Tamboran Resources Shares Jump 8% on Start of Key Gas Facility Commissioning

Shares of Tamboran Resources Corporation (NYSE: TBN) climbed 8% on Tuesday after the company announced it has started the gas commissioning process for its Sturt Plateau Compression Facility (SPCF) in Australia's Beetaloo Basin.

This development marks a significant operational milestone, moving the company closer to commercial production and sales from its Shenandoah South Pilot Project.

A Critical Milestone

According to a company statement, gas from wells on the Shenandoah South 2 pad is now being used to commission the new facility. The SPCF is the central piece of infrastructure needed to process and transport gas from the pilot area to the Northern Territory gas market.

The facility is managed by the SPCF Trust, a 50/50 joint venture between Tamboran and Daly Waters Infrastructure, LP. Tamboran confirmed that the project remains on schedule and within its P50 gross budget of A$141 million.

Commercial Impact and Gas Sales

Ad

The SPCF is designed to process up to 50 terajoules per day (TJ/d) of natural gas. A significant portion of this capacity is already secured under a major long-term contract.

Tamboran has a take-or-pay gas sales agreement (GSA) with the Northern Territory Government for up to 40 TJ/d for a period of up to 14 years. This type of agreement provides a stable, long-term revenue stream and significantly de-risks the project for investors. During the commissioning phase, gas will be sold to the government at a discounted rate, which is consistent with industry practice.

Path to Production

Tamboran CEO Todd Abbott described the commissioning as a "major milestone for Tamboran and the Beetaloo Basin." He noted that all five wells on the Shenandoah South 2 pad have been successfully drilled, stimulated, and connected to the facility.

With the commissioning process underway, Tamboran is on track to begin delivering its first commercial gas sales under the long-term GSA, transitioning the company from an explorer to a producer and validating the commercial potential of its Beetaloo Basin assets.