first 10,000-foot wells drilled in the Beetaloo Basin."

Shenandoah South 1H flow results

The SS-1H well in Tamboran B2-operated Exploration Permit EP 117 achieved IP30 flow rates following the 10-stage stimulation program within the bottom 501 metres (1,644 ft) of the 1,020-metre (3,346 ft) lateral section in the Mid Velkerri B Shale.

Testing was carried out following the installation of production tubing and a three-week soaking period to allow for water used in the stimulation process to be absorbed by the shale. The soaking aims to increase the relative permeability to gas of the formation and enhance future production performance.

During the initial draw down period from 25 January to 8 February 2024 (~13.3 days), the choke was opened from 16/64" to 40/64" over staged intervals resulting in gas rates from 12.9 to 3.0 MMcf/d, with an average of 3.5 MMcf/d and 46.2 MMcf cumulative production over that period. Flowing wellhead pressures were drawn down from 4,611 psi to 792 psi.

During the subsequent continuous flowing period from 8 to 24 February 2024 (~16.7 days), the choke was opened to 43/64" at the beginning of the period, resulting in gas rates from 3.3 to 2.9 MMcf/d, with an average of 3.0 MMcf/d and 50.3 MMcf cumulative production over that period. Flowing wellhead pressures were drawn down from 792 to 578 psi.

The SS-1H well has demonstrated the geological rock properties, indicative of favorable well performance, compare relatively with those of the average (>10,000 wells) Marcellus Shale geological rock properties, including reservoir pressure, effective porosity and gas in place. Flow testing has demonstrated a pore pressure gradient of ~0.6 psi/ft, resulting in higher reservoir pressure at Shenandoah compared to all other Beetaloo Basin wells drilled to date.

The SS-1H IP30 flow rate delivered the highest normalized rates achieved in the Beetaloo Basin to date, exceeding the previous normalized IP30 record achieved by the Tanumbirini 3H well in the Santosoperated EP 161 acreage in 2022. The result continues to support that the deepest regions of the Beetaloo Basin have the most consistent geology and have the potential to deliver the highest flow rates and recoverable volumes (refer to Table 2*).

Ongoing development activity

The result from the SS-1H well gives Tamboran confidence to progress the proposed 40 MMcf/d Pilot Project (~15 MMcf/d net Tamboran) in the Shenandoah South region of the Beetaloo West. Tamboran is targeting first production from the project in H1 2026, which is expected to deliver volumes into the Northern Territory gas market over a 10-year plateau period, subject to completion of a binding Gas Sales Agreement, construction of necessary midstream infrastructure, funding and key stakeholder approvals.

The proposed Pilot Project is expected to include six upfront development wells drilled to 10,000 feet to achieve plateau production, the construction of the 40 MMcf/d Sturt Plateau Compression Facility (SPCF) and the 35-kilometre Sturt Plateau Pipeline (SPP) connecting the SPCF to the APA-owned Amadeus Gas Pipeline.

Tamboran has the funding to commence drilling the initial two wells in the proposed Pilot Project program and will evaluate opportunities to support funding the remaining capital commitments to reach first production, including issuance of equity and/or debt, evaluation of pre-payment for gas from the proposed Pilot Project and potential farm-down opportunities.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/26R3TK27

To view the Shenandoah South Flow Test Results Presentation, please visit:
https://www.abnnewswire.net/lnk/L85K1I02

Investor enquiries:
Chris Morbey
Vice President - Investor Relations
+61-2-8330-6626
Investors@tamboran.com

Media enquiries:
+61 2 8330 6626
Media@tamboran.com

News Provided by ABN Newswire