Tamboran Resources begins Shenandoah South Pilot Project drilling in Beetaloo Basin

Tamboran Resources Corporation has launched its Shenandoah South Pilot Project drilling program in the Beetaloo Basin, Northern Territory, Australia, beginning with the spudding of the Shenandoah South 2 (SS-2H) well in exploration permit EP 98. Located three miles north of the Shenandoah South 1H (SS-1H) well, the SS-2H well is part of Tamboran’s broader drilling strategy within the Shenandoah South Pilot Project area, where it holds a 47.5% working interest.

Following the completion of SS-2H, Tamboran plans to immediately drill the Shenandoah South 3H (SS-3H) well from the same drilling pad before moving ahead with the stimulation program. Both wells will be drilled using Helmerich & Payne’s (NYSE: HP) super-spec FlexRig Flex 3 rig, targeting the Middle Velkerri B Shale at a depth of approximately 9,910 feet (3,020 meters). Each well is expected to be completed within 30 days.

Advanced Drilling Techniques and Equipment

The SS-2H and SS-3H wells are designed with a 10,000-foot (3,000-meter) horizontal section and will undergo stimulation using up to 60 stages. The advanced equipment for this process includes Liberty Energy’s (NYSE: LBRT) modern frac fleet, recently mobilized from the United States to Australia. This equipment is expected to significantly enhance efficiency and performance, potentially increasing the number of completed stages per day and optimizing gas flows.

Initial flow test results from the SS-2H and SS-3H wells are anticipated in the first quarter of 2025. Once testing is complete, both wells will be suspended as future producers for the proposed 40 million cubic feet per day (MMcf/d) Shenandoah South Pilot Project. Production is expected to begin in the first half of 2026, pending final regulatory and stakeholder approvals.

Largest Drilling Campaign in the Beetaloo Basin

Tamboran’s dual-well program marks the largest single drilling campaign in the Beetaloo Basin to date. Joel Riddle, Managing Director and CEO of Tamboran Resources, expressed enthusiasm about the project, highlighting the company’s strategic partnerships and advanced equipment as key advantages. “We are excited to commence our 2024 Beetaloo Basin drilling program, which includes the longest horizontal wells drilled in the Beetaloo Basin to date,” said Riddle. He added that the modern US completions equipment could significantly boost the stimulation intensity compared to the legacy fleets in Australia.

Strategic Partnerships and Interests in EP 98/117

Tamboran Resources has a substantial stake in the EP 98 and EP 117 areas, operating through its subsidiary Tamboran (B2) Pty Limited, a joint venture with Daly Waters Energy, LP. In EP 98, Tamboran (B2) Pty Limited holds a 77.5% interest, while Falcon Oil and Gas Australia Limited (Falcon) holds 22.5%. In the Shenandoah South Drilling Spacing Units (DSUs), covering 51,200 acres, Tamboran (B2) Pty Limited’s interest is even higher at 95%, with Falcon holding the remaining 5%.

The company is the largest acreage holder and operator in the Beetaloo Sub-basin within the Greater McArthur Basin, Northern Territory, Australia, with approximately 1.9 million net prospective acres. Key assets include a 38.75% working interest and operatorship in EPs 98, 117, and 76, a 100% working interest in EP 136, and a 25% non-operated interest in EP 161.

Outlook and Future Plans

With the new drilling campaign underway, Tamboran Resources aims to showcase the deliverability of the Middle Velkerri B Shale using extended lateral sections and modern completion techniques. The success of this project could lead to significant development in the Beetaloo Basin, potentially unlocking substantial, long-term gas reserves. The strategic involvement of key partners, such as Helmerich & Payne and Liberty Energy, is expected to bolster Tamboran’s position in the region, allowing it to mitigate risks and capitalise on emerging opportunities.

As Tamboran progresses with its Shenandoah South Pilot Project, the energy sector will be closely monitoring the outcome of this ambitious drilling campaign, which could redefine the dynamics of gas exploration and production in the Northern Territory.