Tamboran Resources joins US energy services expert in strategic Beetaloo shale gas partnership

Tamboran Resources (ASX: TBN) has reached a strategic partnership agreement with leading US oilfield services firm Liberty Energy to progress the Shenandoah South shale gas project in the Northern Territory’s Beetaloo Basin.

Along with its significant shale fracking (hydraulic fracturing) expertise and equipment, Liberty has also agreed to take a $15.2 million stake in the Australian explorer.

“We welcome the strategic investment from Liberty, which provides alignment between the two companies and demonstrates Liberty’s confidence in the development of the Beetaloo Basin,” Tamboran managing director and chief executive officer Joel Riddle said.

“Tamboran continues to partner with the best-in-class operating and technology companies to support the development of our assets.”

“The strategic agreement with Liberty follows the partnership with Helmerich and Payne, which imported a modern US drilling rig into the Beetaloo Basin in 2023 and aims to result in material cost reduction and improved efficiency across our operations.”

“The supply of stimulation equipment to the Beetaloo Basin is Liberty’s first outside of North America and we look forward to working with them for many years to come.”

Specialists and equipment on the way

Under the partnership agreement, Liberty will import a modern frac fleet into the Beetaloo Basin in 2024 to support a major stimulation campaign at the proposed 40 million cubic feet per day Shenandoah South pilot project, which they will look to bring on-stream in 2026.

The importance of bringing the dedicated frac fleet and crew into the Beetaloo Basin is that it has the potential to reduce the delays experienced in mobilising equipment to site, thereby significantly increasing completion efficiencies and reducing the costs of future stimulation programs.

Sand mining plans

Tamboran and Liberty aim to further reduce costs by discovering and mining their own frac sand.

Under the strategic partnership, Tamboran has agreed to work with Liberty to bring the latest sand mining and handling management solution to the Beetaloo Basin.

Via a subsidiary, Tamboran has already applied for 14 extractive mineral exploration licences in close proximity to Shenandoah South to assess their potential for future frac sand extraction.

Significant Beetaloo position

With ~1.9 million net prospective net acres, Tamboran is the largest acreage holder and operator in the Beetaloo sub-basin, where international specialists have identified a natural gas resource of global significance.

Liberty Energy’s chair and chief executive officer Chris Wright said the company is looking forward to partnering with Tamboran to develop a new shale gas basin in Australia.

“Natural gas is by far the world’s fastest growing energy source because of its myriad uses and compelling advantages. Significant Beetaloo gas production could help energise Australia’s future and help meet Asia’s insatiable demand for natural gas to power economic growth, improve air quality and lower greenhouse gas emissions,” he said.

“Beetaloo development perfectly aligns with our broader mission to better human lives.”