Tamboran’s $15M Acreage Sale Puts East Coast Gas Supply Ambitions on the Line
Tamboran Resources has finalized a US$15 million sale of 100,000 acres to Daly Waters Energy, retaining a dominant 1.9 million-acre position in the Beetaloo Basin and setting the stage for its Phase 2 gas development targeting Australia's East Coast market.
- US$15 million acreage sale to Daly Waters Energy for 100,000 acres
- Tamboran retains approximately 1.9 million net prospective acres post-transaction
- 406,693 gross acres designated as Phase 2 Development Area focused on East Coast gas supply
- RBC Capital Markets engaged to facilitate farm-down process post-June 2025 well results
- Initial gas production targeted for mid-2026 amid anticipated East Coast market shortfall
Strategic Acreage Sale Finalized
Tamboran Resources Corporation has taken a significant step in advancing its gas development ambitions in Australia's Beetaloo Basin by signing a binding agreement to sell 100,000 acres of its joint acreage position to Daly Waters Energy (DWE) for US$15 million. This acreage sale, subject to customary regulatory and shareholder approvals, finalizes the checkerboard of joint holdings across exploration permits 76, 98, and 117.
Despite this divestment, Tamboran retains a commanding position with approximately 1.9 million net prospective acres, underscoring its status as the largest acreage holder and operator in the Beetaloo sub-basin. The acreage sale adjusts working interests, with DWE acquiring a non-operating, non-controlling interest, while Tamboran and Falcon Oil and Gas Australia Limited maintain majority stakes and operatorship in key areas.
Focus on Phase 2 Development and East Coast Gas Supply
Tamboran has earmarked 406,693 gross acres as its Phase 2 Development Area, situated immediately north of the existing Pilot Area. This zone is central to Tamboran’s strategy to develop gas resources aimed at supplying Australia's East Coast domestic gas market, which is currently facing anticipated supply shortfalls towards the end of the decade.
CEO Joel Riddle emphasized the importance of this development phase, highlighting ongoing collaboration with DWE on the Shenandoah South Pilot Project and the expectation that funding secured through the acreage sale and farm-down process will support critical drilling activities. Initial production is targeted for mid-2026, contingent on successful well results and regulatory approvals.
Farm-Down Process and Future Growth
To advance its Phase 2 strategy, Tamboran has engaged RBC Capital Markets to manage a farm-down process for the designated acreage. This process is expected to commence following the release of results from the SS-2H ST1 well, anticipated in June 2025. Notably, DWE retains participation rights in any farm-down transaction on the same terms as Tamboran, reflecting the ongoing partnership between the two entities.
The farm-down is designed to bring in additional capital and partners to support the delineation and development of gas resources, thereby underpinning Tamboran’s growth ambitions in the Beetaloo Basin. The company’s substantial acreage position and operator status position it well to capitalize on the growing demand for domestic gas supply in Australia.
Navigating Approvals and Market Dynamics
The transaction and subsequent development activities remain subject to several conditions precedent, including approvals from the Formentera Australia Fund’s Limited Partner Advisory Committee, Tamboran’s shareholders, and relevant regulatory bodies. These approvals will be critical in ensuring the timely progression of Tamboran’s development plans.
Market observers will be watching closely as Tamboran moves towards initial production, especially given the broader context of tightening gas supply on Australia's East Coast. The company’s ability to deliver on its Phase 2 development could have meaningful implications for regional energy security and pricing dynamics.
Bottom Line?
Tamboran’s acreage sale and farm-down set the stage for a pivotal phase in Beetaloo gas development, with mid-2026 production targets signaling a critical juncture for East Coast gas supply.
Questions in the middle?
- Will Tamboran secure all necessary regulatory and shareholder approvals to complete the acreage sale and farm-down?
- How will the farm-down process impact Tamboran’s capital structure and development timeline?
- What are the expected production volumes and commercial terms once Phase 2 development reaches initial production?
