Tamboran Breaks Records in Beetaloo Basin, Eyes 40 MMcf/d Pilot Project
Tamboran Resources has reported a record IP30 flow rate of 7.2 MMcf/d from its Shenandoah South 2H ST1 well, matching top US shale benchmarks and paving the way for a 40 MMcf/d pilot project by mid-2026.
- Record IP30 flow rate of 7.2 MMcf/d from Shenandoah South 2H ST1 well
- Performance comparable to over 11,000 Marcellus Shale wells
- 2H 2025 drilling program to include SS-4H, 5H, and 6H wells
- Targeting 40 MMcf/d first production from SS Pilot Project by mid-2026
- Local sand supply secured, reducing stimulation costs by ~70%
Record Flow Rates Highlight Reservoir Potential
Tamboran Resources Corporation has announced a significant milestone with its Shenandoah South 2H ST1 well in the Beetaloo Basin, Northern Territory. The well achieved an impressive IP30 flow test rate of 7.2 million cubic feet per day (MMcf/d) over a 5,483-foot horizontal section, which normalizes to 13.2 MMcf/d over 10,000 feet. This performance aligns closely with the average output of more than 11,000 wells in the prolific Marcellus Shale in the United States, underscoring the quality and continuity of the Mid-Velkerri B shale reservoir.
Operational Efficiencies and Technical Advances
The SS-2H ST1 well incorporated an optimized US-style completion design with 35 stimulation stages and a higher proppant intensity compared to previous wells, delivering enhanced fracture conductivity and sustained reservoir pressure. Tamboran has leveraged learnings from earlier wells to improve both well performance and cost efficiency. The company is preparing to commence a second half 2025 drilling program targeting the SS-4H, 5H, and 6H wells, aiming to replicate and build upon this success.
Cost Reductions Through Local Supply Chain Development
In a strategic move to reduce operational costs, Tamboran has secured a local sand supplier in the Northern Territory for its stimulation program, slashing sand costs by approximately 70% compared to 2024 imported sand prices. Discussions are underway with potential partners to develop the first local sand mine in the Beetaloo Basin by 2026, which could further reduce costs and improve project economics.
Pathway to Pilot Project Production
Tamboran is targeting first gas sales of 40 MMcf/d (gross) from the Shenandoah South Pilot Project by mid-2026, subject to final regulatory and stakeholder approvals. The upcoming drilling and stimulation of multiple wells in late 2025 and early 2026 will be critical to achieving this milestone. The company’s approach emphasizes batch drilling, optimized drilling tools, and advanced fracturing techniques to enhance efficiency and reduce non-productive time.
Looking Ahead
While the results to date are promising, Tamboran’s forward-looking statements caution that actual outcomes depend on regulatory approvals, weather conditions, and operational execution. Nevertheless, the strong reservoir performance and cost-saving initiatives position the company well to advance its development plans in the Beetaloo Basin, a region increasingly recognized for its shale gas potential.
Bottom Line?
Tamboran’s record flow rates and cost-cutting measures set the stage for a pivotal 2025 drilling campaign and a potential production leap in 2026.
Questions in the middle?
- Will the upcoming SS-4H, 5H, and 6H wells replicate or exceed the SS-2H ST1 well’s performance?
- How will regulatory and stakeholder approvals impact the timeline for the SS Pilot Project’s first gas sales?
- What are the long-term implications of local sand mining on project economics and regional supply chains?
