Tamboran’s billion-dollar NT investment powering on at the Beetaloo Basin

An international company’s billion-dollar Northern Territory investment is set to pay off. Read which one.

The milestones continue to flow like gas in the 12-year life of Tamboran Resources’ Beetaloo Basin onshore development.

Last Thursday, the team was preparing to spud the first of three new wells at Tamboran’s Shenandoah South project site, about 60km south of Daly Waters, and on Monday the company lodged impressive gas flow data with the ASX confirming the strength of its Beetaloo reserve.

With more than $1 billion spent proofing the field since 2017, Tamboran has been the biggest single private investor in the Northern Territory over the past decade.

TamboranÕs Shenandoah South prospect near Daly Waters. Picture: Pema Tamang Pakhrin

The ASX report showed the Shenandoah South 2H sidetrack well achieved a Beetaloo Basin record average 60-day initial production flow rate of 6.8 million cubic feet per day over a 5483 foot horizontal stimulated well.

At 12.4 million cubic feet per day, the average flow rate over a normalised 10,000-foot horizontal section “remains inline with an average of more than 11,000 wells in the Marcellus Shale dry gas area with production for over a 12-month period”.

The NT News visited Tamboran’s Shenandoah South field last week for the first time in two years and to quote managing director Joel Riddle, “it’s go time”.

Looking up the rig at Tamboran’a Shenandoah South prospect near Daly Waters. Picture: Pema Tamang Pakhrin

On the red dirt drive off the Stuart Highway, preparations are being made for construction of a workers camp and on-site itself, a huge pad for the LNG production plant is being prepared. As well, APA Group will be on site later this year to build the 37km pipeline to link Tamboran’s field to the Amadeus pipeline, as part of its nine-year agreement to supply 40 terajoules of gas a day to the NT Government to power Channel Island power station.

That agreement commences in 2026, with first production gas expected by mid next year.

“The momentum is clearly happening,” Mr Riddle said.

“I’ve been at this 12 years and it’s been a winding road to this stage. Every large oil and gas project around the world in opening up a new basin has a tipping point, and we’re right there now at that inflection.

“I think that’s why, when you go out to the site, you can feel the energy. The team has put in so much sweat equity here dating back about a decade here, and we’re making steady progress.

“This is where the rubber hits the road and it’s go time for scaling the Beetaloo now. We have all the infrastructure in place including the rigs and frac equipment and we’ll be buying local sand. Now is where the rubber hits the road.”

Tamboran’s drilling manager James Boorman talks with Tamboran team member Nicole Manison. Picture: Pema Tamang Pakhrin

The flow tests are further confirmation early predictions about the strength of the Shenandoah South field were right on point.

“The statement related to the last 60 days for the Shenandoah South 2 well, and we’re

extremely pleased on the result given this is the best flow rate that has ever been conducted in the Beetaloo over 60 days,” Mr Riddle said.

“What’s really encouraged me is the character of the flow test. There is very limited decline, particularly from day 31 to day 60. This is a big moment for the Beetaloo and it gives us the right kind of data that will help us plan for a much larger development in the coming years.”

Speaking just before first spud, Tamboran’s on-site drilling manager James Boorman said the three wells would each be about 3000 metres deep and up to 3500 metres laterally, and spaced about 10 metres apart with a 500 metre separation between each lateral.

Once Tamboran’s vertical drilling team is done, United States-based petroleum specialists Liberty Energy will commence the stimulation phase over several weeks for each of the three new wells.

“After the stimulation, the wells will be tied in with the pipelines for the project,” Mr Boorman said.

Field superintendent Joe Stowell at Tamboran’s Shenandoah South prospect. Picture: Pema Tamang Pakhrin

“The whole drilling process is tried and true, and we just look to get more and more efficient in that process as we drill wells,” he said.

Joe Stowell, field supervisor with Tamboran’s drilling partners Helmerich & Payne, said drilling depths can vary between 100 metres an hour and five metres an hour, depending on sub-surface conditions. One of a number of priorities early in the drill is ensuring the bit doesn’t get stuck.

An H&P veteran who has worked in Wyoming, North Dakota, Colorado, Utah, Pennsylvania and West Texas, he said the Beetaloo is by far his most remote worksite.

“Wyoming, say, we can get some help from somewhere within seven hours,” he said.

“Here you’re looking at getting equipment from Brisbane, Perth or Adelaide and it can take days.”

For the fourth year, the NT News’ annual Future Northern Territory advocacy program returns this month.

Future NT 2025 is supported by major partners Tivan Limited, Charles Darwin University, Tamboran Resources, Santos, Darwin Port and NT Government, minor partners Airport Development Group and Sitzler and supporting partner Mindil Beach Casino Resort.

Tickets are on sale now for the Future NT 2025 economic forum, which will be held at Mindil Beach Casino Resort from 11.30am on Friday, July 18.

Click here for more information and to purchase tickets.

Editor’s note: Tamboran Resoruces paid for the NT News reporter and photographer’s accommodation for the site visit.

Originally published as Tamboran’s billion-dollar NT investment powering on at the Beetaloo Basin