Highlights
- Tamboran Resources Corporation and Santos Limited (ASX:STO) have entered into a non-binding Memorandum of Understanding (MOU) to undertake technical studies relating to a possible Darwin LNG (DLNG) Train 2 expansion and collaborative work on the permit joint EP 161. (operator Santos 75%, Tamboran 25%) in the Beetaloo basin.
- The objective of the studies is to evaluate supply options for a potential expansion train at the existing DLNG facility at Middle Arm. The DLNG has been approved for a nominal production of 10 million tonnes of LNG per annum (MTPA), with this opportunity to expand up to around 6 MTPA.
- Santos is the operator of the existing DLNG project with a direct stake of 43.4%.
- Tamboran and Santos are joint venture partners on permit EP 161 which contains approximately 300,000 acres of Mid Velkerri B shale at depths below 8,850 feet (~2,700 meters). The region demonstrated Marcellus basin-type decline curves from two Tanumbirini wells that were drilled and flow tested in 2022.
- Tamboran remains committed to advancing the development of the proposed NTLNG project at Middle Arm, which is currently undergoing pre-FEED studies with Bechtel Corporation.
- Both Tamboran and Santos are committed to supplying natural gas from the Beetaloo Basin to the Australian domestic gas and international LNG markets.
NEW YORK–(BUSINESS WIRE)–Joel Riddle, Managing Director and CEO of Tamboran Resources Corporation, said:
The memorandum of understanding between Tamboran and Santos aims to explore commercialization options for the development of DLNG Train 2 using natural gas supplied from the vast potential gas resources of the Beetaloo Basin.
With approximately two million potential net acres in the Beetaloo Basin, Tamboran holds significant gas resources capable of supplying the Northern Territory and East Coast Australian gas market for decades. With multiple routes to market through the Darwin and Gladstone LNG markets and the East Coast National Gas market, Tamboran is well placed to evaluate opportunities to accelerate value for our shareholders.
Tamboran and Santos have been partners on the EP 161 permit, which hosts the Beetaloo East area, for more than a decade.
We believe the shales in the deeper Beetaloo East region are on par with some of the high quality shale grades we have been able to unlock in the southern Shenandoah region of the Beetaloo West region. 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-type decline curves, albeit with equipment, drilling techniques and stimulation undersized.
We look forward to progressing discussions with Santos to unlock this important shale gas resource and contribute to the expansion of DLNG in Darwin. This development has the potential to bring royalties to the Northern Territory Government while generating jobs and royalties for native title holders in the region.
Interests of EP 161
|
Business |
Interest |
|
Santos QNT Pty Ltd1 |
75.0% |
|
Tamboran Resources Company |
25.0% |
|
Total (EPA:) |
100.0% |
1Refers to the operator of the EP 161 surface area.
This announcement has been approved and authorized for publication by Joel Riddle, Managing Director and CEO of Tamboran Resources Corporation.
About Tamboran Resources
Tamboran Resources Corporation (Tamboran or the Company), through its subsidiaries, is the largest acreage holder and operator with approximately 1.9 million potential net acres in the Beetaloo Sub-Basin of the Greater Basin. McArthur, in the Northern Territory of Australia.
Tamboran’s main assets include 38.75% direct interest and operator position in EP 98, 117 and 76, 100% direct interest and operator position in EP 136 and direct interest unexploited 25% in EP 161, all of which are located in the Beetaloo Basin. .
Disclaimer
Tamboran makes no representations, warranties or guarantees as to the accuracy or likelihood of any forward-looking statement or any results expressed or implied in any forward-looking statement. The forward-looking statements contained in this report reflect the expectations expressed as of the date hereof. Except as required by applicable law or the ASX Listing Rules, Tamboran disclaims any obligation or undertaking to publicly update any forward-looking statements or discussions of future financial prospects, whether as a result of new information or future events.
The information contained in this announcement does not take into account the investment objectives, financial situation or particular needs of any recipient and does not constitute financial product advice. Before making an investment decision, recipients of this announcement should consider their own needs and circumstances and, if necessary, seek independent professional advice. To the extent permitted by law, Tamboran and its officers, employees, agents and advisors make no warranties, representations or guarantees as to the accuracy, completeness or reliability of the information contained in this presentation. Furthermore, no member of Tamboran nor its officers, employees, agents or advisors accepts, to the extent permitted by law, liability for any loss, claim, damage, cost or expense arising out of or in connection with the information contained in this ad. .
Note on forward-looking statements
This press release contains forward-looking statements relating to the Company within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act) and Section 27A of the Securities Act of 1933, as amended. . Forward-looking statements reflect the Company’s current expectations and projections regarding future events at that time and therefore involve uncertainty and risks. The words believe, expect, anticipate, will, would, should, could, plan, estimate, intend, predict, potential, continue, and the negative forms of these words and other similar expressions generally identify statements prospective.
It is possible that the Company’s future financial performance may differ from expectations due to various factors, including, but not limited to: our early stage of development with no significant revenue expected before 2026 and our limited operating history; substantial additional capital required for our business plan, which we may not be able to raise on acceptable terms; our strategy to deliver natural gas to the Australian east coast and certain Asian markets is dependent on the construction of additional pipeline capacity, which may not be guaranteed; the absence of proven reserves and the risk that our drilling may not produce natural gas in commercial quantities or quality; the speculative nature of drilling activities, which involve significant costs and may not result in discoveries or additions to our future production or reserves; challenges associated with the importation of US practices and technologies into the Northern Territory, which could affect our operations and growth due to limited local experience; the critical need for timely access to appropriate equipment and infrastructure, which may impact our market access and execution of our business plan; operational complexities and risks inherent in drilling, completion, workover and hydraulic fracturing operations that could harm our business; volatility in natural gas prices and its potential adverse effect on our financial condition and operations; the risks of construction delays, cost overruns and adverse effects on our financial and operational performance associated with interim projects; the potential fundamental impact on our business if our valuations of Beetaloo are materially inaccurate; the concentration of all of our assets and operations in the Beetaloo, making us vulnerable to risks specific to the region; the substantial doubt raised by our recurring operating losses, negative cash flows and cumulative net losses regarding our ability to continue as a going concern; complex laws and regulations that could affect our operational costs and feasibility or result in significant liabilities; community opposition that could cause costly delays and hamper our ability to obtain necessary government approvals; exploration and development activities in the Beetaloo which could result in legal disputes, operational disruption and reputational damage due to native title and heritage issues; the requirement to produce natural gas on a Scope 1 net zero basis from the start of commercial production, with internal operational net zero targets, which may increase our production costs; increased attention to ESG issues and environmental conservation measures that could negatively impact our business operations; risks related to our business structure; risks related to our ordinary shares and CDI; and other risk factors discussed in this report and in the Company’s filings with the Securities and Exchange Commission.
It is not possible to predict or identify all of these factors. All forward-looking statements contained herein are based on certain assumptions and analyzes made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors as it judges appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. Although the Company continually reviews trends and uncertainties affecting its results of operations and financial condition, the Company undertakes no obligation to update or supplement any particular forward-looking statements contained herein.
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Source: Tamboran Resources Company