Tamboran Resources Corporation (ASX:TBN, NYSE:TBN, OTC:TBNRL) has secured a major milestone with its Beetaloo Joint Venture (BJV) approving a Final Investment Decision (FID) for the Shenandoah South Pilot Project, setting the stage for first gas sales from mid-2026.
The decision follows a string of key approvals and agreements, including deals with Native Title Holders, the Northern Land Council and the Northern Territory Government under the Beneficial Use of Gas legislation. Tamboran has also locked in a Gas Sales Agreement with the NT Government to supply 40 terajoules per day (TJ/d) at a fixed, Consumer Price Index-linked price.
Financing secured for infrastructure
To support the development, Tamboran and Daly Waters Infrastructure LP have arranged up to A$179.8 million (US$118 million) in financing from a consortium of lenders for construction of the Sturt Plateau Compression Facility (SPCF). The facility is central to delivering sales volumes into the Amadeus Gas Pipeline under a transportation agreement with APA Group (ASX:APA).
The debt package, backed in part by an NT Government guarantee, will be used to fund flowlines, compressors and engineering costs. Tamboran says the arrangement positions it to fund its share of upstream drilling and stimulation, alongside proceeds expected from a recent acreage sale and FY25 R&D tax incentives.
Drilling on track
Tamboran is currently running a three-well program at Shenandoah South, with drilling set to finish in early 4Q 2025. The SS-4H well will be stimulated and flow tested over 30 days in early 2026, while the remaining wells are scheduled for completion in the first half of 2026 after the wet season.
Long-term testing of five wells — SS-2H ST1, -3H, -4H, -5H and -6H — is expected to underpin initial gas sales by mid-2026 at plateau production of around 40 TJ/d (~39 million cubic feet per day).
Transformational milestone
Tamboran chairman and interim CEO Richard Stoneburner described the FID as a turning point for the company and the region.
“The decision to sanction the Pilot Project is a major milestone in the history of Tamboran Resources, the Beetaloo Basin and the Northern Territory,” he said.
“This project is expected to deliver energy security to Territorians and provides a pathway to potentially securing long-term energy security for Australia’s East Coast gas market, which is anticipated by both the ACCC [Australian Competition & Consumer Commission] and AEMO [Australian Energy Market Operator] to be in shortfall later this decade.”
Stoneburner added that the project would also accelerate royalties for the NT Government and Native Title Holders, while creating jobs and opportunities for local businesses.
Pathway to larger development
The Shenandoah South Pilot Project has been designed not only to test long-term production but also to pave the way for full-scale Beetaloo Basin development.
Last week, Tamboran reported record flow rates from the Beetaloo and confirmed the launch of its largest drilling program to date, underscoring momentum towards its goal of becoming a key supplier to the East Coast gas market.
Read more: Tamboran Resources reports record Beetaloo flows, kicks off largest drilling program