Tamboran Resources Corporation has secured fresh capital and operational momentum as it prepares to deliver the largest single drilling program in the Beetaloo Basin to date, following a productive March 2025 quarter.
Stimulation has wrapped
The company wrapped up a 35-stage stimulation of the Shenandoah South 2H sidetrack well (SS-2H ST1) across a 1,671-metre horizontal section.
The well, now undergoing a 90-day flow test after a 62-day soaking period, is expected to provide key performance data for the Shenandoah South (SS) Pilot Project.
Tamboran also raised US$55.4 million (pre-fees) through a Private Investment in Public Equity (PIPE) placement, priced at a 15% discount to its share price on 12 May.
“Having successfully raised funding to progress drilling activity in the Beetaloo Basin, we are focused on delivering the largest single drilling campaign in the region to date,” said CEO Joel Riddle.
“The program includes three wells drilled from the SS2 pad, commencing in mid-2025, and stimulation of up to 240 stages across four 10,000-foot horizontal wells.
Necessary to keep the lights on
“These wells are going to be critical for meeting the binding Gas Sales Agreement with the Northern Territory Government that will supply much needed gas to Darwin to keep the lights on.
“The SS-2H ST1 well commenced flow testing in mid-May 2025, which is being tested for a full 90-days over a 5,483-foot (1,671-metre) horizontal section. We plan to update the market on the initial 30-day flow test (IP30) in mid-June 2025.
The three additional wells (SS-4H, SS-5H and SS-6H) are scheduled to commence in mid-2025, while stimulation of four wells is planned in late 2025 or early 2026.
The program targets first gas production of some 40 million cubic feet per day (around 19 MMcf/d net to Tamboran) by mid-2026, subject to joint venture and regulatory approvals.
The quarter also saw Tamboran and Daly Waters Energy, LP (DWE) finalise the checkerboard of their joint acreage across EPs 76, 98 and 117. DWE will acquire a 100,000-acre non-operating interest for US$15 million, pending approvals.
Tamboran has earmarked 406,693 acres as its Phase 2 Development Area and has engaged RBC Capital Markets to commence a formal farmout process.
“RBC Capital Markets has been engaged to undertake a formal farmout of the Phase 2 Development Area. We look forward to engaging with interested parties and will provide an update to the market at the appropriate time,” Riddle continued.
“Importantly, we also completed the checkerboard of the Beetaloo Basin with DWE, allowing us to prioritise a position of ~400,000 acres… for development of gas to Australia’s East Coast gas market, which is forecast to be short gas by the end of the decade.”
Tamboran also signed a non-binding letter of intent with Arafura Rare Earths Ltd for potential gas supply to its Nolans project and another with Linde Inc. for helium byproduct offtake from its proposed NTLNG development at Middle Arm.
Cash at quarter-end stood at US$25.6 million, increasing to a pro forma US$96.0 million after the PIPE and acreage sale.