Highlights
• Tamboran Resources Corporation and Santos Limited (ASX: STO) have entered into a nonbinding Memorandum of Understanding (MOU) to undertake technical studies relating to a potential Darwin LNG (DLNG) Train 2 expansion and collaborative work on the jointly owned EP 161 acreage (Santos 75% operator, Tamboran 25%) in the Beetaloo Basin.
• The goal of the studies is to evaluate options for supplying natural gas to a potential expansion train at the existing DLNG facility at Middle Arm. DLNG was approved to a nominal 10 million tonnes of LNG per annum (MTPA), with this expansion opportunity up to ~6 MTPA.
• Santos is the operator of the existing DLNG project with a 43.4% working interest.
• Tamboran and Santos are joint venture partners in the EP 161 acreage which holds ~300,000 acres of Mid Velkerri B Shale at depths below 8,850 feet (~2,700 metres). The region has demonstrated Marcellus Basin-type decline curves from two Tanumbirini wells that were drilled and flow tested in 2022.
• Tamboran remains committed to progressing the development of the proposed NTLNG project at Middle Arm, which is currently undergoing pre-FEED studies with Bechtel Corporation.
• Tamboran and Santos are both committed to supplying natural gas from the Beetaloo Basin into both the Australian domestic gas and international LNG markets.
Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said: 'The MOU between Tamboran and Santos aims to explore commercialization options for the development of DLNG Train 2 utilizing natural gas supplied from the extensive prospective gas resources within the Beetaloo Basin.
'With approximately two million net prospective acres across the Beetaloo Basin, Tamboran holds significant gas resources capable of supplying Northern Territory and Australia’s East Coast gas market for decades. With multiple commercialization pathways via LNG markets at Darwin and Gladstone and the East Coast domestic gas market, Tamboran is well positioned to assess opportunities to accelerate value for our shareholders.
'Tamboran and Santos have been partners in the EP 161 acreage, which hosts the Beetaloo East area, for more than a decade.
'We believe the shale within the deepest Beetaloo East region is on par with some of the high-quality shale qualities we have successfully unlocked in the Shenandoah South area in the Beetaloo West. The Beetaloo East is the location of the Tanumbirini wells, which were drilled and flow tested in 2022 and were the first wells in the Basin to demonstrate Marcellus Basin-style decline curves, albeit with undersized equipment, drilling and stimulation techniques.
'We look forward to advancing discussions with Santos to unlock this significant shale gas resource and contribute to the expansion of DLNG in Darwin. This development has the potential to deliver royalties to the Northern Territory Government while generating jobs and royalties for Native Title Holders in the region.'
EP 161 interests: Santos QNT Pty Ltd 75.0%; Tamboran Resources Corporation 25.0% Total 100.0%.
Source: Tamboran Resources
