Tamboran Resources’ Shenandoah South 2H sidetrack well has achieved a record 90-day average gas flow rate in the Beetaloo Basin, maintaining stable production and advancing the company’s multi-well drilling campaign.
- SS-2H ST1 well delivers record 6.7 MMcf/d average IP90 flow rate
- Stable and slightly increasing gas flow over final 30 days without intervention
- Well suspended ahead of planned mid-2026 gas sales to Northern Territory Government
- Multi-well drilling campaign progressing with intermediate and horizontal sections
- Results support Tamboran’s acreage farm down and East Coast gas supply strategy
Record-Breaking Production in the Beetaloo Basin
Tamboran Resources Corporation has announced a significant milestone for its Shenandoah South 2H sidetrack (SS-2H ST1) well, which has delivered a record average initial 90-day production (IP90) flow rate of 6.7 million cubic feet per day (MMcf/d) of dry gas. This achievement sets a new benchmark for the Beetaloo Basin, a key unconventional gas play in Australia’s Northern Territory.
What makes this result particularly noteworthy is the well’s stable performance over the final 30-day period of testing. Gas flow rates actually increased by approximately 2% without any downhole intervention, maintaining a consistent choke size. At the end of the 90-day test, the well was flowing at 6.5 MMcf/d with only a minor 3% decline from the 60-day mark, suggesting strong reservoir connectivity and sustained productivity.
Strategic Development and Future Gas Sales
Following the successful flow test, Tamboran has suspended the SS-2H ST1 well in preparation for the commencement of gas sales to the Northern Territory Government via the Sturt Plateau Compression Facility (SPCF), targeted for mid-2026. This marks a critical step towards commercialising the resource and supplying gas to meet anticipated demand on Australia’s East Coast.
Tamboran is concurrently advancing a multi-well drilling campaign at Shenandoah South, employing batch drilling techniques to enhance operational efficiency. The intermediate sections of two additional wells (SS-5H and SS-6H) have been drilled, with the rig currently working on the SS-4H well. The company plans to drill the 10,000-foot horizontal sections of these wells later this year, aiming to replicate and build upon the strong performance demonstrated by SS-2H ST1.
Implications for the Beetaloo Basin and East Coast Gas Market
Chairman and Interim CEO Richard Stoneburner highlighted the uniqueness of the SS-2H ST1 well’s performance, noting that the increasing flow rates without intervention indicate enhanced matrix connectivity from the stimulation program. This data point is crucial as Tamboran prepares to stimulate longer horizontal sections, potentially unlocking greater recovery from the Velkerri B Shale formation.
The results also bolster Tamboran’s strategy to farm down approximately 400,000 acres surrounding Shenandoah South. This acreage is expected to be developed over coming years to help address the emerging gas supply shortfall on the East Coast, a market facing tightening supply dynamics amid growing demand and energy transition pressures.
Technical Highlights and Operational Details
The SS-2H ST1 well was drilled in Exploration Permit 98 and stimulated with a 35-stage fracture program over a 5,483-foot horizontal lateral within the Mid Velkerri B Shale. The well produced dry gas with methane content exceeding 91%, alongside minor amounts of ethane and other hydrocarbons. Over the 90-day test, the wellhead pressure declined from 4,565 psi to around 700 psi, with choke sizes adjusted early in the test before stabilising at 44/64".
These technical parameters align the SS-2H ST1 well’s performance with some of the more prolific shale gas plays globally, such as the Marcellus Shale in the United States, underscoring the Beetaloo Basin’s emerging significance as a domestic gas resource.
Bottom Line?
Tamboran’s record-setting well performance and advancing drilling program position it well to meet growing East Coast gas demand, but execution risks and regulatory approvals remain key hurdles ahead.
Questions in the middle?
- How will the upcoming multi-well drilling results compare to the SS-2H ST1 benchmark?
- What are the key regulatory and stakeholder approvals needed to finalise gas sales via the SPCF?
- How might the farm down of 400,000 acres impact Tamboran’s capital structure and project timelines?