Tamboran Resources (NYSE: TBN) delivered first gas sales from the Beetaloo Basin to the Northern Territory market during the fourth quarter of fiscal year 2026. The milestone marks a critical transition from exploration to commercial production for the company.

The company strengthened its financial position by raising $186 million net of fees through a public offer, resulting in a cash position of $225 million at quarter-end. Management outlined plans to drill at least six additional wells over the next 18 months to further delineate resources and de-risk the asset base.

Operational Milestones and Infrastructure

Gas has been flowing into the market for 20 days, with current volumes limited by market demand nominations of 25 terajoules per day. The company is currently in the commissioning period of its gas sales agreement. Once the agreement moves into the supply period, take-or-pay provisions will apply to the contracted quantity of 40 terajoules per day.

Construction of the Sturt Plateau compression facility was completed on time and approximately $9 million under budget. Commissioning activities are ongoing, with the facility currently receiving 75% of the gas price due to the interruptible nature of the supply during this phase.

Cost Efficiency and Drilling Performance

Tamboran completed a major stimulation campaign on the SS2 pad using locally sourced Beetaloo red sand. This initiative is expected to reduce well completion costs by approximately $4 million per well compared to imported sand. The campaign utilized the Liberty Energy stimulation fleet, achieving a basin record of 12 stages completed in a single day.

Drilling efficiency also improved, with record speeds through the Merope formation attributed to improved drill bit designs and anti-vibration tools. The company is targeting cycle times of less than 25 days per well, having already achieved a 24-day well in recent operations.

Balance Sheet and Funding Position

The equity raise provides significant financial flexibility for the next phase of development. Tamboran holds $31 million in undrawn debt for funding the Sturt Plateau compression facility. A pro forma cash position of $240 million includes an expected receipt of $15 million from Daly Waters Energy, subject to conditions precedent.

Strategic Outlook

Management is progressing discussions with multiple parties to secure a strategic partner for large-scale development and pipeline infrastructure. The upcoming capital program will focus on de-risking both depocenters in the Beetaloo Basin, including step-out wells in joint ventures with Santos, INPEX, and Daly Waters Energy.

What the Numbers Show

The completion of the Sturt Plateau compression facility $9 million under budget, combined with the potential $4 million per well savings from local sand usage, highlights a dual approach to cost containment: capital expenditure efficiency and operational expenditure reduction. While revenue recognition is deferred due to US GAAP capitalization rules during commissioning, the balance sheet strengthening via the $186 million raise directly supports the capital-intensive drilling phase planned for the next 18 months.

Formentera Partners, Daly Waters Energy (DWE), and joint-venture partner Tamboran Resources (NYSE: TBN) announced the first natural gas sales from the Shenandoah South Pilot Project in Australia’s Beetaloo Basin.

These are the first natural gas molecules ever sold from the Beetaloo. The output will be used to power Darwin, the Northern Territory’s capital and largest city.

Operational Milestone

The gas moves through the Sturt Plateau Compression Facility (SPCF). Commissioning activities for the facility began in late August.

What the Numbers Show

The initiation of sales from a pilot project with a defined nameplate capacity of 48.5 MMcf/d marks the transition from development to revenue-generating operations for the Beetaloo Basin assets. This capacity figure represents the maximum throughput potential of the compression infrastructure currently supporting the initial sales phase.