Tamboran Posts First Beetaloo Gas Sales of 1.8 Million Dollars
The Beetaloo Basin developer sold 0.31 billion cubic feet of gas in the quarter ended September 30, 2026, as the Sturt Plateau Compression Facility finished on time and about US$10 million under budget.
Tamboran Resources Corporation (TBN) became the first company, with partner Daly Waters Energy, to sell gas from Australia’s Beetaloo Basin, delivering 0.31 billion cubic feet of net production and generating US$1.8 million of sales revenue in the quarter ended September 30, 2026.
That was the company’s first commercial gas sales from the basin. Production and sales revenue were zero in both the immediately preceding quarter and the year-earlier period. Average gross daily volume was about 24.8 million cubic feet per day, with Tamboran’s net share of production at 51.05%. First cash inflows were received in early November 2026.
The company said Pilot Project sales revenue and direct costs were capitalized to the balance sheet because the Sturt Plateau Compression Facility had not reached practical completion or a commercial operations date under the gas sales agreement, so those sales were not yet reflected in EBITDAX. EBITDAX was a US$14.5 million loss, versus a US$5.7 million loss in the prior quarter.
Gas sales were constrained by Northern Territory nominations. Between September 5 and October 31, 2026, the company said it met 98% of NT Government nominations. Wells experienced short-term interruptions from facility downtime and reduced nominations.
Construction of the SPCF was completed on time and is forecast about US$10 million under budget. Commissioning is targeted for the fourth quarter of 2026. Once the take-or-pay contract with the Northern Territory Government commences, which the company forecasts in the first quarter of 2027, revenue is to be received at 40 terajoules per day regardless of nominations. Managing Director Todd Abbott said the 0.31 Bcf and US$1.8 million figures are expected to increase as commissioning completes and the take-or-pay contract starts.
Long-duration flow testing on the SS2 pad began in September. The SS2-2H ST1 well, after a year shut in, delivered an average rate of 10.2 million cubic feet per day over 720 interrupted hours across about 5,500 feet, versus 7.2 million cubic feet per day in the 2025 test, at a higher wellhead pressure of about 1,100 psi versus 906 psi. Normalized, the 2026 rate was 18.4 million cubic feet per day per 10,000 feet. The company said the well produced minimal water flow back and demonstrates typical deliverability after clean-up.
The SS2-3H and SS2-5H wells delivered IP30 rates of 8.8 and 10.0 million cubic feet per day, respectively, over about 10,250-foot laterals. Both were tied in without soaking and were still producing 200 to 400 barrels per day of stimulation water. Tamboran said high bottomhole pressures have potential to increase deliverability as the wells clean up.
A three-well drilling program on the SS1 pad was completed on budget with about 29,000 feet of combined usable lateral. The SS1-4H and SS1-6H wells were drilled with 9,434 and 9,635 usable lateral feet. The SS1-2H side-track, required after a downhole issue on the original 12,631-foot lateral, was drilled with 9,989 usable lateral feet. Stimulation of the three SS1 wells is planned for the fourth quarter of 2026 and first quarter of 2027, subject to weather.
Cash fell to US$165 million at September 30, 2026 from US$225 million at June 30, 2026, after US$10 million in operating cash outflows and US$58 million of investing outflows, offset by US$7 million of debt proceeds and US$2 million of other items. Pro forma cash including US$15 million of near-term inflows from the acreage sale to Daly Waters Energy, which remain subject to satisfaction of certain conditions precedent, was about US$180 million. Net drawn debt associated with SPCF construction was US$37 million, with US$26 million net to Tamboran remaining undrawn.
Santos commenced a two-well appraisal program in EP 161, where Tamboran holds a 25% non-operated interest. The Jibera South 1H DW1 pilot hole reached total depth and logged Velkerri Shale formations in line with expectations.
The company said it is targeting completion of SPCF commissioning in the fourth quarter of 2026 and stimulation of the SS1 pad wells in the fourth quarter of 2026 and first quarter of 2027.
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