Natural Gas Find for Tamboran in Ireland (Update)
Australian-based Tamboran Resources has confirmed a massive natural gas find in north County Leitrim, Republic of Ireland, and in Co. Fermanagh in Northern Ireland, with the potential for ultimate production of up to 4.4 trillion cubic feet (tcf) of gas. The gas potential is split between Northern and the Republic of Ireland, with an estimated 2.2 tcf reserves of gas in each.
The company says the find could ensure security of gas supply to the whole of country for the next 40 years in the Republic and for 50 years in Northern Ireland.
Full analysis of the findings, which will be completed under the work programme required by Tamboran's licence in the Republic of Ireland, will be released later this year. Additionally, the company will be carrying out a full Environmental Impact Assessment (EIA), to include a 12 month baseline study of all environmental aspects, including soil, groundwater, air quality, noise levels, and seismic activity, to be published upon completion in early 2013.
The company says that, if granted an exploration licence by the government in the Repubic of Ireland, exploration drilling could begin on the area by 2014, with the potential for commercial development to begin just a few years after that. Currently, Tamboran Resources holds a Licensing Option in the Republic of Ireland, with a Petroleum Licence granted to the company, in a neighbouring area of the Lough Allen Basin, in Northern Ireland.
A discovery of this size is likely to have a positive financial impact on the Republic Ireland. Tamboran says the country, which is in the midst of a deep recession, will receive tax revenues of up to €4.9 billion, including corporation tax, VAT, employment taxes and exploration tax, as a result of the find. It is also sees the potential for up to 600 full-time jobs by 2025, and up to 2,400 indirect jobs.
CEO of Tamboran Resources, Richard Moorman, said the tax take and job creation would be facilitated by a planned investment of up to €7 billion into the Republic.
"Our projections of the economic gains for Ireland from this proposed €7 billion investment includes up to €4.9 billion in tax revenues over the lifetime of the project, 600 full-time, long-term direct jobs by 2025 (with up to 2,400 indirect jobs), for a total of about 13,700 direct person-years of employment through to the year 2050," he said.
"Tamboran expects to provide comprehensive and continuous training to all of its local employees to ensure they can commercially succeed within Tamboran."
The discovery will also create the same amount of jobs in Northern Ireland, with a £6 billion investment to be made by Tamboran there. Tamboran estimates that the find will be worth £6.9 billion in taxes to the Northern Irish economy.
The discovery could also have a drastic effect on the security of energy supply in Ireland, breaking the country's dependance on imported gas.
"Our initial analysis suggests very substantial shale gas reserves in the north Leitrim area. Allowing for even modest rates of recovery, the energy and economic benefits would be tremendous," Mr. Moorman said.
"Security of energy supply is a primary concern for all governments. Our analysis indicates that the island of Ireland is in the fortunate position to have substantial gas reserves under its feet. In north Leitrim alone, we believe that there could be up to 12 years of the present daily gas consumption of Ireland. Realising these resources would secure gas supply for decades, protect consumers and businesses from market uncertainty and negate the risks associated with being over-dependent on unpredictable external supplies. County Leitrim would be able to attract additional businesses that would benefit directly from a secure local natural gas supply."
Though the find is potentially lucrative, shale exploration is still a charged subject in Ireland, with opponents vehemently opposed to hydraulic fracture stimulation activity. Currently, a study is underway by the Environmental Protection Agency, as ordered by Minister for Energy Pat Rabbitte, into the effects of fracking, with results expected in February or March of this year.
However, Mr. Moorman has again reaffirmed that Tamboran is working to protect against environmental damage, including using a chemical free fracking solution.
"Tamboran will not utilise any chemicals in its hydraulic fracturing process in Ireland, and we will be bringing together the best technologies developed worldwide into this one project to ensure the safe and responsible development of a potentially tremendous resource for Ireland," he said.
"We are undertaking a full Environmental Impact Assessment, which will set out the specific criteria under which the company must safely and responsibly conduct its operations to the very highest standards... Tamboran undertakes to operate safely and our commitment to openness and transparency will remain every step of the way."
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