Tamboran Delivers First Beetaloo Gas to Northern Territory
The company contracted 40 TJ/d (gross) of Pilot Project gas to the Northern Territory Government at a fixed, CPI-escalated price as it completed the Sturt Plateau Compression Facility about US$9 million under budget.
Tamboran Resources Corporation (TBN) became the first operator to sell gas from the Beetaloo Basin into the Northern Territory network in September 2026, converting a first-sales target it had set for the prior quarter into delivery.
The Australian unconventional gas developer said volumes are currently limited by market demand, with Northern Territory Government nominations expected to rise with seasonal demand. Contracted volume is 40 TJ/d (gross) at a fixed, CPI-escalated price. During the commissioning period, Tamboran and Daly Waters Energy receive 75% of the gas price on interruptible supply; take-or-pay applies to the 40 TJ/d contract quantity once the supply period begins.
Construction of the Sturt Plateau Compression Facility, which has 50 TJ/d capacity, was completed on time and about US$9 million below the P50 forecast, after the plant stood at 88% complete in the prior quarter. Commissioning, focused on control systems and equipment settings, is expected to finish in the fourth quarter of 2026. Drawn infrastructure debt was US$60 million gross to the joint venture at June 30, 2026, or US$30 million net to Tamboran, with US$62 million remaining undrawn. The Northern Territory Government guarantees Tamboran’s 50% share of the facility up to A$75 million.
The Beetaloo Joint Venture completed the largest stimulation campaign in the basin, stimulating SS2-3H, -4H and -5H across 178 stages on more than 30,000 feet of lateral, including a basin record of 12 stages in a day. Tamboran said the zipper-frac campaign delivered a step change in operational efficiency. Locally sourced Beetaloo Red Sand was placed in 10 stages of SS2-5H, with more than 2 million pounds delivered and no impact on pump pressures or fracture initiation. Tracers indicated those stages were producing in line with offset wells. Further testing is planned on at least one SS1 pad well in the December 2026 quarter. A non-binding memorandum of understanding with Liberty Energy covers extending hydraulic fracture stimulation and wireline services.
Drilling on the three-well 2026 program at the SS1 pad began with the Helmerich & Payne FlexRig Flex 3. SS1-4H and SS1-6H reached total depth with 9,329-foot and 9,505-foot usable laterals; SS1-2H was still being drilled. Tamboran said improved bit design, anti-vibration tools and a cooler mud system produced record speed through the Moroak Formation and the lateral section, as the company works toward a target of under 25 days from spud to total depth per well. Three SS1 wells are planned to be tied in late 2026.
A two-well appraisal campaign also started on Santos-operated EP 161 in Beetaloo East, with Jibera South 1H and Newcastle South 1H underway to delineate gas maturation across the eastern depocenter. Stimulation of those wells is targeted for mid-2027. Tamboran holds a 25% interest in EP 161.
The Falcon Oil & Gas acquisition closed in May 2026 after final approval from the Supreme Court of British Columbia. Certain working interests, other than EP 161 and EP 136, remain subject to compulsory acquisition of Falcon Oil & Gas Australia Limited. Tamboran’s net prospective acreage is 2.8 million acres, the largest Beetaloo position among listed peers and the only one covering two depocenters.
Pro forma cash was about US$240 million at June 30, 2026, comprising US$225 million of cash and US$15 million of near-term inflows from the Daly Waters acreage sale, versus about US$298 million pro forma at March 31, 2026. The April 2026 public offer raised US$186 million net of fees. Combined NYSE and ASX market capitalization was about US$1.27 billion at a US$36.28 combined-equivalent share price on September 24, 2026, with enterprise value of US$1.06 billion and implied acreage value of US$377 per acre.
Under US GAAP, some Pilot Project revenue and costs are expected to be capitalized on the balance sheet during commissioning rather than flowing through the income statement. Chief Executive Officer Todd Abbott said the priority is to complete commissioning and production testing, build toward plateau production and the 40 TJ/d contracted supply, and show that well-delivery gains can be repeated.