Tamboran spuds SS1H well in Northern Territory

ASX-listed Tamboran Resources has commenced drilling of the Shenandoah South 1H (SS1H) well in Northern Territory’s Beetaloo basin, it said on August 1.

The well is targeting the deeper Mid-Velkerri "B Shale" in EP 117, with higher pressures and anticipated higher flow rates compared to previous well locations. Drilling is expected to take approximately 45 days, including a pilot hole and 1,000-m horizontal section. The stimulation programme is scheduled to begin in Q4 2023.

Upon completion of the SS1H flow testing, Tamboran and Daly Waters Energy will fulfill the farm-in requirements to earn a 77.5% interest (38.75% each) and operatorship of the EP 76, 98, and 117 permits, with Falcon Oil and Gas Australia holding the remaining 22.5%.

Success at the SS1H well location could support the pilot development investment decision, aiming to utilise Clean Energy Fuels Australia (CEFA) facilities and APA Group pipeline to the Amadeus Gas Pipeline (AGP). Tamboran aims to achieve the first domestic gas sales from the pilot development by the end of 2025.

Tamboran in June signed a framework agreement with the CEFA group of companies, including Clean Energy Fuels Australia Marketing (CEFAM). The agreement grants Tamboran exclusivity over gas compression and liquefaction facilities for potential early production from the Beetaloo basin in Australia.

Tamboran is planning to develop the Northern Territory LNG (NTLNG) project in the state of Northern Territory. The NTLNG development is expected to be supported by the gas sourced from the Beetaloo basin.