Tamboran Resources: A Gargantuan gas resource in a virgin Aussie basin
Tamboran Resources Managing Director Joel Riddle on 3AW, 2GB, 4BC & 6PR Bulls N' Bears Report
Listen to ASX-listed Tamboran Resources Managing Director Joel Riddle talk to Matt Birney on the Bulls N’ Bears Report about Tamboran’s multi-million-dollar deal to sell gas to the NT Govt from a ridiculously large Australian gas basin that is right on the verge of first gas production.
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RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by onshore gas developer Tamboran Resources
Matt Birney - ASX: TBN
Matt Birney - I'm Matt Birney and I'm joined now by the Managing Director of Tamboran, Joel Riddle.
Matt Birney - Hi Joel
Joel Riddle - Hey Matt nice to be with you
Matt Birney - Okay Joel so Tamboran has a very large slice of the onshore Beetaloo Gas Basin in the Northern Territory, that is harbouring gargantuan amounts of gas that some say even rival some of the most revered gas basins in the world.
Matt Birney - Just how much land do you have in the Beetaloo and what's your existing gas resource?
Joel Riddle - We have 1.9 million net acres and our net gas contingent resources are greater than 100 TCS so if you put that in perspective, that's over 10 times the size of the North West Shelf project offshore Perth.
Matt Birney - I understand Tamboran has agreed to sell gas to the Northern Territory government, initially from a pilot plant, how much gas a day will you sell to them and what does gas sell for in the broader market today or what would your revenue be expected to be from that?
Joel Riddle - So our contract is for 40 TJs a day for 15 1/2 years, again selling to the Northern Territory government we would expect revenues per year to be about 40 million US net to the company.
Matt Birney - Okay so is that a take or pay arrangement with the Northern Territory government or just best endeavours, firstly, and secondly how will you get the gas up to Darwin?
Joel Riddle - So this is a take or pay contract. This is a firm binding deal with the NT government and we're going to be feeding into the local Amadeus gas pipeline.
Joel Riddle - That's an existing 12-inch line that connects the Beetaloo right to Darwin, to a gas-fired electricity plant called the Weddell Power Station. So we're going to be tapping into an existing pipe and selling that gas to the local market in the Northern Territory.
Matt Birney - How many wells do you still need to drill to feed that pilot plant? How much will they cost and how will you fund them?
Joel Riddle - So we anticipate drilling up to six wells to develop that 40 TJs a day initially, we'll drill two wells this year. We're about to start the drilling of those two wells this week and depending on what we see on productivity over those two wells, this year we'll stage our subsequent drilling next year to feed into the 40 TJs a day plant.
Joel Riddle - We could see up to 40 TJs a day online by early 2026 so right now we're planning two wells this year, four wells next year.
Joel Riddle - In total that's roughly about $150 million that we will look to fund that pilot project. We've just successfully raised over $100 million as part of a US listing and that's going to be toward funding the first two wells this year.
Matt Birney - Joel Riddle from Tamboran Resources.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
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