Tamboran and Santos sign MOU for Darwin LNG expansion studies Investing.com
Highlights
- Tamboran Resources Corporation and Santos Limited (ASX: STO) have entered into a non-binding Memorandum of Understanding (MOU) to conduct technical studies on the Darwin LNG (DLNG) Train 2 expansion and jointly owned EP 161 acreage. (Santos 75% operator, Tamboran 25%) in Betaloo Basin.
- The purpose of the studies is to evaluate options for supplying the potential expansion train at the DLNG facility on the Middle Arm. DLNG is approved for 10 million tonnes of LNG per annum (MTPA), with expansion potential up to ~6 MTPA.
- Santos is the operator of the DLNG project with a 43.4% working interest.
- Tamboran and Santos are joint venture partners in EP 161 acreage of ~300,000 acres of Mid Velcarri B Shale below 8,850 feet (~2,700 meters) depth. The range showed Marcellus basin-type failure curves from two Tanumbirini wells drilled and flow tested in 2022.
- Tamboran is committed to developing the NTLNG project in Mid-Arm, which is currently conducting pre-FEED studies with Bechtel Corporation.
- Tamboran and Santos are both committed to supplying natural gas from the Betalo Basin to Australia’s domestic gas and international LNG markets.
NEW YORK–( BUSINESS WIRE )–According to Joel Riddle, Managing Director and CEO of Tamboran Resources Corporation:
The MOU between Tamboran and Santos aims to explore marketing options for the development of DLNG Train 2 using natural gas from the vast prospective gas resources in the Betalou Basin.
With approximately two million acres in the Betalo Basin, Tamboran holds significant gas resources capable of supplying the Northern Territory and Australia’s east coast gas market for decades. Tamboran is well positioned to assess opportunities to accelerate value for our shareholders by leveraging multiple trading channels through the LNG markets in Darwin and Gladstone and the East Coast domestic gas market.
Tamboran and Santos have been partners for more than a decade in EP’s 161 acreage, which hosts the Betaloo East location.
We believe that the shale in the deepest Betalo East region is equivalent to the high-quality shale properties we successfully discovered in the Shenandoah South area in Betalo West. Beetaloo East is home to the Tanumbirini wells, the first wells drilled in 2022 to flow and flow, showing Marcellus Basin-style failure, albeit with smaller equipment, drilling and stimulation techniques.
We look forward to advancing discussions with Santos to unlock this important shale gas resource and contribute to DLNG’s expansion in Darwin. This development has the potential to deliver royalty payments to the Northern Territory Government and is generating royalty jobs and royalty payments for indigenous people in the region.
EP 161 needs
|
Company |
Desire |
|
Santos QNT Pty Ltd1 |
75.0% |
|
Tamboran Resources Corporation |
25.0% |
|
Total (EPA:) |
100.0% |
1 shows the EP 161 acreage operator.
This announcement has been authorized for release by Joel Riddle, Managing Director and CEO of Tamboran Resources Corporation.
About Tamboran Resources Corporation
Tamboran Resources Corporation, (Tamboran or the Company), through its Subsystem, is the largest acreage owner and operator of approximately 1.9 million net acres in the Betalo sub-basin of the Great MacArthur Basin in Australia’s Northern Territory.
Tamboran’s key assets include 38.75% working interest and operatorship in EPs 98, 117 and 76, 100% working interest and operatorship in EP 136 and 25% non-working interest in EP 161, all located in the Beetaloo Basin. .
Disclaimer
Tamboran makes no representation, assurance or warranty as to the accuracy or likelihood of any forward-looking statement or the results expressed or implied in any forward-looking statement. The forward-looking statements in this report reflect expectations as of the date of this document. Except as required by applicable law or ASX listing rules, Tamboran disclaims any obligation or undertaking to publicly update any forward-looking statements, or future financial expectations, as a result of new information or future events.
The information in this announcement does not take into account the investment objectives, financial condition or needs of any recipient and is not financial product advice. Before making an investment decision, the recipients of this advertisement should consider their own needs and circumstances and, if necessary, obtain independent professional advice. TO THE MAXIMUM EXTENT PERMITTED BY LAW, Tamboran AND ITS OFFICERS, EMPLOYEES, AGENTS AND CONSULTANTS DO NOT WARRANT, REPRESENT OR WARRANT THE ACCURACY, COMPLETENESS OR RELIABILITY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. Furthermore, neither Tamboran nor its officers, employees, agents or consultants shall be liable to the fullest extent permitted by law for any losses, claims, damages, costs or expenses contained in this notice or in connection therewith.
Note on forward-looking statements
This press release It contains forward-looking statements relating to the Company under Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the Company’s current expectations and predictions about future events at the time, and therefore involve uncertainty and risk. The words believe, expect, expect, do, do, do, may, plan, estimate, plan, predict, potential, continue and the negatives of these words and other similar expressions generally identify forward-looking statements.
The Company’s future financial performance may differ from expectations for a number of reasons, including: our early stage of growth with no material revenue expected through 2026 and our limited operating history. additional capital necessary for our business plan that we cannot raise on acceptable terms; Our strategy to deliver natural gas to Australia’s east coast and select Asian markets relies on building additional pipeline capacity, which cannot be secured; the lack of proven reserves and our drilling may not produce natural gas in commercial quantities or quality; the speculative nature of drilling activities that involve significant costs and may not result in discoveries or increases in our future production or reserves; challenges associated with importing U.S. practices and technologies into the Northern Territory, which may impact our operations and growth due to our local experience; the need for timely acquisition of appropriate equipment and infrastructure, which may affect our market access and business plan execution; complex and natural hazards of drilling, completion, workover and hydraulic fracturing operations that could adversely affect our business; natural gas price volatility and its potential adverse impact on our financial condition and operations; construction delays, price increases and adverse effects on financial and operating performance related to midstream projects; the fundamental impact on our business if our assessments of Beetaloo are materially inaccurate; The concentration of all our assets and operations in Betalo exposes us to region-specific risks. significant uncertainty regarding our ability to continue as a going concern due to our recurring operating losses, negative cash flows and cumulative losses; complex laws and regulations that could affect our operating costs and profitability or result in significant indebtedness; community opposition that could cause costly delays and prevent us from obtaining necessary government approvals; exploration and development activities in Betaloo may lead to legal disputes, operational disruptions and reputational damage due to native title and heritage issues; natural gas production requirement on a net zero basis of 1 when commercial production commences with operational zero internal goals that may increase our production costs; paying more attention to ESG issues and environmental measures that may negatively impact our business operations, risks related to our corporate structure; RISKS RELATED TO COMMON STOCKS AND CDIS; and other risk factors discussed in this report and the Company’s filings with the Securities and Exchange Commission.
All these factors cannot be foreseen or identified. Any forward-looking statements contained in this document are based on the Company’s experience and certain assumptions and analyzes of historical trends, current conditions, future developments and other circumstances that it believes to be appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ from expectations. While the Company continually evaluates trends and uncertainties affecting the Company’s results of operations and financial condition, the Company undertakes no obligation to update or supplement any forward-looking statements contained in this document.
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Investor Questions:
Chris Morbey, Vice President “Corporate Development and Investor Relations
+61 2 8330 6626
Investors@tamboran.com
Media Inquiries:
+61 2 8330 6626
media@tamboran.com
Source: Tamboran Resource Corporation