Tamboran is set to drill two new Beetaloo wells as NT gas supply deal takes off

Two new wells will be drilled at a key Beetaloo Basin prospect as part of the Territory’s new gas supply deal. Read what’s planned.

Back in Australia after two months in the United States steering through its initial public offering, Tamboran chief executive Joel Riddle is now focused on expanding the company’s footprint at the Beetaloo Sub-basin.

The IPO targeted raising US$75m to fund ongoing drilling activities for the Shenandoah South pilot project at the Beetaloo.

Backed by a US$20m contribution from existing shareholders Sheffield Holdings and Liberty Energy, drilling at Shenandoah South will resume in coming weeks in what chief executive Joel Riddle expects will be a prolific period for the company as it prepares for first production in Q1 2026.

He said the company’s primary target is honouring the agreement it inked with the NT government in April to provide 40 terajoules of gas a day from 2026 to power the Territory’s electricity generation.

Tamboran Resources chief executive Joel Riddle at Manly. John Feder/The Australian.

“The successful IPO was a big deal for the company and the Northern Territory and provides us with access to deep capital markets in the United States,” Mr Riddle said.

“Feedback from the market was incredibly positive and there was strong support for funding large gas developments internationally as a key energy source to support critical minerals and to replace coal. It won’t just fund the upcoming project but will be key to underpinning larger developments in the Beetaloo.”

With the giant Helmerich & Payne rig on location at Shenandoah South, it’s expected Tamboran will spud two wells in coming weeks to commence the company’s 2024 drilling program.

He said the 3000m vertical and horizontal wells will be among the biggest onshore wells drilled in Australia for decades.

April test results released by Tamboran showed Shenandoah South’s 90-day flow test rates at 5.8m cubic feet per day – about 65 per cent higher than previously reported at other Beetaloo Basin wells.

In partnership with Liberty Energy, he said state-of-the-art mine completions equipment will replace the “vintage” equipment Tamboran used to stimulate its first Beetaloo wells.

“The equipment Liberty is bringing over will have double the amount of pumps, from 16 to 32 pumps, and have over three-times the horsepower,” Mr Riddle said. “This will give us capacity to deliver optimised simulation we believe will lead to higher flow rates and reduce costs.

Tamboran Resources Chief Executive Joel Riddle visits the Weddlell Power Station as Energy company Tamboran Resources and the NT government have signed a 15-year binding gas sales agreement to supply almost two-thirds of the Territory’s current gas needs from the Beetaloo Sub-Basin. Picture: Pema Tamang Pakhrin

“This is part of our strategy to import US shale technology into Australia. In the Beetaloo, previous operators have used rigs designed for coal seam gas and shallower conventional targets so having modern shale drilling equipment is a game changer delivering low costs and improved efficiencies.”

With the two new anticipated Shenandoah South wells adding to the existing well, another four will be drilled in 2025 to bring the total number at Shenandoah to seven.

“The first two wells have the potential to mature reserves to support larger developments in the Territory,” he said.

“Priority one is to shore up energy security in the Northern Territory by delivering 40TJs a day, priority two is to deliver large gas volumes to the east coast to shore-up their energy security and we’re also prioritising advancing the LNG project at Middle Arm.”

He said Tamboran could eventually provide gas to other Middle Arm proponents for upcoming developments at the proposed downstream manufacturing precinct.

“We want to be helpful and provide gas to uplift other projects at Middle Arm, which all require power, and our gas could be used to provide a foundation for projects around power supply.”