Falcon Oil & Gas has announced that approval has been secured by Falcon Oil & Gas Australia's JV partner Tamboran (B2) from the Northern Territory Government for the Beneficial Use of Gas agreement. This approval allows for the sale of appraisal gas from the Shenandoah South Pilot Project.
Points to note:
- The NTG approval allows the BJV partners to sell appraisal gas from EP98 in the Beetaloo sub-basin under the Beneficial Use of Gas (“BUG”) legislation.
- This is the first approval granted by the NTG under the new BUG legislation.
- The BJV partners now hold all necessary approvals to sell gas from the Shenandoah South Pilot Project (“Pilot Project”).
- The BJV partners recently signed the Beneficial Use of Gas agreement (“Agreement”) with the Native Title Holders. The Agreement permits the BJV partners to sell appraisal gas of up to 60 TJ per day from the Pilot Project over a three-year period, subject to the Agreement’s terms.
- The BJV partners have contracted an initial 40 million cubic feet per day (“MMcf/d”) to supply the NTG until mid-2041, which is expected to provide energy security for the Northern Territory.
- This paves the way for construction of the A$140 million Sturt Plateau Compression Facility (“SPCF”). Falcon has no cost exposure in the construction of the
- Commencement of gas sales to the NTG via the SPCF is expected in mid-2026, subject to weather conditions and final stakeholder approvals.
- Work begins this month on the Northern Territory’s first-ever Beetaloo pipeline, with APA Group investing A$70 million to deliver the 37-kilometre Sturt Plateau Pipeline.
2025 Drilling Campaign
- The 2025 drilling campaign continues to progress with the intermediate section of all three wells (S2-1H, S2-3H and S2-5H) successfully drilled. The horizontal section of the S2-5H well in the Amungee B Shale is currently being drilled. The campaign is the first multi-well drilling program implementing batch drilling in the Beetaloo Basin.
- As previously announced, Falcon Australia has no cost exposure to the drilling of these three wells as it opted to reduce its participating interest in the three wells to 0%.
- Stimulation of the S2-4H well, in which Falcon has a 5% interest, is planned for Q4 2025.
Philip O’Quigley, CEO of Falcon commented:
'It is great to see this increased activity in the Beetaloo with not only the batch drilling of three new wells, but also the start of construction by APA on the 37km Sturt Plateau Pipeline and the continuation of the work on the Sturt Plateau Compression Facility by our BJV partner Tamboran (B2) Pty Limited.'
Source: Falcon Oil & Gas
