Shenandoah South Pilot Project reaches FID
| Stock | Tamboran Resources Corporation (TBN.ASX) |
|---|---|
| Release Time | 30 Sep 2025, 9:01 a.m. |
| Price Sensitive | Yes |
Tamboran Reaches FID for Shenandoah South Pilot Project
- Beetaloo Joint Venture makes Final Investment Decision for Shenandoah South Pilot Project
- Project on track for first gas sales from mid-2026
- Tamboran and Daly Waters Infrastructure secure up to A$179.8 million financing facility
Tamboran Resources Corporation has announced that the Beetaloo Joint Venture (BJV) has made a Final Investment Decision (FID) for the Shenandoah South Pilot Project, which is currently on track to commence first gas sales from mid-2026. The decision by the BJV to take FID follows the execution of key commercial documents with APA Group and the SPCF Trust, as well as the signing of agreements with Native Title Holders, the Northern Land Council and the Northern Territory Government to secure approvals required to commence sales of appraisal gas under the Beneficial Use of Gas (BUG) legislation. Tamboran and Daly Waters Infrastructure, LP (DWI) have also secured up to A$179.8 million (~US$118 million) via a three-tranche financing facility with a consortium of lenders for the construction of the Sturt Plateau Compression Facility (SPCF). Tamboran is now in a position to fund its share of the upstream drilling and stimulation of the remaining Pilot Project wells required to reach plateau production and construction of the SPCF. The Pilot Project has been designed to provide long-term production testing of multiple wells that has, alongside additional resource delineation, the potential to sanction a large-scale development to the East Coast gas market.
Tamboran expects to complete the current three well drilling program in early 4Q 2025. This will be followed by the stimulation of the Shenandoah South 4H (SS-4H) well, which is planned to be flow tested over 30-days in early 2026. The remaining three wells are expected to be stimulated in 1H 2026 ahead of commencement of gas sales in mid-2026.
The Pilot Project is expected to deliver long-term production testing of Beetaloo Basin wells, energy security to the Northern Territory, reduced emissions by allowing sale of gas rather than flaring, accelerated royalties to the Northern Territory Government and Native Title Holders, and a pathway to cost reduction.