Someone's drilling... Beetaloo is now a proven gas powerhouse, Tamboran says as it readies expansionTHEAUSTRALIAN.COM.AU04:57Gas remains a ‘key part’ of Australia’s energy mixTamboran Resources CEO Joel Riddle says gas remains a “key part” of Australia’s energy mix. “Gas is a huge… part of the economy … and the issue that we see coming down the pipe in the next few years is a dramatic shortfall in gas supply,” he told MoreTamboran Resources boss Joel Riddle.By COLIN PACKHAMBUSINESS REPORTER6:34PM FEBRUARY 26, 202413 COMMENTSTamboran Resources, which is plotting to commercialise gas production from Beetaloo in the Northern Territory, will begin drilling six new wells in the region after upgrading its estimates for gas reserves and revealed strong pilot drilling findings.The acceleration of fracking work in the Beetaloo marks an escalation of the fossil fuel industry in the region, which promises to bring economic benefits to the NT, but it will inflame tensions with opponents who oppose the industry on environmental and social grounds.Tamboran, which has positioned itself to capitalise on a looming east coast gas shortfall, said results from its preliminary drilling campaign has shown that reserves are higher than it previously anticipated, while flow results were also strong – which chief executive Joel Riddle said underscores the commercial viability of the project.“This is a significant milestone around proving commercial viability of the Beetaloo,” Mr Riddle told The Australian.“We have been working for this for over 10 years as an industry, and we believe this result squarely moves the region out of an exploration phase and squarely into a development phase.”Despite the drilling results, confirmed by analysts as strong, shares in Tamboran fell nearly 7 per cent. Mr Riddle, however, said the fall was part of a broad sell-off and shares had rallied strongly in recent weeks as investors positioned for the much-anticipated drilling results.READ MORE: Tamboran ‘excited’ by Beetaloo progress | Underwhelming Beetaloo results test Tamboran’s plans | Tamboran plans Darwin LNG export terminal | Greens ‘100 per cent wrong’ on Beetaloo gas, Tamboran says |Mr Riddle said Tamboran, buoyed by the result, will move quickly to drill six wells, producing first gas from drilling in 2025.Mr Riddle said Tamboran has financing in place for two of the six wells, and will move to tap capital markets for the remaining funds.Tamboran has more ambitious plans, and Mr Riddle said the company will then move to drill another 70 wells that will produce gas that will be transported to Australia’s east coast market.Tamboran last year said it had entered into an agreement with APA Group to explore developing a pipeline to transport gas north to Darwin to be readied for LNG export, and east for use in the domestic market.Mr Riddle said the east coast market will be Tamboran’s first priority, as it moves to secure social licence.A final investment decision on the largest project has been earmarked for 2025 or 2026 – subject to the pilot drilling results.Mr Riddle said the company expects a pipeline to be in place by late 2027 or early 2028, with first gas from the project expected around 2028.“We believe we are the one and only solution to address the shortfall that is projected by the a [Australian Consumer and Competition Commission] and [the Australian Energy Market Operator],” said Mr Riddle.Expanded production from Tamboran would be certainly be welcomed by Australia’s energy industry, which is increasingly alarmed by the prospect of a looming shortfall in supplies,Australia’s east coast could experience a material shortfall in supplies as soon as 2025 as traditional sources run low. New developments are struggling to secure regulatory approvals amid local community opposition.After meeting the east coast shortfall, Tamboran will then turn its attention to LNG exports – capitalising on Asia’s demand for gas.Asia is energy poor and many of the most populous countries such as Japan and Korea are reliant on Australian LNG. Demand is expected to remain strong throughout the next decade as the region curtails the use of coal, and does not have the landmass or the natural resources such as abundant amounts of sunshine to move quickly to renewables.
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