Tamboran Drills 21,000-Foot Well, Secures US$23M Credit for Pipeline Build

Drilling Milestones in the Beetaloo Basin

Tamboran Resources Corporation has reported substantial progress in its Beetaloo Basin operations during the December 2024 quarter, highlighted by the successful drilling, casing, and cementing of two key wells: Shenandoah South 2H sidetrack (SS-2H ST1) and SS-3H. The SS-3H well notably features a 10,000-foot horizontal section, the longest yet in the Mid Velkerri B Shale, demonstrating Tamboran's advancing technical capabilities in this challenging shale environment.

Drilling efficiency improved markedly, with the SS-3H well completed in just 25 days, 43% faster than the previous SS-2H well. These wells have delivered strong gas shows and confirmed the continuity of high-quality shale formations, reinforcing Tamboran’s confidence in the basin’s commercial potential.

Infrastructure Agreements and Financing

Crucial to the project's commercialisation, Tamboran entered binding agreements with APA Group to construct, own, and operate the 23-mile Sturt Plateau Pipeline (SPP). This pipeline will connect the Shenandoah South Pilot Project to the existing Northern Territory gas network, facilitating gas delivery under a long-term Gas Sales Agreement with the Northern Territory Government. All foundation capacity on the pipeline has been contracted through to 2041, underscoring strong market demand and project viability.

To underpin these infrastructure commitments, Tamboran secured a US$23 million line of credit from Macquarie Bank. This facility will provide guarantees required by APA and environmental bonds, ensuring the project’s financial and regulatory readiness. As of December 31, 2024, Tamboran had drawn approximately US$4 million against this credit line.

Operational Challenges and Next Steps

While stimulation activities commenced in January 2025 using Liberty Energy’s advanced hydraulic horsepower equipment, the company prudently paused completion operations on the SS-3H well after detecting stress in the casing connection. Reinforcement work is scheduled for the first quarter of 2025, with stimulation expected to resume in the second quarter. This delay offers an opportunity to apply learnings from the SS-2H ST1 stimulation campaign, which achieved record proppant intensity and wellhead injection rates.

Initial flow testing (IP30) for SS-2H ST1 is anticipated in April 2025, with SS-3H results expected mid-year. These flow rates will be critical indicators of the wells’ commercial productivity and will shape the timeline for first gas production, targeted for the first half of 2026.

Strategic Collaborations and Environmental Commitment

Tamboran also signed a non-binding Memorandum of Understanding with Santos Limited to explore technical studies for a potential expansion of the Darwin LNG facility. This collaboration could open pathways for Beetaloo gas to access broader markets, complementing Tamboran’s parallel development of the greenfield Northern Territory LNG project.

On the environmental front, Tamboran completed a pioneering 10-month methane satellite monitoring campaign across its Northern Territory assets, recording no methane emissions. This initiative exemplifies the company's commitment to stringent environmental standards and its ambition to achieve net-zero Scope 1 and 2 greenhouse gas emissions from the start of commercial production.

Looking Ahead

With a cash balance of US$59.4 million and no debt, Tamboran is well-positioned to advance its development plans. The company’s focus now turns to completing well stimulations, progressing pipeline and compression facility construction, and delivering initial gas volumes to the Northern Territory market. Success in these areas will not only underpin Tamboran’s growth but also contribute to regional energy security and economic benefits for local communities and Traditional Owners.