Tamboran Secures A$179.8M Financing, Targets 40 TJ/Day Gas Supply by 2026
Tamboran Resources' Beetaloo Joint Venture has reached a Final Investment Decision for the Shenandoah South Pilot Project, setting the stage for first gas sales by mid-2026. The project secures key commercial agreements and financing, marking a pivotal shift from exploration to production.
- Final Investment Decision reached for Shenandoah South Pilot Project
- Gas Sales Agreement secured for 40 TJ/day with Northern Territory Government
- A$179.8 million financing facility arranged for Sturt Plateau Compression Facility
- Drilling and stimulation of wells on track for completion by early Q4 2025
- Project aims to enhance energy security and support regional economic growth
A Milestone for Beetaloo Basin Development
Tamboran Resources Corporation, through its Beetaloo Joint Venture (BJV), has taken a decisive step forward by reaching a Final Investment Decision (FID) for the Shenandoah South Pilot Project. This marks a significant transition from exploration to production, with first gas sales targeted for mid-2026. The FID follows the securing of critical commercial agreements with key stakeholders including the APA Group, the SPCF Trust, Native Title Holders, the Northern Land Council, and the Northern Territory Government.
The project is designed to deliver long-term production testing of multiple wells, which could underpin a large-scale development to supply Australia's East Coast gas market. Tamboran’s Chairman and Interim CEO, Richard Stoneburner, highlighted the potential transformative impact of the Beetaloo Basin, not only for the Northern Territory but for the broader Australian energy landscape.
Commercial Agreements and Financing Secured
Central to the project’s advancement is a Gas Sales Agreement (GSA) with the Northern Territory Government, committing to supply 40 terajoules (TJ) of gas per day at a fixed price escalated annually by the Consumer Price Index. While pricing details remain confidential, this agreement provides a stable revenue foundation for the pilot phase.
Tamboran and its partner Daly Waters Infrastructure (DWI) have also secured a substantial financing facility of up to A$179.8 million to fund the construction of the Sturt Plateau Compression Facility (SPCF). This infrastructure is critical for processing and transporting gas, with the financing backed by guarantees including a significant commitment from the Northern Territory Government.
Operational Progress and Next Steps
Drilling operations are progressing smoothly, with the current three-well program expected to conclude by early Q4 2025. Following this, stimulation and flow testing of the Shenandoah South 4H well will commence in early 2026, ahead of stimulating the remaining wells in the first half of 2026. The project aims to reach plateau production of approximately 40 TJ per day, supporting the gas sales contract and providing valuable data for potential expansion.
Tamboran’s strategy includes leveraging the pilot phase to accelerate royalties to the Northern Territory Government and Native Title Holders, reduce emissions by enabling gas sales instead of flaring, and create economic opportunities for local businesses and communities. The company also plans to continue investing in the Northern Territory’s economy, emphasizing job creation and engagement with Native Title Holders.
Broader Implications for Energy Security
The Shenandoah South Pilot Project arrives at a time when Australia’s East Coast gas market is forecasted to face supply shortfalls later this decade. By advancing production in the Beetaloo Basin, Tamboran aims to contribute to long-term energy security for the region. The project’s success could pave the way for larger developments, potentially transforming the Northern Territory into a significant gas supplier.
While the project carries typical exploration and development risks, including operational uncertainties and the need for continued stakeholder support, the secured agreements and financing provide a strong foundation for progress. Investors and market watchers will be keen to monitor drilling outcomes and the commencement of gas sales as key milestones approach.
Bottom Line?
Tamboran’s FID signals a pivotal shift towards production, with mid-2026 gas sales poised to reshape regional energy dynamics.
Questions in the middle?
- Will the pilot wells achieve the expected plateau production to support long-term contracts?
- How will confidential pricing terms impact Tamboran’s future revenue and profitability?
- What are the risks and timelines associated with scaling up beyond the pilot phase?