Tamboran expands stake in Beetaloo basin pilot project

Tamboran Resources has increased its working interest in the Shenandoah South pilot project in Australia's Beetaloo basin to a minimum of 47.5%, it said on March 25. This decision comes after Falcon Oil & Gas chose to limit its participation to 5% in the joint venture's second Shenandoah South well pad (SS2) and the two wells in the 2024 drilling programme.

As part of the 2024 drilling programme, two wells will be drilled, creating two drilling spacing units (DSUs) covering 51,200 gross acres around the SS2 well pad. Tamboran and Daly Waters Energy (DWE), as 50/50% owners of Tamboran (B2), have agreed to pick up the non-consent, thereby increasing their interest to 95%.

Tamboran and DWE will carry Falcon for up to A$3.75mn gross (A$1.875mn net) for the first well post June 30, 2024.

The 51,200 gross acre area has the potential to accommodate 23 well pads, which could house approximately 138 wells based on six wells per pad, 3,000-meter lateral sections, and 500-meter well spacings. This infrastructure is expected to support the wells necessary to supply gas for the proposed Shenandoah South pilot project, aiming for a capacity of 40 million ft³/day into the Northern Territory gas market.

"We plan to announce the final investment decision on the proposed pilot project in mid-2024, subject to funding and standard stakeholder and joint venture approvals,” Joel Riddle, CEO of Tamboran Resources Corporation, said. 

Tamboran recently completed its re-domiciliation from Australia to the US. This process involved transferring all ordinary shares to a newly formed corporation, Tamboran US HoldCo, based in Delaware, which now serves as the parent company of the entire Tamboran Group.