With proceeds from a recent U.S. IPO, wildcatters’ Tamboran Resources has spud its first Australian shale-gas development well in the Beetaloo Basin’s Marcellus-lookalike Middle Velkerri B shale.
U.S.-based rig operator Helmerich & Payne (H&P) began drilling the Shenandoah South #2H on a two-well pad, Tamboran reported Aug. 29. After, the rig, an H&P super-spec FlexRig 3, will drill the #3H alongside it.
Each well is estimated to take 30 days to reach the toe of their 2-mile laterals—the longest laterals to date in the basin—at 9,910 feet in vertical depth, Tamboran reported.
The pad is 3 miles north of Tamboran’s Shenandoah South #1H appraisal well that was made to complete delineation of the basin’s core prior to the June IPO on the NYSE.
H&P is an investor in Tamboran along with U.S. pressure-pumper Liberty Energy, which has a frac fleet en route to Australia, Tamboran reported, to complete the #2H and #3H as well as subsequent Tamboran wells in the play.
Plans are to complete each of the 2-mile laterals with up to 60 stages.
Tamboran had been using locally available rig and completion services in its test wells, prior to enlisting H&P and Liberty.
“The increased efficiency and performance of the Liberty frac fleet is expected to result in a material increase in the number of completed stages per day and optimized gas flows,” Tamboran reported.
It added, “The two-well program will be the largest single campaign in the Beetaloo Basin to date.”
Tamboran holds 1.9 million net prospective acres in the Beetaloo, which is a sub-basin of the Greater McArthur Basin in Australia’s Northern Territory.
Joel Riddle, CEO, said, “With the new Liberty stimulation equipment … we are eager to demonstrate the deliverability of the Mid Velkerri B shale over the longer-lateral sections with modern U.S. completions equipment.
“The Liberty frac fleet is capable of materially increasing the stimulation intensity and completing more stages per day compared to the legacy stimulation fleets in Australia.”
Tamboran holds 95% interest in the 51,200-acre drilling spacing unit (DSU) in a 50/50 joint venture with Permian Basin shale wildcatter Bryan Sheffield’s Daly Waters Energy, that is 100% owned by the Formentera Australia Fund managed by Sheffield-led Formentera Partners.
Results from the two wells are expected in the first quarter, Tamboran reported.
Although Australia exports gas from LNG plants on its northern coast, it is gas-short domestically.
In June, the Northern Territory government awarded “major project” status to Tamboran’s Beetaloo development, expediting processes for drilling and bringing wells online, including “a dedicated project case manager” inside the government “to assist with coordinated and streamlined communications.”
In a deal, Tamboran’s gas supply is expected to satiate domestic gas demand first; excess gas will be exported via an LNG plant at Darwin.