Tamboran Resources sets Beetaloo Basin record with 7.2 MMcf/d gas flow from SS-2H ST1 well

Tamboran Resources Corporation (ASX: TBN; NYSE: TBN) announced on June 16, 2025, that its Shenandoah South 2H sidetrack well (SS-2H ST1) delivered a Beetaloo Basin record 30-day initial production (IP30) flow rate of 7.2 million cubic feet per day (MMcf/d). Normalized over a 10,000-foot horizontal section, this equates to 13.2 MMcf/d—on par with performance observed in the Marcellus Shale, one of the most prolific dry gas plays in the United States. This milestone positions Tamboran Resources Corporation as a frontrunner in Australia’s emerging unconventional gas sector, with a clear strategic aim to supply the East Coast market under long-term, CPI-linked contracts.

As the Australian energy sector confronts looming gas shortages and high volatility in LNG-linked pricing, this production data point marks a significant step forward in proving the commercial viability of Beetaloo’s Mid Velkerri B Shale. It also validates Tamboran’s aggressive strategy to import U.S. shale drilling and completion methodologies to the Northern Territory.

How does Tamboran’s SS-2H ST1 performance validate the commercial potential of Beetaloo’s Mid Velkerri B Shale?

The SS-2H ST1 well, located in Exploration Permit 98 (EP98) in the Shenandoah South area of the Beetaloo Sub-basin, achieved a 7.2 MMcf/d IP30 average flow rate over a 5,483-foot lateral after a 35-stage hydraulic fracturing program. This is more than double the IP30 achieved by Tamboran’s earlier SS-1H well, which flowed 3.2 MMcf/d over a 1,640-foot section. When normalized to a full 10,000-foot horizontal length, SS-2H ST1’s IP30 output of 13.2 MMcf/d is consistent with the average performance across over 11,000 wells in the Marcellus dry gas region.

Production remained stable during the 30-day test, with exit rates of 6.7 MMcf/d (12.2 MMcf/d normalized) and flowing wellhead pressures declining steadily from 4,565 psi to 906 psi. Tamboran Resources Corporation indicated that this performance reflects a low-decline production curve—an essential factor for long-term commercial development viability and infrastructure investment planning.

What techniques and reservoir characteristics enabled Tamboran to deliver a record-breaking 30-day flow rate?

Tamboran Resources Corporation employed a high-intensity stimulation design with an average proppant load of 2,706 pounds per foot across the 35 stages. Over 14 million pounds of sand were placed in the lateral section, targeting organic-rich shale within the Mid Velkerri B formation. The vertical depth of the well was 3,017 meters (9,899 feet), and testing was conducted with a staged choke opening from 10/64” to 40/64”.

Gas recovered during testing was primarily dry methane (91.8%), with minor ethane (2.8%), propane (0.17%), and trace levels of butane and heavier hydrocarbons. CO₂ and nitrogen were reported at 3.1% and 2.0% respectively. Water recovery from fracture cleanup averaged 160 barrels per day, with a cumulative total of 21,689 barrels across the 30-day period.

According to Tamboran’s operational update, the results not only validate their use of U.S. shale design principles in Beetaloo but also demonstrate how well productivity scales with longer laterals and higher stimulation density. The data is expected to influence the design of at least four future wells on the Shenandoah South pad.

What is the development outlook for Shenandoah South and how does it align with regional energy demand?

Tamboran Resources Corporation is planning to initiate the next phase of its Shenandoah South drilling campaign in July 2025. This phase includes three new horizontal wells, each with a planned 10,000-foot lateral and up to 60 stimulation stages, subject to final joint venture approval. The SS-3H well is targeted for completion and flow testing by year-end 2025, while the remaining wells will be finalized in the first half of 2026.

All five wells from the Shenandoah South pad are expected to be tied into the Sturt Plateau Compression Facility (SPCF), facilitating up to 40 MMcf/d in contracted gas deliveries to the Northern Territory Government. The supply agreement operates on a take-or-pay basis and is scheduled to begin in mid-2026, contingent upon standard environmental, regulatory, and weather-related approvals.

The significance of this gas supply agreement lies in its role as a stabilizing force for the Northern Territory’s gas-dependent electricity market. With East Coast demand tightening and existing reserves declining, Tamboran’s infrastructure-led model may offer a template for other Beetaloo operators.

What changes in joint venture structure and acreage control have strengthened Tamboran’s operating leverage?

Tamboran Resources Corporation now holds the largest net prospective acreage in the Beetaloo Basin, totaling approximately 1.9 million acres. Key holdings include a 67.83% interest in the proposed Retention License 10 (RL10), a 58.12% operating interest in the Phase 2 Development Area, and a full 100% interest in EP 136. The firm’s ownership footprint expanded following Falcon Oil & Gas Australia’s decision to opt out of the 2025 Shenandoah South campaign. As a result, Daly Waters Energy and Tamboran are equally sharing the capital burden.

These structural changes enhance Tamboran’s control over the drilling schedule, design optimization, and eventual midstream integration. The rebalanced joint venture interests are also expected to reduce strategic delays and consolidate technical decision-making, particularly as the company prepares to scale up toward LNG export feasibility studies.

How are institutional investors responding to Tamboran’s latest Beetaloo results and production trajectory?

Indirect sentiment from energy-focused institutional analysts suggests growing confidence in Tamboran Resources Corporation’s technical execution and resource conversion capabilities. The alignment of SS-2H ST1’s performance with normalized Marcellus results provides a long-awaited validation for capital markets that have long viewed Beetaloo’s resource base as underproven and executionally risky.

The company’s ASX-listed stock (ASX: TBN) rose over 11% to AUD 0.19 on June 16 following the announcement, placing its market capitalization at approximately AUD 552 million. Trading volume exceeded 2.9 million shares, indicating renewed interest from retail and institutional investors alike. Tamboran’s one-year return now stands at 5.56%, with a 52-week trading range between AUD 0.11 and AUD 0.22.

Notably, the Australian energy developer is ranked 28th among 176 companies in its sector and 665th out of 2,322 on the ASX overall, reflecting growing traction with mid-cap investors focused on the domestic energy transition theme.

What strategic milestones are expected next as Tamboran accelerates toward first commercial gas in 2026?

With first gas sales targeted for mid-2026, Tamboran Resources Corporation’s short-term priorities include completing the SS-3H well by December 2025, optimizing future stimulation designs based on SS-2H ST1 learnings, and securing environmental and stakeholder approvals for full pad integration. In parallel, the firm continues pre-FEED work for its Northern Territory LNG (NTLNG) facility at the Middle Arm Sustainable Development Precinct in Darwin. Bechtel Corporation is managing these preliminary engineering efforts.

Longer-term, the ability to move gas volumes into both domestic and Asian markets will hinge on pipeline access and regulatory alignment. Market observers expect that with continued successful flow results and infrastructure tie-ins, Tamboran could be positioned to play a critical role in Australia’s energy export diversification strategy.