Tamboran Resources has agreed to farm down a significant portion of its Beetaloo Basin acreage to Daly Waters Energy, unlocking a $28.5 million staged earn-in and aligning with a strategic joint venture involving Japan’s INPEX Corporation.
- Farm-in Agreement with Formentera Partners to farm down ~10,000 acres
- Staged earn-in valued up to US$28.5 million with off-ramp provisions
- Transaction linked to INPEX-DWE strategic joint venture
- Tamboran retains operatorship and accelerates development timeline
- First gas targeted for Q3 2026, supporting local jobs and energy security
A Strategic Farm-in to Accelerate Beetaloo Development
Tamboran Resources Corporation has taken a pivotal step in advancing its Beetaloo Basin project by entering into a Farm-in Agreement with Formentera Partners, the owner of Daly Waters Energy (DWE). This deal involves farming down approximately 10,000 acres across the Shenandoah North and South Pilot Areas as well as the Beetaloo Central Development Area (BCDA), with a staged earn-in commitment of up to US$28.5 million.
The agreement is closely tied to a recently announced strategic joint venture between DWE and INPEX Corporation, Japan’s largest exploration and production company. INPEX’s involvement, particularly as operator of the nearby Ichthys LNG project in Darwin, lends significant credibility and momentum to the Beetaloo Basin’s development prospects.
Unlocking Acreage Value and Preserving Control
Tamboran’s CEO Todd Abbott highlighted that the transaction validates the premium value of the Beetaloo acreage as it matures from exploration to development. Importantly, Tamboran retains operatorship of its core assets, allowing it to steer the project’s technical and commercial progress while benefiting from the capital injection and risk-sharing that the farm-in provides.
The deal includes structured off-ramp provisions, giving both parties flexibility as the project advances. Phase 1 involves an US$11.6 million carry commitment from DWE towards Tamboran’s future work program in the Pilot Area, with a potential Phase 2 carry of an additional US$11.6 million in the BCDA, subject to DWE’s election to proceed. There is also a milestone carry of up to US$5.3 million, further aligning incentives.
Implications for Commercialisation and Local Impact
The transaction is a crucial step towards commercialising the Beetaloo Basin’s natural gas resources, with first gas targeted in the third quarter of 2026. The partnership with INPEX and DWE not only accelerates development activity but also supports local employment, infrastructure growth, and long-term energy security for the Northern Territory.
Completion of the farm-in is contingent on several conditions, including the finalisation of the DWE-INPEX joint venture and Tamboran’s Falcon acquisition. These interlinked transactions underscore the complexity and strategic nature of the Beetaloo Basin’s development landscape.
Looking Ahead
As Tamboran navigates these milestones, the company is positioned to leverage its substantial acreage holding, approximately 1.9 million net prospective acres, to deliver on its growth ambitions. The farm-in deal not only strengthens Tamboran’s balance sheet but also signals growing confidence from major industry players in the basin’s potential.
Bottom Line?
This farm-in deal marks a critical juncture for Tamboran, setting the stage for accelerated development and potential commercial success in the Beetaloo Basin.
Questions in the middle?
- Will DWE proceed with Phase 2 of the farm-in, unlocking further capital support?
- How will INPEX’s involvement influence the pace and scale of Beetaloo’s commercialisation?
- What are the key regulatory and operational hurdles ahead for Tamboran and its partners?