Tamboran Drills 10,000-Foot Well, Secures US$59M Cash for Beetaloo Growth
Tamboran Resources reports significant progress in its Beetaloo Basin development, including record-setting drilling, strong cash reserves, and strategic partnerships, positioning itself for first gas in 1H 2026 and exploring new growth avenues.
- Drilled and cemented SS-3H well with a 10,000-foot horizontal section, a Beetaloo Basin record
- Completed SS-2H ST1 well with highest proppant intensity and targeting April 2025 flow test
- Signed MOU with Santos for Darwin LNG Train 2 expansion studies
- Binding agreement with APA Group for Sturt Plateau Pipeline construction, first gas targeted 1H 2026
- Strong cash position of US$59.4 million supports ongoing development and flow testing
Record Drilling Milestones in Beetaloo Basin
Tamboran Resources Corporation (ASX: TBN, NYSE: TBN) has delivered a robust update for its second quarter of fiscal 2025, highlighting a series of operational achievements that underscore its advancing development in Australia's Beetaloo Basin. The company successfully drilled, cased, and cemented the SS-3H well, featuring a 10,000-foot horizontal section, a new benchmark for the basin. This well was completed in just 25 days, marking a 43% improvement in drilling speed compared to its predecessor, SS-2H.
The SS-2H ST1 well also reached a significant milestone, completing 35 stimulation stages with record proppant intensity, targeting an initial production (IP30) flow test in April 2025. These operational strides reflect Tamboran's commitment to optimizing US-style completion techniques and leveraging advanced equipment from Liberty Energy.
Strategic Partnerships and Infrastructure Development
Tamboran has entered into a binding agreement with APA Group to construct, own, and operate the 12-inch Sturt Plateau Pipeline, a critical infrastructure component linking the SS Pilot Project to the existing Amadeus Gas Pipeline network. This pipeline is pivotal for the company’s goal of first gas delivery in the first half of 2026.
Further expanding its strategic footprint, Tamboran signed a non-binding Memorandum of Understanding with Santos Limited to explore technical studies for a potential Darwin LNG Train 2 expansion. This collaboration could integrate with Tamboran’s proposed Northern Territory LNG (NTLNG) project, potentially adding significant liquefied natural gas capacity at the Darwin site.
Financial Position and Future Growth Opportunities
Tamboran’s cash balance stood at a healthy US$59.4 million as of December 31, 2024, bolstered by a US$6.2 million R&D tax credit and proceeds from asset sales and IPO greenshoe options. This strong liquidity position ensures the company is fully funded to achieve its upcoming flow test milestones and supports ongoing development activities.
Beyond upstream operations, Tamboran is exploring innovative growth avenues, including a potential data center hub in the Northern Territory. Leveraging existing fiber optic infrastructure near its Beetaloo Basin assets, the company is engaging with partners to supply natural gas as a reliable and affordable energy source for data centers, positioning itself at the intersection of energy and digital infrastructure growth in the Asia-Pacific region.
Outlook and Upcoming Catalysts
Looking ahead, Tamboran is targeting key flow test results from the SS-2H ST1 well in April 2025 and the SS-3H well by mid-2025. These results will inform the scale of the SS Pilot Project, which aims to deliver approximately 40 million cubic feet per day (MMcf/d) of gas, underpinned by a 15.5-year binding gas supply agreement with the Northern Territory Government.
The company anticipates final approvals and a Final Investment Decision by mid-2025, setting the stage for construction and commissioning activities leading to first gas in early 2026. Tamboran is also evaluating farm-out opportunities to accelerate resource maturation and expand partnerships for subsequent development phases.
Bottom Line?
Tamboran’s operational momentum and strategic collaborations set a promising course for its Beetaloo Basin ambitions, but upcoming flow tests and regulatory milestones will be critical to sustaining investor confidence.
Questions in the middle?
- Will the SS-2H ST1 and SS-3H flow test results meet or exceed Tamboran’s production targets?
- How will the potential Darwin LNG Train 2 expansion with Santos impact Tamboran’s long-term LNG strategy?
- What are the prospects and timelines for commercialising the Northern Territory data center opportunity powered by Tamboran’s gas?