Santos plans to drill up to four wells on its Beetaloo basin shale gas acreage (Block EP 161) this year, aiming for a final investment decision on the onshore Tanumbirini project by early 2029. The programme includes two appraisal wells, Tanumbirini-3 and Tanumbirini-4, scheduled for the second half of the year. Santos has already booked 1.4 trillion cubic feet of gross best estimate contingent resources from three previously drilled wells.

Development Wells and LNG Backfill Strategy

Further development involves two 10,000-foot horizontal wells, Jibera South-1H and Newcastle South-1H, in the eastern part of EP 161. Partner Tamboran Resources stated these wells will be drilled in the third quarter and fractured with up to 60 stages, followed by a 12-month flow-test. This development is expected to backfill Santos's Darwin and Gladstone LNG projects, targeting first backfill gas by 2033. The co-venturers have contracted Ensign Rig 971 for the drilling campaign.

Partnership and Broader Beetaloo Activity

Santos operates EP 161 with a 75% interest, with Tamboran holding 25%. The partners have an agreement to evaluate a potential second train at the Darwin LNG project. Tamboran characterizes the Beetaloo basin as being at an inflection point similar to the early days of US shale, anticipating tremendous growth over the next 12-18 months.

Tamboran's Funding and Operational Plans

Tamboran launched a US$198 million fundraising effort to support its operations. The funds are designated for additional drilling in the Shenandoah South (SS) pilot area, resource delineation in the Orion acreage and Beetaloo Central Development Area, and the drilling in EP 161. The company is targeting first gas sales from its operated SS pilot project in the third quarter of 2026 to the Northern Territory government.

Recent Drilling Results and Near-Term Schedule

Tamboran reported a record 20-day initial production rate of 10.3 million cubic feet per day from its SS-6H well, comparing it favorably to average Marcellus shale wells. A stimulation campaign for wells SS-3H, SS-4H, and SS-5H is planned to start in the second quarter, with two additional wells (SS-7H and SS-8H) in the Southern pilot area planned by the end of June.