Tamboran Faces Financing and Weather Risks Despite Record Beetaloo Gas Flows

Record Gas Flows Highlight Operational Progress

Tamboran Resources Corporation has reported a new milestone in its Beetaloo Basin development with the SS-2H ST1 well delivering a record IP90 natural gas flow rate of 6.7 million cubic feet per day (MMcf/d). This performance, achieved over a 5,483-foot horizontal section in the Mid Velkerri B Shale, marks a significant improvement over previous wells and underscores the basin’s growing potential as a major gas resource.

Notably, the flow rate increased by approximately 2% during the final 30 days of testing without any downhole intervention, suggesting enhanced fracture conductivity and possible matrix contributions. The well maintained stable flowing tubing pressure, indicating robust reservoir performance and effective well management.

Accelerated Drilling and Infrastructure Development

Tamboran has commenced its first batch drilling program in the Beetaloo Basin, successfully drilling the SS-4H and SS-5H wells to total depth with extended 10,000-foot horizontal sections. The ongoing drilling campaign incorporates advanced technologies such as anti-vibration drilling and improved mud systems, reflecting lessons learned from earlier wells. The SS-6H well is on track for completion in October 2025, with the program running within budget and timeline expectations.

On the infrastructure front, construction of the Sturt Plateau Pipeline (SPP) is underway following the granting of a pipeline license by the Northern Territory Government and completion of a critical "hot tap" connection to the Amadeus Gas Pipeline. The Sturt Plateau Compression Facility (SPCF) is also progressing, with key equipment delivered and installation underway. Both projects are essential to enable gas sales from the proposed SS Pilot Project, targeted for mid-2026.

Strategic Approvals and Financial Position

Tamboran secured historic approvals from Native Title Holders and the Northern Land Council to sell appraisal gas, allowing the company to avoid flaring and align with environmental commitments. The Northern Territory Government’s approval under the BUG Legislation further supports the planned gas sales and infrastructure development.

Financially, Tamboran maintains a strong pro forma cash position of US$71.1 million as of June 30, 2025, bolstered by proceeds from a PIPE transaction and acreage sale. This liquidity underpins the company’s ability to fund the remaining drilling and infrastructure activities required to reach first gas production.

Governance and Outlook

The company has strengthened its board with the appointments of Scott Sheffield, former CEO of Pioneer Natural Resources, and Phillip Pace as non-executive directors, bringing valuable industry experience to support Tamboran’s growth trajectory.

Looking ahead, Tamboran aims to complete drilling and stimulation of remaining pilot wells, finalize pipeline and compression facility construction, and commence gas sales by mid-2026. While the timeline remains subject to weather and financing conditions, the company’s recent operational achievements and approvals provide a solid foundation for advancing its Beetaloo Basin development.