Tamboran Resources Expands Stimulation Testing at Beetaloo Basin Wells (ASX:TBN)

Highlights: 

• Tamboran Resources begins stimulation testing of two wells in the Beetaloo Basin, marking a significant step in its exploration efforts. 
• The stimulation program will use up to 119 stages across two wells, increasing proppant intensity by over 25%. 
• The program aims to contribute reliable energy to the Northern Territory, feeding into the proposed Shenandoah South Pilot Project. 

Tamboran Resources Begins Stimulation Testing at Beetaloo Basin Wells (ASX:TBN) 

Tamboran Resources Corporation (ASX:TBN) has initiated its long-awaited stimulation testing program on two key wells in the Beetaloo Basin, located within the Greater McArthur Basin in Northern Territory, Australia. The company has begun the process of stimulating the Shenandoah South 2H sidetrack (SS-2H ST1) and the Shenandoah South 3H (SS-3H) wells, both of which are situated in exploration permit EP 98. 

The stimulation process, a critical phase in the development of unconventional gas resources, will involve the pumping of up to 119 individual stimulation stages across both wells. This marks a significant step in the company’s efforts to unlock the full potential of the Beetaloo Basin, one of the most promising gas plays in Australia. The SS-2H ST1 well will undergo 43 stimulation stages along a horizontal section measuring 5,427 feet (1,654 meters), while the SS-3H well will see 76 stages over a 9,766-foot (2,977-meter) horizontal section. With the use of advanced techniques, the company intends to optimize the effectiveness of each stimulation stage, reducing the spacing between stages to enhance the overall productivity of the wells. 

Joel Riddle, the managing director and CEO of Tamboran Resources, highlighted the scale and importance of this project. He emphasized that this stimulation campaign is planned to be the largest conducted in the Beetaloo Basin to date. With the total lateral length across both wells reaching approximately 15,193 feet (4,631 meters), the average distance between each stimulated stage will be around 127 feet. This large-scale campaign is expected to significantly boost the production capabilities of the wells, providing reliable energy to the Northern Territory and contributing to the region’s energy security. 

These wells are anticipated to feed into the proposed 40 MMcf/d Shenandoah South Pilot Project, a key part of Tamboran’s strategy to develop gas resources in the Basin. The company has already gained valuable experience with stimulation programs over the past two years, having conducted successful campaigns at Amungee 2H (2022/23) and Shenandoah South 1H (2023/24). This track record provides confidence in the company’s ability to safely and efficiently conduct stimulation activities year-round, including during the wet season, which can present operational challenges in the region. 

The stimulation testing follows the successful drilling, casing, and cementing of both the SS-2H ST1 and SS-3H wells late last year. These activities are essential to ensure the integrity and safety of the wells as they undergo stimulation and subsequent production phases. With the completion of the drilling phase, the company is now positioned to enhance the productivity of the wells and bring additional gas resources to market. 

To support the stimulation program, Tamboran has partnered with Liberty Energy, which is providing modern stimulation equipment. The campaign will use the first 80,000 hydraulic horsepower (HHP) frac spread imported into the Beetaloo Basin from the United States. The high horsepower of this equipment is expected to significantly improve stimulation efficiency, resulting in a proppant intensity increase of over 25%. This enhanced capability is expected to yield better outcomes compared to previous wells completed in the Basin, including the Shenandoah South 1H well. 

The use of advanced hydraulic fracturing technology, combined with the higher proppant intensity, is expected to deliver improved results, accelerating Tamboran’s progress in the Beetaloo Basin. The stimulation process will utilize a slickwater fluid design, which is a commonly used technique in hydraulic fracturing, known for its efficiency and effectiveness in unlocking hydrocarbons from unconventional reservoirs. 

Riddle expressed enthusiasm about the potential impact of the new stimulation equipment, noting that it will deliver a significant step-change in stimulation efficiency. The increased horsepower will enable the company to achieve higher stimulation intensity, which is expected to improve well productivity and increase the overall economic viability of the project. With these advancements, Tamboran Resources is poised to play a leading role in developing the gas resources of the Beetaloo Basin, which holds the potential to supply much-needed energy to the Northern Territory and beyond. 

As the stimulation campaign progresses, Tamboran will continue to monitor the performance of the wells closely, with the aim of optimizing production and advancing the development of its exploration permit EP 98. This project represents a critical phase in the company’s growth, and its success could pave the way for future expansion in the Beetaloo Basin.