- 01Beetaloo gas sales delivered US$1.8m revenue; first cash received in November.
- 02Pilot well flows support gas deliverability; SPCF commissioning continues.
- 03Three new wells drilled; contracted supply is expected from early 2027.
Tamboran Resources (ASX: TBN) has begun selling natural gas from the Northern Territory’s Beetaloo Basin, marking the transition of its Shenandoah South Pilot Project from appraisal towards early production.
The company and partner Daly Waters Energy delivered Tamboran’s net share of 0.31 billion cubic feet of gas during the September quarter, generating US$1.8 million in sales revenue.
First cash receipts followed in early November, while the Sturt Plateau Compression Facility (SPCF) remains in commissioning ahead of a contracted supply arrangement expected to start in early 2027.
New flow results from the pilot wells provide further evidence of gas deliverability as Tamboran prepares additional stimulation work and a broader appraisal campaign next year.
Initial SPCF Gas Sales
The SPCF began processing gas in September after construction finished in August, with its final cost forecast to be about US$10m below budget once practical completion is achieved.
During commissioning, gas receives 75% of the contracted price because supply remains interruptible, before a take-or-pay arrangement covering 40 terajoules per day is expected to commence.
After being shut in for about a year, the SS2-2H ST1 well averaged 10.2 million cubic feet per day (MMcf/d) over 720 hours of interrupted production from approximately 5,500 feet of lateral.
That result represents an improvement on its 2025 test, although it is not a continuous 30-day initial production (IP30) rate and operations were affected by gas nominations and commissioning interruptions.
Two other Shenandoah South wells recorded IP30 rates of 8.8MMcf/d and 10.0MMcf/d, with continuing water recovery and elevated downhole pressures supporting management’s expectation of further clean-up gains.
Further Drilling Across Basin
Tamboran and Daly Waters Energy have completed drilling three additional wells on the SS1 pad, with usable horizontal sections totalling about 29,000ft following a sidetrack required by a downhole problem.
The drilling program remains within its contingency budget, and fracture stimulation is planned across the December quarter and the wet season before the wells are connected to the SPCF in the first quarter of 2027.
Early testing of locally sourced Beetaloo Red Sand in part of an earlier stimulation campaign showed no apparent deterioration in gas deliverability, prompting plans to test it again on the SS1 pad.
In the eastern Beetaloo, Santos (ASX: STO) has commenced a two-well appraisal program in exploration permit 161, where Tamboran retains a 25% non-operated interest.
The first pilot hole intersected the targeted Velkerri Shale formations, with horizontal drilling under way and stimulation and flow testing of both appraisal wells planned for 2027.
Next Development Steps
Tamboran ended September with a reported cash balance of US$165m, including its share of restricted funds, after net capital expenditure of US$56.9m during the quarter.
Net drawn debt was US$37m, principally associated with construction of the SPCF, and the company reported a further US$26m of undrawn debt capacity attributable to its interest.
“This quarter Tamboran and Daly Waters Energy made history by becoming the first companies to sell gas from the Beetaloo Basin—gas from the Beetaloo is now a major contributor to the domestic Northern Territory market,” managing director Todd Abbott said.
“The 2027 calendar year is about building the resource across our 2.8 million net prospective acre Beetaloo Basin position.”
“This includes step-out drilling and flow testing within the Beetaloo Central Development Area and EP 161 acreage positions, [and] we expect to undertake additional wells in our Orion acreage once we finalise our strategic partnership.”
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