Tamboran Resources Corporation (ASX:TBN, NYSE:TBN, OTC:TBNRL) has received approval from the Northern Territory Government (NTG) to sell appraisal gas from its exploration permits in the Beetaloo Basin under the Beneficial Use of Gas (BUG) legislation. This marks the first approval issued under the new framework and follows consent from Native Title Holders for sales of up to 60 terajoules (TJ) per day over three years.
With this approval, the Beetaloo Joint Venture (BJV) has all necessary clearances to commence sales from the Shenandoah South (SS) Pilot Project. The project is targeting deliveries of up to 40 TJ per day to the NTG under a binding Gas Sales Agreement (GSA) beginning mid-2026, subject to weather conditions.
“The BJV has secured an important milestone, being the first joint venture to secure NTG approval to sell gas under the BUG legislation. This approval will allow the BJV to sell gas to the NTG under a long-term GSA, delivering energy security to Territorians," Tamboran Resources Corporation chairman and interim CEO Richard Stoneburner said.
“The BUG legislation has been a significant initiative undertaken by the Government, which allows for gas volumes to be sold into the market during the exploration and appraisal phase of the project life. Gas that would have historically been flared on site will now be delivered into the local Northern Territory gas market, delivering much needed energy security to the market that is predominantly powered by gas. It will also deliver accelerated royalties to the NTG and Native Title Holders.
“We thank the NTG and Native Title Holders for their support in securing such a historic milestone and we look forward to continuing to work alongside these key stakeholders as we unlock the potential of the Beetaloo Basin.”
Drilling progresses
Development activities are advancing, with drilling of the three remaining wells for plateau production progressing.
The intermediate section of all wells has been completed, and Tamboran is currently drilling the horizontal section in the Mid Velkerri B Shale at the SS-5H well. Stimulation of the SS-4H well is scheduled for the fourth quarter of 2025, followed by a 30-day flow test before connection to the Sturt Plateau Compression Facility (SPCF) for gas delivery.
Tamboran outlines extensive Beetaloo and Darwin landholding
Tamboran, through its subsidiaries, is the largest acreage holder and operator in the Beetaloo Sub-basin within the Greater McArthur Basin, Northern Territory, with about 1.9 million net prospective acres.
The company’s portfolio includes:
- A 47.5% operating interest across 20,309 acres in the proposed northern Pilot Area.
- A 38.75% non-operating interest covering 20,309 acres in the proposed southern Pilot Area.
- A 58.13% operating interest over 406,693 acres in the proposed Phase 2 development area.
- A 67.83% operating interest across 219,030 acres in proposed Retention Licence 10.
- A 77.5% operating interest over 1,487,418 acres across former EPs 76, 98 and 117.
- A 100% working interest and operatorship in EP 136.
- A 25% non-operated working interest in EP 161.
In addition, Tamboran has secured about 420 acres (170 hectares) at the Middle Arm Sustainable Development Precinct in Darwin, the site of its proposed Northern Territory Liquefied Natural Gas (NTLNG) project, where pre-FEED studies are underway with Bechtel Corporation.