Tamboran turns Beetaloo gas milestone into first Northern Territory sales

First Beetaloo Gas Reaches the Northern Territory Network

Tamboran Resources Corporation (NYSE: TBN; ASX:TBN) has crossed the threshold its Beetaloo strategy has been built around: gas from the basin is now flowing into the Northern Territory gas network. The company and joint venture partner Daly Waters Energy began sales in early September, making them the first to deliver Beetaloo gas into the network.

The milestone is meaningful, but the current volumes should not be mistaken for full commercial production. Gas has been flowing for about 20 days while the Sturt Plateau Compression Facility undergoes commissioning, and sales are currently limited by market demand. The Northern Territory Government has nominated 25 terajoules per day as the Territory exits its lower-demand season, against a contracted plateau target of 40 TJ/d.

Tamboran said the wells tied into the facility are performing in line with expectations. Chief executive Todd Abbott said the immediate priority was to complete commissioning and production testing, build towards plateau production and demonstrate that improvements in well delivery can be repeated.

Compression Facility Beats Budget

The Sturt Plateau Compression Facility, owned equally by Tamboran and Daly Waters Infrastructure, was completed in August on schedule and approximately US$9 million below its forecast budget. Commissioning is now focused on tuning control systems and refining equipment settings as the facility processes gas for the domestic market.

The Beetaloo Joint Venture is also evaluating an expansion that could lift facility capacity to as much as 100 TJ/d, with an investment decision planned for mid-2027. That proposal is separate from the current ramp-up to the contracted 40 TJ/d plateau and remains subject to a future decision.

Three-Well Stimulation Sets Basin Record

Tamboran and Daly Waters Energy completed what they described as the Beetaloo Basin’s largest stimulation campaign, treating three 10,000-foot laterals across 178 stages with Liberty Energy’s frac fleet. The campaign averaged 6.7 stimulated stages per day, while pumping operations exceeded 20 hours in a day and reached a record 12 stages in one day.

The joint venture also placed more than two million pounds of locally produced Beetaloo Red Sand across 10 stages in the SS2-5H well. Tracers will be used to compare its performance with imported sand, with further testing planned during the December 2026 quarter. If the local material performs adequately, it could offer a route to lower completion costs, although the announcement does not quantify any saving.

Drilling Pipeline Moves Into Its Next Test

On the SS1 pad, SS1-6H and SS1-4H reached total depth with usable horizontal sections of 9,505 feet and 9,329 feet respectively. SS1-2H was still being drilled at the reporting date, and all three wells are scheduled for stimulation during the December quarter before being tied into the compression facility.

Separately, Santos has started drilling the Jibera South 1H well in EP 161, where Tamboran holds a 25% working interest. The two-well appraisal program is targeting 10,000-foot horizontal sections in the Mid Velkerri B Shale, with each well planned for stimulation and flow testing across up to 60 stages.

Balance Sheet Supports Development Work

Tamboran reported US$225 million in cash at June 30, plus US$15 million of expected near-term inflows from the completion of its acreage sale to Daly Waters Energy. Including its 50% share of restricted cash, the company described total cash and near-term inflows as US$240 million. Net drawn debt stood at US$30 million, with a further US$31 million undrawn.

The balance sheet has to support an expanding operational footprint. Tamboran completed its Falcon Oil & Gas acquisition in May, issuing 6,537,503 common shares to eligible Falcon shareholders, and now reports 2.8 million net prospective acres. The company has also signed a non-binding memorandum with Liberty covering a possible extension of their services relationship, including potential lower-emissions pumping equipment from 2027. Neither the proposed Liberty extension nor the potential compression expansion is yet a binding operating outcome.

The next evidence will come from the numbers rather than the milestone language: sustained daily sales, completion of commissioning, the December stimulation campaign and repeatable production performance from the SS1 and SS2 wells. Until those arrive, first gas is a promising operating proof point, not yet proof of a settled production profile.