Tamboran Resources Ltd (ASX:TBN) has been awarded a grant of up to $7.5 million through the Commonwealth Government's Beetaloo Cooperative Drilling Program with the funds to support drilling of the Maverick 1H (M1H) well within the 'Core' Beetaloo Sub-basin in the Northern Territory.
The company plans to spud the M1H well in mid-2022 and subject to the delivery of commercial flow rates, Tamboran intends to accelerate the Maverick Pilot Development with a target of delivering gas to the Australian domestic market by the end of 2025.
First gas deliveries in 2025
Tamboran managing director and CEO Joel Riddle said: “We are pleased to announce that Sweetpea, a wholly-owned subsidiary of Tamboran, has received an approved grant for up to $7.5 million through the Beetaloo Cooperative Drilling Program initiative provided by the Commonwealth Government of Australia.
“The funding is intended to support up to 25% of the costs of drilling, fracture stimulation and flow testing of the M1H well, limited to $7.5 million, in EP 136, our 100%-owned and operated permit in the ‘Core’ Beetaloo Sub-basin.
“Subject to the delivery of commercial flow rates from the M1H well, Tamboran plans to expedite the proposed Maverick Pilot Development within EP 136, which could target first gas deliveries to the Australian domestic market by the end of calendar year 2025."
Reflects ongoing commitment
Riddle adds: “The award of the grant reflects the support and ongoing commitment of the Commonwealth Government to the development of the Beetaloo Sub-basin as a new source of low carbon dioxide natural gas for Australia to promote jobs, manufacturing and, importantly, national energy security.
“Santos, our joint venture partner and operator of EP 161, successfully drilled the Tanumbirini 2H and 3H wells, which are currently undergoing extended flow testing.
“These wells have already provided valuable information and learnings that have validated our Mid-Velkerri 'B' shale model and details for the design and execution of our drilling program on EP 136 during calendar year 2022.”
About Beetaloo Cooperative Drilling Program
The Beetaloo Cooperative Drilling Program is a key initiative of 'Unlocking the Beetaloo: The Beetaloo Strategic Basin Plan' initiated in January 2021 by the Hon Keith Pitt MP, the Commonwealth’s Minister for Resources and Water, to encourage the industry to accelerate resource exploration and appraisal.
Commenting on his plans, the Minister said: "The Beetaloo Sub-basin's resource potential is a significant opportunity for the economic recovery of the Northern Territory and Australia.
“Industry analysis projects that the Beetaloo development has the potential to create up to 6,000 jobs by 2040. Economic activity could increase between $18.0 billion and $36.8 billion over the same period.
“This investment has the potential to create long-term benefits such as local jobs, generate revenue and provide a springboard for many downstream industries in the Northern Territory."