Tamboran Resources And Santos Forge Partnership To Explore Darwin LNG Expansion

Tamboran Resources Corporation (NYSE:TBN) is making strides in the natural gas sector through a newly established non-binding Memorandum of Understanding with Santos Limited.

This collaboration aims to conduct technical studies for a potential expansion of the Darwin LNG facility, specifically focusing on the development of Train 2, which could add approximately 6 million tons per annum to the existing capacity of 10 MTPA.

The partnership centers around the jointly owned EP 161 acreage in the Beetaloo Basin, where Santos operates with a 75% interest and Tamboran holds 25%.

This region, encompassing around 300,000 acres of Mid Velkerri B Shale, has shown promising results from previous drilling activities, including the successful flow testing of two Tanumbirini wells in 2022, which demonstrated Marcellus Basin-type decline curves.

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Tamboran’s managing director and CEO, Joel Riddle, emphasized the significance of this MOU, stating it aims to explore commercialization options for utilizing the extensive gas resources in the Beetaloo Basin to support the DLNG expansion.

“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,” Riddle said.

With approximately two million net prospective acres, Tamboran is well-positioned to supply both the Australian domestic gas market and international LNG markets.

The collaboration not only seeks to enhance energy supply but also aims to generate economic benefits for the Northern Territory, including job creation and royalties for local communities.

As discussions progress, Tamboran and Santos are poised to unlock the potential of this significant shale gas resource, contributing to the future of LNG in Australia.

Price Action: TBN shares are trading lower by 0.84% to $21.33 premarket at last check Thursday.

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