Tamboran Drills Ahead: SS-2H Well Shows Productivity Gains, $70M Secured

Strong Operational Momentum in Beetaloo Basin

Tamboran Resources Corporation (ASX: TBN, NYSE: TBN) has delivered a robust update on its 3Q FY25 activities, highlighting significant milestones in its Beetaloo Basin pilot project. The company successfully completed the SS-2H well, a 5,483-foot horizontal well, and has commenced flow testing with promising early results. This well is undergoing an extended "soaking" period, a technique designed to enhance gas productivity by allowing the reservoir to stabilize before production begins.

Initial data suggest that this soaking strategy is yielding material improvements in well productivity, with the SS-2H ST1 well flow testing underway and targeting a 90-day evaluation period. This approach builds on previous successes observed in the basin, where extended shut-in periods have led to notable uplift in gas flow rates.

Funded Growth and Cost Efficiencies

Tamboran has raised US$70 million to support its 2025 and 2026 drilling and stimulation activities, underpinning a fully funded program to drill three additional wells (SS-4H, 5H, and 6H) planned for the second half of 2025. The company is targeting significant cost efficiencies, aiming to reduce drilling times to less than 25 days per well by leveraging optimized well designs, advanced drilling technologies, and batch drilling techniques.

This disciplined approach to capital deployment and operational execution is critical as Tamboran prepares for the proposed Pilot SS Project’s first gas production, targeted for mid-2026. The company’s focus on reducing non-productive time and improving drilling performance reflects a maturing development strategy in the Beetaloo Basin.

Infrastructure on Track for Mid-2026 Gas Delivery

Key infrastructure developments are progressing on schedule, with the Sturt Plateau Pipeline (SPP) and the Sturt Plateau Compression Facility (SPCF) poised to deliver gas to Darwin and broader Northern Territory markets by mid-2026. The pipeline construction is expected to commence in September 2025, following regulatory approvals, while compression and gas dehydration equipment have been delivered and are awaiting installation.

These infrastructure assets are vital to enabling commercial gas flows from the pilot project and supporting Tamboran’s broader development ambitions in the region.

Expansion and Strategic Partnerships

Tamboran is actively evaluating a Phase 1 expansion of its pilot project to meet growing local gas demand, supported by a letter of intent with Arafura Rare Earths for up to 26 million cubic feet per day of additional gas supply over a 10-year term. This potential expansion underscores the strategic importance of the Beetaloo Basin in servicing Northern Territory industrial customers, including emerging rare earths mining operations.

Additionally, Tamboran is progressing a farmout process for its Phase 2 Development Area, encompassing approximately 400,000 acres, with RBC Capital Markets engaged to lead the transaction. This farmout is intended to secure capital and strategic partners to advance the next phase of basin development, targeting sanctioning and production growth beyond the pilot stage.

Looking Ahead

With a strong cash position of US$96 million pro forma following recent capital raises and asset sales, Tamboran is well-positioned to execute its near-term development plans. Upcoming catalysts include the announcement of SS-2H ST1 flow test results in mid-2025, commencement of drilling for the remaining pilot wells, and final investment decisions on infrastructure projects.

As Tamboran advances its Beetaloo Basin strategy, the company’s ability to demonstrate sustained well productivity, secure strategic partnerships, and deliver infrastructure on time will be critical to unlocking the basin’s commercial potential and meeting Australia’s growing gas demand.