Tamboran: Beetaloo a gas powerhouse

Tamboran Resources, which is plotting to commercialise gas production from Beetaloo in the Northern Territory, will begin drilling six new wells in the basin after upgrading its estimates for gas reserves and revealed strong pilot drilling findings.

The acceleration of fracking work in the Beetaloo marks an escalation of the fossil fuel industry in the region, which promises to bring economic benefits to the NT, but it will inflame tensions with those who oppose the industry on environmental and social grounds.

Tamboran, which has positioned itself to capitalise on a looming east coast gas shortfall, said results from its preliminary drilling campaign had shown reserves were higher than it anticipated, while flow results were also strong – which chief executive Joel Riddle said underscored the commercial viability of the project.

“This is a significant milestone around proving commercial viability of the Beetaloo,” Mr Riddle told The Australian.

“We have been working for this for over 10 years as an industry, and we believe this result squarely moves the region out of an exploration phase and squarely into a development phase.”

Despite the drilling results, confirmed by analysts as strong, shares in Tamboran fell nearly 7 per cent.

Mr Riddle, however, said the fall was part of a broad sell-off and shares had rallied strongly in recent weeks as investors positioned for the much-anticipated drilling results.

Mr Riddle said Tamboran would move quickly to drill six wells, producing first gas from drilling in 2025.