Tamboran Begins First Gas Sales from Beetaloo Basin
Tamboran Resources Corporation (NYSE:TBN) has initiated its first gas sales from the Shenandoah South Pilot Project in Australia's Northern Territory, marking a significant operational milestone. The company and Daly Waters Energy have begun delivering natural gas into the regional network under a long-term take-or-pay agreement with the Northern Territory Government. This contract is expected to provide 38.8 million cubic feet per day by early 2027. The project's Sturt Plateau Compression Facility has an overall capacity of approximately 48.5 million cubic feet per day, and initial deliveries are helping reduce uncertainty about the physical connection between production and market access. The fixed-price agreement with annual CPI-linked adjustments offers Tamboran more revenue visibility than spot-market reliance. However, challenges remain in sustaining output levels over time, as additional wells will be needed to maintain plateau production. Financing constraints also pose a risk due to an upcoming balloon payment on the project's funding facility.
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