A Beetaloo Basin record highlights the start to Tamboran Resources Corporation (ASX:TBN, NYSE:TBN, OTC:TBNRL)’s 2025 drilling campaign. The company has reported initial production (IP60) flow rate from its Shenandoah South 2H sidetrack (SS-2H ST1) well, averaging 6.8 million cubic feet per day (MMcf/d) over a 60-day test period.
The well was drilled within the Mid Velkerri B Shale and delivered consistent flow with low decline. It positions Tamboran’s acreage as commercially promising for dry gas delivery to Australia’s East Coast market.
The company also confirmed the start of its three-well 2025 Shenandoah South Pilot Project, targeting 30,000 feet of combined horizontal drilling. These wells represent the final work commitment under Tamboran’s 40 MMcf/d gas sales agreement with the Northern Territory Government.
“We are pleased to see the SS-2H ST1 well continues to demonstrate a shallow gas rate decline over the last 30 days, delivering an average IP60 flow rate of 6.8 MMcf/d. This result is a new Beetaloo Basin record and is more than double the previous IP60 record set by the SS-1H well in 2024,” Tamboran Resources CEO Joel Riddle said.
Breakdown of the SS-2H ST1 IP60 flow result.
“The normalised rate of 12.4 MMcf/d over a 10,000-foot lateral section aligns with the average of more than 11,000 wells within the Marcellus Shale dry gas area.”
Record flow from SS-2H ST1 well confirms commercial potential
The SS-2H ST1 well achieved a 60-day average production rate of 6.8 MMcf/d across a 1,671-metre (5,483-foot) horizontal section following a 35-stage stimulation program.
This new Beetaloo Basin record doubles the previous IP60 rate set by Tamboran’s SS-1H well in 2024.
Exit rates remained strong at 6.4 MMcf/d with flowing wellhead pressures declining modestly to ~720 psi, indicating a relatively flat decline curve. When normalised to a 10,000-foot lateral, the IP60 result equates to 12.4 MMcf/d, aligning with benchmark performance in the prolific Marcellus Shale dry gas region in the United States.
SS-2H ST1 IP60 flow rate vs. SS-1H and T3H.
Flow tests from Beetaloo Basin wells at Shenandoah South compared to wells drilled in the Marcellus Shale in the dry gas area. SS-2H ST1 aligns with average IP60 rates from more than 11,000 well data set.
Three-well Shenandoah South Pilot underway with FlexRig®
Tamboran has spudded the Shenandoah South 4H well, the first of three planned horizontal wells for 2025. All wells are being drilled from the SS2 pad in Exploration Permit (EP) 98 using the Helmerich & Payne FlexRig® 3, a high-spec US-style rig imported for efficient operations.
The 2025 campaign marks the largest drilling program ever undertaken in the Beetaloo Basin and will fulfil Tamboran’s obligations under its 40 MMcf/d gas sales agreement with the Northern Territory Government. Gas supplied under the agreement will help meet over 90% of the Territory’s electricity needs, which are sourced from gas-fired generation.
Testing of the SS-2H ST1 well recorded 408.2 MMcf of cumulative production over the 60-day period, with flowing wellhead pressures declining from 4,565 psi to 722 psi. The well was completed at a total vertical depth of 3,017 metres and stimulated over a 1,671-metre lateral.
“We have now commenced the largest planned drilling program in the Beetaloo Basin to date, with three wells to be drilled back-to-back with a total combined horizontal section of 30,000 feet,” Riddle said.
“These three wells are the last remaining wells required to be drilled as part of Tamboran’s commitment to deliver 40 MMcf/d to the local market under our gas sales contract with the Northern Territory Government (NTG). With over 90% of electricity in the Northern Territory market supplied from gas fired power generation, our contract with the NTG is expected to play a major role in delivering energy security for all Territorians.”
The fracture stimulation used over 14 million pounds of proppant across 35 stages, achieving proppant concentrations averaging 2,706 pounds per foot. Hydrocarbon content was 91.7% methane with low concentrations of ethane, propane and inert gases. The well continues to produce about 70 barrels of water per day.
Tamboran’s Beetaloo footprint and future plans
Tamboran holds a dominant acreage position in the Beetaloo Sub-basin, operating or holding interests in over 1.9 million net prospective acres. Its key assets include a majority interest in proposed Pilot and Phase 2 development areas, as well as a 100% stake in EP 136.
In parallel with field development, Tamboran is advancing its proposed Northern Territory LNG (NTLNG) project at the Middle Arm Sustainable Development Precinct near Darwin, with pre-FEED studies underway by Bechtel.