Industry News

The Environment Centre NT (ECNT) has failed in its latest bid to stop the Northern Territory developing an onshore gas industry.

The NT Civil and Administrative Tribunal this week rejected a stay application lodged by the ECNT to overturn the Territory Environment Minister’s decision to approve Tamboran’s Environmental Management Plan around its Shenandoah South gas prospect.

ECNT sought an order for then Environment Minister Kate Worden’s original decision be set aside because it was not satisfied the information provided in the EMP complied with existing regulations around risks of wastewater spills and underground aquifers.

ECNT also wanted the environmental management plan referred to the NT EPA for independent assessment.

NTCAT president Mark O’Reilly rejected the ECNT’s bid for a stay in the EMP process, saying he was satisfied it would result in prejudice to Tamboran.

He said he was not satisfied the ECNT had established the balance of convenience lies in favor of granting a stay.

“In circumstances where the legislative and regulatory scheme has been informed by and amended following the (Pepper inquiry); where the Minister has ostensibly adhered to that regulatory scheme; where minimum standards and conditions apply; and where there is an obligation to remedy any environmental damage, it is not clear to me the level of risk described by the applicant is beyond what is contemplated as being acceptable under the scheme,” NTCAT found.

“I am not persuaded that it is obvious that the applicant’s case has good prospects of success or even substantial success”.

President O’Reilly identified a delay in the commencement of Tamboran’s operations would impact the company negatively in a “significant way”.

He was critical of ECNT’s delay in bringing the stay application and was satisfied that the prejudice experienced by Tamboran has been exacerbated by the timing of the application for a stay.

He found Tamboran was entitled to rely on the decision of the Minister to approve the EMP even after ECNT filed its initiating application on July 4 2024, and was not obliged to stop approved works at that time or thereafter.

Mr O’Reilly found on the face of the material provided by the parties, the Minister and the NT EPA had considered the level of risk and determined that it would be within what is envisaged under the Act and Regulations.

He was not satisfied that ECNT has established that the public interest in avoiding risk outweighs the public interest in facilitating exploration.

A broader application by ECNT to stop Tamboran producing gas at the Beetaloo is still to be heard.

Tamboran chief executive Joel Riddle said the ECNT’s decision was a “clear victory”.

“This positive decision also shines a light on the ‘public interest’ argument so often used by groups like the Environment Centre NT. This decision found the “public interest” argument used by the ECNT did not outweigh the very real public interest in facilitating gas exploration in the Northern Territory.

“Tamboran has full confidence in our environmental management plan and the NT Government’s approval processes.”

ECNT deputy director Stephanie Griffin was encouraged by the NTCAT’s decision.

“Despite the Tribunal’s decision not to grant the Stay Application, we are encouraged that the Tribunal President was satisfied that we raised serious issues for determination. We took on this case to protect the Territory’s water, our free-flowing rivers, which are at risk from practices like fracking.”

“Our challenge of the environmental approval that greenlit Tamboran’s Beetaloo fracking project is still ongoing, and we look forward to putting further evidence before the Tribunal at the substantive hearing next year.”

“This is the first ever merits review challenge of a fracking approval in the Territory. As the Tribunal President made clear, this merits review process was designed to increase transparency and scrutiny of certain decisions, like the Tamboran fracking approval. We will continue to exercise our rights to ensure fracking approval processes are transparent and subject to appropriate scrutiny.”

To view the full article online, click here.

Source: The NT News

The Environmental Defenders Office (EDO) has been hit with $9 million in legal costs after a bruising defeat in the federal court, where Justice Natalie Charlesworth delivered a withering critique of the evidence it presented.  

Acting on behalf of Tiwi Islanders, the activist group had sought to challenge Santos' $5.7 billion Barossa gas project, alleging threats to underwater cultural heritage.  

Justice Charlesworth's ruling dismissed the claims, marking a significant setback for the activist-led legal action. 

Earlier this year, the federal court ruled that the claim made by a group of 11 Tiwi Islanders—supported by EDO—asserting that the pipeline would harm areas of cultural significance was not "broadly representative" of the views held by First Nations people in the area.  

The decision favoured Santos, with the court dismissing the application and discharging the injunction that prevented pipelay activities south of the kilometre 86 (KP86) point along the Barossa Gas Export Pipeline in the Timor Sea.  

Subsequently, Santos started legal proceedings against the legal group to recoup costs.  

Joshua Burgoyne, the NT minister for lands, planning, and environment, welcomed the court order, saying it had positive ramifications for the Territory. 

"This decision calls out environmental ‘lawfare,' where environmental groups seek to stall and stop proponents from continuing developments," Burgoyne said.  

"We won't allow activists and economic vandals to manipulate their way into halting or delaying key Territory projects with mistruths and false information." 

Burgoyne added that the federal court's decision was a testament to the Territory's and Commonwealth's environmental laws, showing they withstood robust scrutiny through the court system. 

In April, Santos formally petitioned the federal court to subpoena several activist entities, namely Sunrise Project, ECNT, Market Forces, and Jubilee, and secure court approval to access activists' financial records and correspondences.   

This calculated manoeuvre aims to ascertain whether these separate organisations contributed financially to the EDO, which has received funds from the Australian government.  

The documents subpoenaed in the ongoing court battle between Santos and EDO were published on Wednesday, revealing what the O&G peak body, Australian Energy Producers, describes as "inappropriate conduct."   

Australian Energy Producers urged the government to stop funding EDO, citing, "It is unacceptable that the EDO continues to receive $2 million a year in taxpayer funds from the federal government to disrupt and delay critical energy projects and put Australia's economic and energy security at risk".  

EDO states on its website that it uses the law to protect Australia's environment, people, and wildlife.  

Source: Energy News Bulletin 

The CLP Government is delivering on its commitment to rebuild the economy by appointing an Approvals Fast Track Taskforce.

The taskforce, consisting of industry experts from across the Northern Territory, will provide recommendations to Government on how to reform regulatory processes, and reduce approvals timeframes.

Chief Minister Lia Finocchiaro said: “The taskforce will operate for six months and play a key role in streamlining approvals, and reducing red tape, to grow business and investment opportunities in the Territory.”

The taskforce, which held its first meeting on Tuesday, will be chaired by former Property Council NT President, Mark Garraway.

The membership consists of:

·       M+J Builders Director, Michael Buckley

·       NT Link Director, Tony Smith

·       Territory Instruments Managing Director, Stuart Kenny

·       Humpty Doo Barramundi CEO, Dan Richards

·       Foxalicious Fruit Owner, Andrew Dalglish

·       Louw Group Director, Hermanus Louw

·       Stone House, Charlie’s of Darwin and Darwin Distillery owner, Bec Bullen

“The CLP has promised to rebuild the Territory’s economy which was trashed under the previous government, and this Taskforce, along with the Territory Coordinator, will play a key role in getting the NT moving in the right direction,” said Mrs Finocchiaro.

“The Taskforce will provide real world advice to Government on options for decreasing regulatory processing times and easing the burden on business and industry, focussing on reforms that will benefit the greatest number of businesses.

“It will have a broad remit but will focus on small businesses, including in the construction, retail, accommodation and hospitality sectors.

“The Taskforce will take a risk-based approach, seeking to balance the economic benefits of improved investment and economic development with the need to avoid undue risk for Territorians.”

Source: Northern Territory Government Newsroom

Office of the Chief Minister - Hon. Lia Finocchiaro

Empire Energy Group Limited (“Empire”) is pleased to announce it has executed binding term sheets with Macquarie Bank Limited (“Macquarie”) for the establishment of new credit facilities totaling A$65 million. Together with existing cash on hand, proceeds from the credit facilities will be applied to Carpentaria-5H (“C-5H”) and the Carpentaria Gas Plant and associated infield infrastructure.

The A$65 million credit facilities with Macquarie comprise:

• R&D Facility (A$30 million upsized from A$2.25 million existing facility): Facility sized at 80% of the FY2024 and FY2025 estimated tax rebates under the Australian Government’s Research and Development (“R&D”) Tax Incentive Scheme. The R&D Facility provides Empire with additional liquidity and will allow Empire to better manage its working capital requirements. Funds can be applied to Northern Territory exploration, appraisal and development activities including C-5H and construction of infield infrastructure; 
• Performance Bond Facility (A$5 million, same size as existing facility): to meet Empire’s Northern Territory environmental bonding obligations through Macquarie bank guarantees in favour of the Northern Territory Government on a non-cash-backed basis; and 
• Midstream Infrastructure Facility (A$30 million new facility): proceeds can be applied to the refurbishment and construction of the Carpentaria Pilot Gas Plant. Repayment of the Midstream Infrastructure Facility will be via a tolling fee. 

The R&D and Performance Bond Facilities represent a refinancing of Empire’s existing credit facility with Macquarie.

Availability under the R&D Facility has been increased from 60% of expected R&D tax rebate under the existing facility to 80% of expected R&D tax rebate while maintaining the same interest margin.

Pricing for the Performance Bond Facility has been reduced from BBSW + 10% to a fixed 10% per annum on issued guarantees.

The other key terms of the credit facilities are included in Appendix A to this announcement.

Carpentaria-5H Drilling Update

The surface section of the C-5H well has been successfully drilled and cased, effectively isolating the Cambrian Limestone Aquifer. Empire is currently drilling ahead in the vertical section of the intermediate hole at a depth of 770 metres MD at the time of publication of this release. The well path will soon begin building and turning towards the Middle Velkerri B shale target interval. After the intermediate section is drilled and cased, Empire will drill and case the horizontal section.

Source: Empire Energy Group

The CLP Government is delivering on its commitment to ease cost of living pressures by increasing the Home and Business Battery Scheme bonus from $5,000 to $12,000.

From December 1, 2024, the boost to the scheme will provide Territorians with greater access to renewable energy solutions, lowering energy bills and supporting local businesses involved in the supply and installation of solar PV systems and batteries.

Minister for Renewables, Gerard Maley, said it was part of the CLP Government’s commitment to practical outcomes for Territorians.

“As promised, we are more than doubling the battery bonus for Territorians,” he said.

“We understand the challenges power prices present, and this increase will provide an accessible entry point for households and businesses looking to make the switch to renewable energy.

“This is about providing practical solutions to ease affordability pressures while also providing greater energy grid stability.”

The Home and Business Battery Scheme offers eligible homeowners and businesses access to up to $12,000 for a battery subsidy of $400 per kilowatt-hour of usable system capacity.

“Our government is doubling the funding pool from $3 million to $6 million, giving more Territorians access to solar batteries and inverters,” said Mr Maley.

Eligible owners can use the grants to either:

• Buy and install a solar photovoltaic (PV) system with an eligible battery and inverter, or
• Buy and install an eligible battery and inverter, to complement an existing solar PV system.

Batteries allow households and businesses to maximise use of electricity generated from rooftop solar PV systems while contributing to grid stability and reducing power system costs.

“By charging their battery during the day, families and businesses can store energy to use during peak times or when it is cloudy, making it easier to manage costs and run their appliances, including aircons, more efficiently,” said Mr Maley.

The grant is available from 1 December 2024 for 12 months, or until the $6 million funding pool is fully subscribed.

The CLP Government is also doubling the peak feed-in-tariff so households and businesses can get 18.66c/kWh between 3pm and 9pm year-round for electricity exported to the grid.

The new rate will come into effect from July 1, 2025.

This is to ensure Power Water Corporation ICT upgrades in early 2025 are complete, and to enable the necessary changes to billing systems to reflect the peak feed-in-tariff.

“Supplementing grid supplies with household and business solar batteries means we can reduce the peak demand on gas-fired generation, increase energy reliability and cut emissions,” said Mr Maley.

The higher feed-in-tariff during the peak period of 3pm to 9pm will encourage people with solar and batteries to export more power at these times, easing pressure on the grid.

From 1 July 2025, eligible customers will automatically receive the higher feed-in-tariff from their electricity retailer, potentially saving them an average of $150 per year.

Learn more about the battery scheme grant and feed-in tariff by visiting the Territory Renewable Energy website, and access the grants via Grants NT.

Source: Northern Territory Government 

Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce the spudding of the Shenandoah S2-4H (“SS4H”) horizontal well (previously referred to as the SS3H well) in exploration permit 98 in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s (“Falcon Australia”) joint venture partner, Tamboran (B2) Pty Limited (“Tamboran B2”).

SS4H is the second well of the Shenandoah South Pilot Project and will be drilled from the same well pad as the Shenandoah S2-2H ST1 sidetrack well (“SS2H ST1”) using the H&P super-spec FlexRig® Flex 3 Rig.

The SS4H well is estimated to be drilled to a total measured depth of 20,669 feet (6,300 metres) including a horizontal section of approximately 10,000 feet, (3,000 metres), targeting the Amungee Member B-shale.

Following the drilling of the SS4H well, Liberty Energy will complete the stimulation of the SS2H ST1 and SS4H wells, with 34 and 60 stages planned at the respective wells. Stimulation of both wells is expected to commence in Q1 2025 with 30 day initial production flow rates expected in the same period.

Falcon Australia will continue its participation in the Shenandoah South Pilot Project at its elected participating interest of 5%.

Philip O’Quigley, CEO of Falcon commented:

“The spudding of the SS4H horizontal well is an exciting next step in the development of the Beetaloo Sub-basin and we will look forward to updating the market as operations progress.”

To view the full press release, click here.

Source: Falcon Oil & Gas Ltd. 

Environment Centre NT’s emergency bid rejected by NT tribunal.

Tamboran Resources believes it has deflected an activist group's efforts to proceed with fracking at the Shenandoah South project in the Northern Territory's Beetaloo Basin. The NT Civil and Administrative Tribunal (NTCAT) today heard an emergency application by the Environment Centre NT (ECNT) but did not make a ruling.

Tamboran's long-heralded Shenandoah South Pilot Project, a shale gas development in the Beetaloo Basin, has recently received Major Project Status from the NT government, reflecting its potential role in energy security. 

The project includes plans for a proposed LNG export terminal at Darwin's Middle Arm precinct, which is expected to address east coast gas shortfalls and contribute to local energy supplies. The development is projected to create thousands of jobs and provide an economic boost to the NT.

The ECNT sought an urgent hearing, citing new evidence related to Tamboran's fracking timeline. However, the NTCAT President ruled against issuing any orders at the emergency hearing on Friday.  

"The ECNT asserted that Tamboran's Public Announcement dated 13 November 2024 was somehow relevant to the Stay Application heard on 5 November 2024," a Tamboran spokesperson said.  

"The Public Announcement provided an updated timeline as it relates to Tamboran's stimulation Campaign planned to Commence in 1Q 2025. We must refrain from further comments whilst the President of the Tribunal is making a determination on the Stay Application."

 "Tamboran has full confidence in our environmental management plan and the NT Government's approval processes that are all based on the Pepper Inquiry recommendations," the spokesperson added.

Meanwhile, a spokesperson for ECNT stated that the group would withhold further comment until the Tribunal reaches a decision on the stay application. 

The Tribunal has not yet made a decision on the stay application,' the company said in a statement to Energy News Bulletin.

Source: Energy News Bulletin

To view the news article online, click here.

Santos today announced an updated capital allocation framework that will target returns to shareholders of at least 60 per cent of all-in free cash flow from 2026, following a period of major capital investment to bring significant new production online from the Barossa and Pikka projects.

In addition, Santos announced a carbon storage growth target to build and operate a commercial carbon storage business that would permanently store approximately 14 million tonnes of third-party CO2e per annum by 2040.[1]

The target is equivalent to around 50 per cent of Santos’ 2023 equity Scope 3 emissions from the combustion and use of our products.

The successful startup of Santos’ 1.7 million tonnes per annum Moomba Carbon Capture and Storage (CCS) project last month, with the technology and reservoirs performing as expected, demonstrates the potential for future phases to provide safe, low-cost, permanent carbon storage for customers and hard-to-abate industries.

Speaking at the company’s Investor Day in Sydney, Managing Director and Chief Executive Officer Kevin Gallagher said today’s announcement confirms Santos’ commitment to prioritise shareholder returns when new production comes online and to support the global energy transition while generating new revenue streams for the business.

“Santos has been unrelenting in sticking to its strategy and implementing its disciplined operating model,” Mr Gallagher said.

This continues to deliver strong production and project execution to backfill our infrastructure with highlights including:

• Angore wells in PNG now online with two wells successfully commissioned and connected, supplying up to 350 million standard cubic feet of gas per day to sustain PNG LNG production
• Commencing drilling of the highly prospective Hides Footwall structure
• Barossa now 84 per cent complete with first gas expected in third quarter 2025
• Pikka now ~70 per cent complete with first oil expected by the first half of 2026.

Santos’ world-class LNG portfolio is backed by long-term contracts with tier one buyers and flexible contract terms to provide risked upside potential.

“The proximity of our projects to Asian markets provides a significant shipping cost and emissions advantage compared to supply from east coast US and Middle East suppliers,” Mr Gallagher said.

“We are delivering on our strategy to develop upstream production to backfill and sustain our leading infrastructure position, decarbonise our operations and build a commercial carbon management services and low-carbon fuels business to meet future demand.

“With Barossa and Pikka coming online, Santos’ production is expected to increase by more than 30 per cent by 2027 compared to 2024, significantly lowering unit production cost which will support strong free cash flow generation throughout the commodity price cycle.

“The simplified capital allocation framework announced today reflects our commitment to prioritise shareholder returns following the company’s investment over recent years in new production from Barossa and Pikka.

“From 2026 we will return at least 60 per cent of all-in free cash flow to shareholders, and when gearing is below our target range of 15-25 per cent, 100 per cent of free cash flow will be returned to shareholders in the form of dividends and/or buybacks.

“The market outlook for LNG into Asia, domestic gas in Australia and liquids remains strong out to 2040 and beyond.

“2024 is set to be another peak consumption year for hydrocarbon fuels globally, making it increasingly clear that decarbonisation of their production and use is critical to the world’s net zero goals.

“Santos has a leading infrastructure and adjacent resource position that makes it well placed to meet ongoing demand with low-cost production.

“We have a wealth of backfill options to sustain production at our Gladstone and PNG LNG plants, which will be Santos’ top priority for future development capital – provided it fits within our capital allocation framework following the startup of Barossa and Pikka.

“These options include unlocking new geological plays in the Cooper Basin, which we have been appraising over the last few years, and prolific gas resources in the McArthur (Beetaloo) Basin shales in the Northern Territory as well as in the PNG Hela, Eastern Highlands and Gulf Provinces.

“Very importantly, our gas resources and LNG facilities are close to large-scale, relatively low-cost carbon storage resources and existing infrastructure that can be repurposed for CCS.

“The International Energy Agency’s Net Zero Emissions by 2050 (IEA NZE) scenario assumes that 70 per cent of global gas demand will be served with abated gas through CCS.

“We are extremely proud of the performance to date of the first phase of Moomba CCS that has now stored more than 150 thousand tonnes of CO2.

“Moomba CCS is groundbreaking as one of the world’s largest and lowest-cost CCS projects, dedicated to permanent CO2 storage.

“This first phase of Moomba CCS will safely and permanently store up to 1.7 million tonnes of CO2 per year, depending on CO2 availability.

“That is equivalent to 70 per cent of Australia’s total annual net emissions reduction in 2023.”[2]

“The IEA NZE scenario assumes more than 2.5 billion tonnes of CO2 will be stored globally each year by 2035, about 50 times more than today.

“The success of Moomba CCS to date and the strong outlook for CCS demand growth gives us a high level of confidence in setting our new carbon storage growth target to build and operate a commercial carbon storage business.

“With a strong balance sheet, line of sight to long-term, cash-generative production and a healthy portfolio of sustainable backfill and expansion options, I am confident Santos can continue to deliver superior value for shareholders over the long term,” Mr Gallagher said.

Guidance

There is no change to Santos 2024 production, unit cost and capital expenditure guidance.

Santos will provide 2025 guidance with our 2024 fourth quarter report in January 2025.

Live Webcast

A live webcast of the 2024 Investor Day will be available on the Santos website at www.Santos.com from 8.30am ACDT today.

[1] This is a target not a forecast and is a growth target for gross storage from Santos operated carbon storage projects. The target is ambitious and subject to substantial engineering, finance, commercial and policy work to establish enabling frameworks with customers, governments, regulators and other stakeholders. The potential projects that would enable achieving the target remain at an early phase of planning and commercial and economic viability is still to be confirmed.

[2] https://www.abs.gov.au/statistics/measuring-what-matters/measuring-what-matters-themes-and-indicators/sustainable/emissions-reduction

To view the full announcement '2024 Investor Day', click here.

Source: Santos

Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that the Shenandoah South 2H sidetrack (“SS2H ST1”) well has been cased and suspended at a total measured depth of 16,182 feet (4,932 metres) in the Beetaloo Sub-basin, Northern Territory, Australia. This includes a 5,906-foot (1,800-metre) horizontal section within the Amungee Member B-Shale, of which ~5,577 feet (1,700 metres) is planned to be stimulated with Falcon Oil & Gas Australia Limited’s (“Falcon Australia”) joint venture partner, Tamboran (B2) Pty Limited (“Tamboran B2”).

The decision to case and suspend SS2H ST1 comes following consultation with Tamboran B2 on the failure of a directional drilling tool while drilling the horizontal section. This decision avoids additional rig costs and will enable the immediate drilling of the Shenandoah South 3H (“SS3H”) well from the same well pad, which is planned to be drilled with a 10,000-foot (3,000 metre) horizontal section in the Amungee member B-Shale.

Following the drilling of the SS3H well, Liberty Energy will complete the stimulation of the SS2H ST1 and SS3H wells with 34 and 60 stages planned at the respective wells. Stimulation of both wells is expected to commence in Q1 2025 with 30 day initial production flow rates expected in the same period.

The successful stimulation of SS2H ST1 will create a drilling spacing unit of 20,480 acres.

Falcon Australia will continue its participation in both wells in the Shenandoah South Pilot Project at its elected participating interest of 5%.

To view the full announcement, click here.

Source: Falcon Oil & Gas Ltd.

EP 98 Operational Update: SS-2H ST1 well cased and progressing to SS-3H well

Highlights

• The Shenandoah South 2H sidetrack (SS-2H ST1) well has been cased and suspended at a measured depth of 16,182 feet (4,932 metres). This includes a 5,906-foot (1,800-metre) horizontal section within the Mid Velkerri B Shale, of which ~5,577 feet (~1,700 metres) is planned to be stimulated.

• Tamboran will immediately commence the drilling of the Shenandoah South 3H (SS-3H) well, which is planned be drilled with a ~10,000-foot (~3,000-metre) lateral section in the Mid Velkerri B Shale.

• Following the drilling of the SS-3H well, the Liberty Energy (NYSE: LBRT) stimulation equipment is expected to complete the SS-2H ST1 and SS-3H wells with at least 34 and 60 stages, respectively, commencing in 1Q 2025.

• Lessons learned from the Shenandoah South 2H (SS-2H) well were successfully incorporated in the drilling of the SS-2H ST1 well, which resulted in drilling rates of 1,240 feet per day (from spud of the sidetrack to total depth (TD), ~31% faster than the SS-2H well over the same interval.

• The Company remains on track to deliver IP30 flow rates from both the SS-2H ST1 and SS-3H wells during 1Q 2025.

Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said:

“Following consultation with our Beetaloo Joint Venture (BJV) partners, the decision was made to case and suspend the SS-2H ST1 well at a measured depth of 16,182 feet (4,932 metres), following the failure of a directional drilling tool while drilling the horizontal section.

“The decision to case the SS-2H ST1 well early will avoid additional rig costs and will enable the immediate drilling of the SS-3H well from the same well pad. Following consultation with our oilfield services provider, Tamboran expects an increased performance from the directional drilling tools that will be used in the SS3H well.

“Prior to the completion of drilling the SS-2H ST1 well, I was pleased to see our team successfully apply lessons from prior wells in the Beetaloo Basin and achieve record drilling rates of 1,240 feet drilled per day from spud of sidetrack to TD, 31% faster than the SS-2H well. We expect further learnings to be applied in the drilling of the SS-3H well.

“Importantly, Tamboran's geologic modeling of the Mid Velkerri B Shale continues to be validated, with a step-out of ~1,640 feet (~500 metres) from the original SS-2H well. The SS-2H ST1 well logged a consistent, high quality reservoir section with no faulting within the shale formation.”

To view the full ASX announcement, click here.

Source: Tamboran Resources