Tamboran ’excited’ by imminent drilling results as Beetaloo development accelerates

The latest drilling results from its Beetaloo development look set to boost Tamboran’s hopes of becoming a major gas supplier to Australia’s east coast.

Tamboran Resources, which is plotting to become a major supplier of gas to Australia’s east coast and of LNG to regional neighbours, is excited about soon-to-be-released drilling results, the company’s chief executive said, hinting the Northern Territory resource project that has emerged as a lightning rod for opponents is edging closer to realisation.

Strong drilling results from Tamboran’s latest exploration campaign will bolster confidence that the Beetaloo region could emerge as a major source of gas in Australia, relieving tight domestic supplies. But it will exacerbate environmental opposition to unlocking the region for fossil fuel exploitation.

Tamboran last year began its initial drilling campaign, with chief executive Joel Riddle hinting that the market would be pleased by the round of results.

“We have well tests that we are going to be announcing in late February. We are encouraged and excited about the pending results of that well. This has clearly shown that the geology of the area that we have selected and targeting first development has the best resource potential in all of the Beetaloo. It has the biggest and highest pressure gaps in all of the Basin,” Mr Riddle said.

Strong results will bolster confidence within Tamboran and supporters of extracting gas from the NT.

Tamboran expects to produce first gas from drilling in 2025, which will be sold to Origin Energy under an existing agreement struck when Australia’s largest electricity and gas retailer sold the exploration rights.

But Tamboran has larger plans in place, which it said will position it as a major player in Australia’s domestic energy market.

Tamboran last year said it had entered into an agreement with APA Group to explore developing a pipeline to transport gas north to Darwin to be readied for LNG export, and east for use in the domestic market.

A Tamboran rig at the Shenandoah South field.

A final investment decision on the largest project has been earmarked for 2025 or 2026 – subject to the pilot drilling results.

Mr Riddle said the company expects a pipeline to be in place by late 2027 or early 2028, with first gas from the project expected around 2028.

Expanded production from Tamboran would be certainly be welcomed by Australia’s energy industry, which is increasingly alarmed by the prospect of a looming shortfall in supplies,

Australia’s east coast could experience a material shortfall in supplies as soon as 2025 as traditional sources run low. New developments are struggling to secure regulatory approvals amid local community opposition.

The Australian Consumer and Competition Commission has said that by 2034, the long-forecast shortfall in supplies on the east coast was expected to be as large as 300 petajoules, equating to more than half existing east coast demand.

This has stoked deep divisions about potential remedies. Some, such as billionaire Andrew Forrest, have proposed LNG import terminals that could see gas imported into the east coast, while others have said Australia should prioritise reducing gas usage.

Gas, however, fulfils a major role for Australia’s manufacturers, many of whom are unable to switch to renewables. Gas is also critical as a supplementally fuel source for renewable energy.

There is also uncertainty about gas from the NT. The Northern Territory last year gave the green light to fracking in the Beetaloo. The move has been heralded by supporters as potentially lucrative through royalties and safeguarding domestic supplies – but Tamboran has now emerged as a lightning rod for opponents.

Environmentalists have vowed to oppose new developments, and they have found success in delaying new projects through legal action.

The Central Australian Frack Free Alliance last year challenged the decision from the NT government to approve the drilling licence of Tamboran, arguing that the Minister failed to consider the environmental impacts of future gas projects.

Mr Riddle said he was extremely confident that Tamboran would prevail and maintain its licences.

“This is part of doing business in the new world that we live in,” Mr Riddle said.

“One of the core competencies that we have as a company is to defend these ludicrous lawsuits. I think for the modern 21st century oil and gas company to survive, you need to understand your opponent and also understand their tactics. We are getting down the learning curve quickly as to how to overcome legal challenges.”