Tamboran Resources Corporation had a productive December quarter as it “maintained momentum towards first gas production in the Beetaloo Basin,” according to the company’s chief executive officer Joel Riddle.
The quarter included the completion of drilling production wells at Shenandoah South 2H sidetrack (SS-2H ST1) and 3H (SS-3H) in EP 98 to total measured depths of 16,182 feet (4,932 metres) and 21,169 feet (6,452 metres) respectively.
Importantly, the SS-3H well included the first 10,000-foot (3,048-metre) horizontal section in the Mid Velkerri B Shale.
Material step change
“Lessons from the original SS-2H well were incorporated into drilling of these two wells, resulting in a material step change in drilling efficiency. The SS-3H well was drilled in 25 days, 10 days and 43% faster than the SS2H well,” Riddle said.
Subsequently, stimulation activities with Liberty Energy’s 80,000 hydraulic horsepower (HHP) modern stimulation equipment began in January 2025. The SS-2H ST1 well completed 35 stages across a 5,483-foot (1,671-metre) horizontal section.
Precautionary steps were taken to pause SS-3H completion operations with stress detected in the casing connection. Reinforcement activities are planned this quarter with the re-commencement of the stimulation program next quarter ahead of IP30 in mid-2025.
Record intensity
“In January 2025, we commenced the stimulation of the SS-2H ST1 and SS-3H wells. A total of 35 stages were completed in the SS-2H ST1 well over a 5,483-foot (1,671-metre) horizontal section in the Mid Velkerri B Shale,” Riddle said in the quarterly report.
"The operations achieved Beetaloo Basin record average proppant intensity of 2,706 pounds per foot (lb/ft), which was ~26% higher than the SS-1H well. The SS-2H ST1 well is currently being cleaned ahead of the commencement of flow testing, with IP30 flow rates anticipated in April 2025.”
APA Group agreements
Also, during the December quarter, Tamboran entered into binding agreements with APA Group whereby APA will build, own and operate the 23-mile (37-kilometre) 12-inch diameter Sturt Plateau Pipeline for the proposed Shenandoah South (SS) Pilot Project. Long lead items (LLIs) have been secured.
“We reached binding agreements with APA to progress with pipeline infrastructure to deliver sales gas from the proposed Shenandoah South Pilot Project into the Northern Territory gas network,” Riddle said.
"APA will build, own and operate the pipeline. Tamboran and Daly Waters Energy (DWE) have contracted all foundation capacity on the SPP from the commencement of operations until at least 2041.
"Key Government approvals for the construction of the Sturt Plateau Compression Facility (SPCF) have also been secured.”
During the quarter, Tamboran secured a committed US$23 million (A$35 million) line of credit from Macquarie Bank Limited, part of which will be used for guarantees required by APA for the construction of the SPP.
In January 2025, Tamboran continued its progress by entering into a non-binding MoU with Santos Limited to undertake technical studies relating to a potential Darwin LNG (DLNG) Train 2 expansion and collaborative work on the jointly owned EP 161 acreage in the Beetaloo Basin.
Gas for NT
Riddle said the initial two wells for the Pilot project were crucial for Tamboran to deliver much-needed gas volumes into the Northern Territory market.
“With the majority of its electricity generated from natural gas, the Northern Territory will benefit significantly from this new source of supply.
“Importantly, the project will generate revenue through royalties for Native Title Holders and the Northern Territory Government, while also creating employment opportunities for Traditional Owners.
“Australia must embrace responsible domestic gas production, particularly from regions like the Beetaloo Basin. The Beetaloo is subject to stringent regulations to ensure high environmental and emissions standards.
“Local sources of natural gas offer a compelling advantage over reliance on international imports, which may originate from less regulated environments with potentially higher emissions and costs.”
As of December 31, 2024, the Tamboran had a cash balance of US$59.4 million, following the receipt of an A$9.9 million (US$6.2 million) research and development (R&D) tax credit relating to its FY23 Beetaloo Basin activities.