**Summary**
Falcon Oil & Gas Ltd. announced that its joint venture partner, Tamboran (B2) Pty Limited, has secured approval from the Northern Territory Government (NTG) for the Beneficial Use of Gas (BUG) agreement. This approval allows the sale of appraisal gas from the Shenandoah South Pilot Project in the Beetaloo sub-basin, marking the first such approval under the new BUG legislation. The agreement permits the sale of up to 60 TJ of gas per day over three years, with an initial 40 million cubic feet per day (MMcf/d) contracted to supply the NTG until mid-2041, enhancing energy security in the region.
Key developments include
Construction of the A$140 million Sturt Plateau Compression Facility (SPCF) is set to begin, with gas sales to the NTG expected by mid-2026.
APA Group is investing A$70 million in the 37-kilometre Sturt Plateau Pipeline, the first Beetaloo pipeline in the Northern Territory.
The 2025 drilling campaign is progressing, with batch drilling of three wells (S2-1H, S2-3H, S2-5H) underway, and stimulation of the S2-4H well planned for Q4 2025.
Falcon CEO Philip O’Quigley highlighted the increased activity in the Beetaloo Basin, including drilling, pipeline construction, and facility development. Falcon has no cost exposure in the SPCF construction or the drilling of the three wells, having reduced its participating interest to 0%.
The announcement underscores Falcon’s focus on unconventional oil and gas assets in Australia, with Tamboran (B2) holding a 77.5% interest in the joint venture. The company cautioned that forward-looking statements are subject to risks and uncertainties, including market fluctuations, regulatory changes, and operational challenges.