The Beetaloo Joint Venture (BJV) has made a Final Investment Decision (FID) on the Shenandoah South Pilot Project in the Northern Territory, paving the way for first gas sales from mid-2026.
The decision follows execution of key commercial agreements with APA Group and the SPCF Trust, alongside prior approvals secured through agreements with Native Title Holders, the Northern Land Council and the Northern Territory government under Beneficial Use of Gas (BUG) legislation.
Tamboran Resources and Daly Waters Infrastructure, LP (DWI) have also secured up to $179.8 million (around US$118 million) through a three-tranche financing facility arranged with a consortium of lenders.
The funding will support the construction of the Sturt Plateau Compression Facility (SPCF), which is central to enabling gas sales from the Pilot Project.
Tamboran confirmed it will be able to cover its share of upstream drilling, stimulation of the remaining wells, and SPCF construction, subject to receipt of proceeds from its US$15 million acreage sale to DWE and a forthcoming R&D tax incentive claim for FY25.
The Shenandoah South Pilot Project is designed to demonstrate long-term production from multiple wells and provide additional resource delineation, potentially leading to sanctioning of a full-scale development targeting the East Coast gas market.
Tamboran expects the current three-well drilling program to conclude in early fourth quarter 2025, with flow testing of the Shenandoah South 4H (SS-4H) well over a 30-day period scheduled in early 2026.
Further stimulation of three additional wells is planned during the first half of 2026 after the wet season, ahead of the commencement of gas sales by mid-2026.
Tamboran Resources Chairman and Interim CEO, Richard Stoneburner, described the FID as a landmark step.
“The decision to sanction the Pilot Project is a major milestone in the history of Tamboran Resources, the Beetaloo Basin and the Northern Territory,” said Stoneburner.
“As Tamboran moves from an explorer to first gas sales, I would like to thank all those who have made this possible.”
He noted the contribution of Native Title Holders, pastoralists, government stakeholders and shareholders in advancing the project, and highlighted the potential for the Beetaloo Basin to play a transformative role for both the Territory and the national energy landscape.
Stoneburner emphasised that the underpinning Gas Sales Agreement is expected to bolster energy security for Northern Territory consumers while creating opportunities for businesses and service providers within the region.
He added that the project would contribute royalties to the Territory government and financial benefits to Native Title Holders.
In addition to strengthening supply to the domestic market, the company reaffirmed its intention to expand its on-the-ground presence in the Northern Territory, create jobs, and engage with local businesses.
The project rollout also aligns with forecasts by the ACCC and AEMO of potential gas shortfalls later this decade, positioning the Beetaloo development as a significant contributor to national energy security.
Stoneburner said Tamboran’s drilling program remained on track, with long-term production testing of the five pilot wells expected to deliver initial gas sales in mid-2026.
