Falcon’s Exit Raises Questions as Tamboran Targets 2026 Gas Production

• Record 7.2 MMcf/d IP30 flow rate from SS-2H ST1 well
• Production performance comparable to Marcellus Shale dry gas wells
• 2025 drilling campaign planned for three 10,000-foot horizontal wells
• Targeting mid-2026 gas sales under 40 MMcf/d Northern Territory GSA
• Falcon Oil & Gas withdraws from 2025 drilling program; costs shared by Tamboran and Daly Waters

Record Flow Rates Signal Commercial Potential

Tamboran Resources Corporation has announced a breakthrough in its Beetaloo Basin operations with the Shenandoah South 2H sidetrack well (SS-2H ST1) delivering an average 30-day initial production (IP30) gas flow rate of 7.2 million cubic feet per day (MMcf/d). This performance, achieved over a 5,483-foot stimulated lateral section, sets a new record for the basin and aligns closely with the average IP30 rates from more than 11,000 wells in the prolific Marcellus Shale dry gas area in the United States.

The well’s steady flow and low decline rates, with an exit rate of 6.7 MMcf/d and wellhead pressure around 910 psi, underscore the reliability and scalability of Tamboran’s operations. These results provide strong evidence supporting the commercial viability of the Beetaloo Basin’s shale gas resources, which Tamboran aims to supply to the Australian East Coast gas market, a market known for premium pricing compared to US benchmarks.

Upcoming Drilling Campaign and Production Plans

Building on this success, Tamboran plans to commence a drilling campaign in the second half of 2025, targeting up to three new wells with 10,000-foot horizontal sections each. These wells will incorporate lessons learned from the SS-2H ST1 and previous wells to optimize production. The campaign is subject to joint venture approval and will be funded equally by Tamboran and Daly Waters Energy, following Falcon Oil & Gas Australia Limited’s decision not to participate.

Once completed, the five wells on the Shenandoah South pad are expected to be connected to the Sturt Plateau Compression Facility, enabling gas delivery under a 40 MMcf/d take-or-pay Gas Sales Agreement with the Northern Territory Government. Production is on track to commence in mid-2026, pending regulatory approvals and favorable weather conditions. This contract is significant for the Northern Territory, given its reliance on gas for power generation.

Strategic Implications and Market Positioning

Tamboran’s CEO, Joel Riddle, emphasized the importance of these results as a foundation for scaling up the Beetaloo Basin’s development. By leveraging US shale expertise and adapting it to Australian conditions, Tamboran aims to unlock a world-scale energy resource. The company’s extensive acreage position, approximately 1.9 million net prospective acres, positions it as the largest operator in the basin, with a strategic foothold for future growth.

However, the path to commercial production is not without challenges. The company must navigate regulatory approvals, stakeholder engagement, and operational risks inherent in shale gas development. Additionally, the withdrawal of Falcon Oil & Gas from the drilling program shifts financial and operational responsibilities, which could impact timelines and cost structures.

Tamboran’s upcoming webcast with analysts will provide further insights into the company’s strategy and operational outlook, offering investors a closer look at how these promising well results translate into long-term value.

Bottom Line?

Tamboran’s record well performance sets a promising course, but execution risks and JV dynamics will shape the next phase.

Questions in the middle?

• How will Falcon Oil & Gas’s withdrawal affect the 2025 drilling campaign’s timing and costs?
• What regulatory or stakeholder hurdles remain before mid-2026 production can commence?
• Can Tamboran sustain or improve well performance across the planned 10,000-foot laterals?