Tamboran Resources: 1Q FY25 Drilling Update and Strategic Developments
TBN (TBN) Share Update November 2024 Tuesday 12th
Tamboran Resources Announces Progress in Beetaloo Basin Drilling
Tamboran Resources Corporation (NYSE: TBN, ASX: TBN) has released a comprehensive update on its first quarter FY25 activities, highlighting significant progress in its Beetaloo Basin operations.
Instant Summary:
- Completed drilling of SS-2H well with a 10,000-foot horizontal section.
- SS-2H ST1 well nearing completion with improved drilling efficiency.
- Drilling of SS-3H well to commence in November 2024.
- Successful import of Liberty Energy completion equipment for early 2025 operations.
- Development of a local sand mine to reduce completion costs.
- Cash reserves of $81.6 million, fully funding upcoming projects.
Drilling Achievements
Tamboran Resources has completed the drilling of the SS-2H well, marking the first well in the Beetaloo Basin with a 10,000-foot horizontal section. This achievement is a testament to the company's strategic focus on enhancing drilling efficiency and leveraging advanced technologies.
The SS-2H ST1 well, a sidetrack of the original SS-2H, has been successfully drilled to a depth of 16,200 feet, showcasing a significant improvement in drilling rates. The well is expected to be completed by the end of November 2024.
Future Plans
The company plans to commence drilling the SS-3H well from the same pad in November 2024, with completion expected in early 2025. This aligns with Tamboran's goal to deliver initial production flow rates (IP30) in the first quarter of 2025, subject to weather conditions.
Strategic Developments
Tamboran has successfully imported Liberty Energy's completion equipment into the Beetaloo Basin, which will be used for the stimulation of the SS-2H ST1 and SS-3H wells. This move is expected to enhance operational efficiency and reduce costs.
Additionally, the development of the first local sand mine is underway, which is projected to significantly reduce completion costs. This initiative reflects Tamboran's commitment to optimizing its supply chain and reducing operational expenses.
Financial Position
As of September 30, 2024, Tamboran Resources reported a cash balance of $81.6 million, including proceeds from the sale of a US drilling rig. This financial position ensures that the company is fully funded to achieve its operational targets for the upcoming quarter.
The advancements in drilling and strategic developments in the Beetaloo Basin position Tamboran Resources favorably for future growth. The successful import of completion equipment and the development of a local sand mine are expected to reduce costs and improve efficiency, potentially boosting investor confidence.
Investor Reaction:
Analysts are likely to view Tamboran's progress as a positive step towards achieving its long-term strategic goals. The company's ability to enhance drilling efficiency and secure necessary equipment indicates strong operational capabilities.
Conclusion:
Investors should closely monitor Tamboran's upcoming drilling results and strategic initiatives. The company's focus on cost reduction and operational efficiency could offer promising returns, making it a stock to watch in the energy sector.