Tamboran Beetaloo Flow Test Shows Properties Similar to Marcellus

Australian shale gas wildcatter Tamboran Resources’ sidetrack in the Beetaloo Basin IP’ed an average of 7.2 MMcf/d over 30 days from a roughly 1-mile lateral, an IP rate similar to the average IP-30 of Marcellus dry-gas wells.

The Shenandoah South #2H ST1 is a sidetrack to a well Tamboran previously attempted. The well made the 7.2 MMcf/d from a 5,483-ft lateral and a 35-stage frac in Tamboran’s target, the Mid Velkerri B shale.

The rate-per-foot would be 13.2 MMcf/d if from a 10,000-ft lateral, Tamboran reported, “in line with the average of more than 11,000 wells in the Marcellus Shale dry-gas area with production for over a 12-month period.”

The 30-day average flow was while on choke that was opened from 10/64-inch to 40/64-inch at staged intervals. Flow declined from 10.4 MMcf/d to 6.6 MMcf/d, with a 7.2 MMcf/d average and cumulative production of 217.2 MMcf during the 30 days.

Flowing wellhead pressure was drawn down from 4,565 psi to 906 psi during the test period.

“At the end of the 30-day period, the well continues to experience steady flow performance, low decline rates and favorable wellhead pressures, which underscore the reliability and scalability of our operations,” Tamboran CEO Joel Riddle told investors in an announcement.

Filling in a supply gap

Mark Lear, a securities analyst with Piper Sandler, reported after the news that he was maintaining an "overweight" rating on Tamboran shares and a $41 target, which began trading a year ago on the New York Stock Exchange in a U.S. IPO.

Shares were trading at press time at $22.70.

“The reported flow rate on the SS #2H well provides increased confidence in the company's resource potential, as well as progress toward commercial development with access to an under-supplied domestic market,” Lear reported, “and eventually premium international markets.”

While Australia is a large gas exporter, the growth in indigenous gas production obligated to LNG export contracts has resulted in a shortage of gas for local use. Tamboran’s development is expected to satiate local demand and, eventually, excess output may be exported.

Lear wrote, “Ultimately, we think Tamboran is in position to translate nearly two decades of shale development and technological advancement in the U.S. to a potential resource that has similar properties as the Marcellus shale.”

Tamboran’s Beetaloo development is led in part by Haynesville and Eagle Ford shale wildcatter Dick Stoneburner and Permian Basin wildcatter Bryan Sheffield, founder of Parsley Energy.

The E&P is drilling the Beetaloo with a Helmerich & Payne (H&P) rig and Liberty Energy frac spread. Both H&P and Liberty have taken equity interest in Tamboran.

Lear wrote, “We foresee a handful of catalysts ahead, including the IP-90 rate from the SS #2H well, as well as a potential deal on the Phase 2 farmout which is expected to deliver upward of 1 Bcf/d to Australia's east coast by fiscal year 2028.”

Tamboran is planning three 10,000-ft wells from the pad in the second half of this year.

Those wells, the newest one and the horizontal discovery well on the pad will be put into pipe to Northern Territory customers.

Riddle said, “The Shenandoah South #2H sidetrack well has delivered a record average IP-30 flow result of 7.2 MMcf/d from the Beetaloo Basin to date.

“Results show a material step up in flow rate from a horizontal section stimulated approximately three times longer than the SS-1H well.

“Tamboran continues to bring key lessons from the U.S. to accelerate the commercial development of the Beetaloo Basin. We have already delivered an impressive improvement in drilling efficiency and stimulation intensity in the first two wells of the Shenandoah South area.”

The shale was deposited during the Pre-Cambrian while the Marcellus’ deposition was more recently, during the Devonian.