Tamboran Resources Corp and Formentera Partners have begun initial gas sales from the Shenandoah South Pilot Project, introducing the Beetaloo Basin as a supplier to Australia’s Northern Territory.
“Volumes from the field are expected to ramp up to the full 40 terajoules per day (tJd) contracted to the Northern Territory Government under a long-term take-or-pay agreement by early 2027”, Sydney-based Tamboran said in a press release Tuesday.
“This is an important first step towards establishing the Beetaloo Basin as a reliable, long-term source of natural gas for the Northern Territory and, over time, the broader Australian East Coast market”, said Tamboran chief executive Todd Abbott.
The pilot project consists of five wells in the Northern Pilot Area. It has a declared nameplate capacity of 50 tJd or about 48.5 million cubic feet per day. Gas is processed through the Sturt Plateau Compression Facility, a 50:50 joint venture between Tamboran and Formentera’s Daly Waters Energy LP.
Last year the Northern Territory Government (NTG) approved the sale of appraisal gas from the Pilot Project, following the agreement to buy from the project for an initial term of nine years.
“This is the first approval granted by the NTG through the new BUG [Beneficial Use of Gas] legislation and follows the recent consent from Native Title Holders for the sale of up to 60 tJ per day from the Shenandoah South Pilot Project over a three-year period”, Tamboran said September 1, 2025.
Tamboran and Daly equally own the company that owns a 77.5 percent stake in Beetaloo permits EPs 76, 98 and 117, with the rest previously held by Falcon Oil & Gas Australia Ltd.
Earlier in 2026 Tamboran completed the acquisition of Falcon, consolidating its position in Beetaloo into what it said is a leading 2.8 million net prospective acres.
The Shenandoah South Pilot Project sits in the joint acreage’s Northern Pilot Area. A regulatory filing by Tamboran May 14, 2025 said the partners plan to expand development into the Southern Pilot Area.
Santos’ Return
Separately on Tuesday Santos Ltd announced the spudding of its first appraisal well in Beetaloo.
“The first appraisal well is a critical milestone as we work to prove the commerciality of this world-class gas resource, with our acreage alone having the potential to supply up to 10 Mtpa [million metric tons per annum] LNG and serve the northern and east coast domestic gas markets for 50 years or more”, said Santos managing director and chief executive Kevin Gallagher.
Santos said, “The Beetaloo Sub-basin, part of the greater McArthur Basin, is estimated to contain more than 430 trillion cubic feet of undiscovered gas-in-place on a basin-wide P50 basis, making it one of the most significant onshore gas opportunities in the world”.
Northern Territory Chief Minister Lia Finocchiaro welcomed Santos’ return to drilling in Beetaloo. “The Beetaloo Basin is now delivering first gas to the Territory, and we are seeing the next wave of investment and development activity gathering momentum”, the chief minister said in Santos’ announcement. Santos noted its name was originally an acronym for South Australia Northern Territory Oil Search.
Santos said the recently restarted Darwin LNG “provides a natural launch pad for the next phase of Northern Territory energy development, including carbon management, a potential pipeline connection to the Beetaloo and a second LNG train fed by Beetaloo gas”.
source: rigzone.com