Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle, said:
“The arrival of Helmerich & Payne’s (H&P) super spec FlexRig® Flex 3 rig in Australia marks a significant moment for the Northern Territory, Tamboran and our joint venture partners.
“The event is especially significant for everyday Australians who have been calling for a reduction in cost of living from lower energy prices for their homes and businesses. Through our Strategic Alliance with H&P and the possibility of importing an additional four rigs into Australia, the commercialisation of shale gas from the Beetaloo Basin has the incredible potential to reduce current energy costs with generally lower associated emissions than existing coal and higher reservoir carbon dioxide gas fields.
“The rig, which comes with modern US drilling technology, is expected to bring about a significant improvement in drilling efficiency and horsepower, delivering a step change in cost reduction while also reducing land use and minimising environmental impact.
“Tamboran welcomes the Northern Territory Government’s announcement regarding the implementation of all 135 Pepper Inquiry recommendations. This gives industry the certainty to import and invest in the latest shale technology and equipment, including the H&P FlexRig® rig. With the Northern Territory Government’s completion of the Pepper Inquiry, Tamboran is planning on moving rapidly towards production as early as 2025.
“Once operational, this onshore drilling rig will be the most powerful rig in Australia, capable of drilling more than 3,000-metre horizontal sections within the Mid Velkerri ‘B Shale’ in the higher quality, deeper shale formations of the Beetaloo. With Beetaloo gas containing approximately 3 – 4 per cent reservoir carbon dioxide, we expect the reduction in Scope 1 and 2 emissions will be more cost efficient when compared to offshore gas fields that can hold up to 20 per cent associated carbon dioxide.
“The development of the Beetaloo Basin, one of the world’s largest undeveloped shale gas plays, has the potential to transform the Northern Territory. It is anticipated that thousands of direct and indirect jobs will be created locally, and hundreds of millions of dollars in royalties will be paid to Traditional Owners and the Northern Territory Government.
“By working closely with the government, the industry can ensure Australia’s energy security for decades to come and contribute to the country’s climate commitments by utilising this low reservoir carbon dioxide gas resource to offset high emission alternatives. Additionally, this resource has the potential to significantly reduce the supply/demand gap in the East Coast gas market.
“We have already initiated discussions with various high-quality gas buyers for volumes of gas for 200-300 TJ per day from later this decade. Contracting this gas will be critical in enabling us to approve our 1 billion cubic feet per day (BCFD) development plan.”
John Lindsay, H&P’s President and CEO commented:
“The arrival of our rig into the Northern Territory is another step forward for Tamboran and their journey to provide natural gas into Australia’s domestic market. Tamboran’s objectives align with our core purpose of ‘improving lives through efficient and responsible energy’ and we are pleased to have this opportunity to provide the Company the rig, technology and drilling expertise in order for them to achieve their goals. We are looking forward to mobilizing the rig to the Beetaloo Basin and commencing operations.”
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About Tamboran Resources Limited
Tamboran Resources Limited is the largest acreage holder and operator with ~1.9 million net prospective net acres in the Beetaloo Sub-basin of Australia’s Northern Territory. The Company is focused on playing a constructive role in the global energy transition towards a lower carbon future by developing the low reservoir CO2 gas resource within the basin. Tamboran’s key assets include a 38.75% working interest and operatorship in EPs 98, 117 and 76, a 100% working interest and operatorship in EP 136, EP 143 and EP(A) 197 and a 25% non-operated working interest in EP 161, which are all located in the Beetaloo Basin. Tamboran will focus on the development of the proposed EP 98 Pilot Development, targeting first production by the end of calendar year 2025.
About Helmerich & Payne Inc. (H&P)
Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for our customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies.
For more information, visit www.helmerichpayne.com.
Figure 1: Unloading of H&P Rig in Darwin