Australian operator Tamboran Resources is looking to step up its investments in the Northern Territory’s Beetaloo basin, which hosts low carbon dioxide gas resources.

Hot on the heels of the NT government’s recent decision to reopen the door to exploitation of the basin’s giant onshore gas resources, Tamboran last week welcomed the arrival of the Helmerich & Payne (H&P) super spec FlexRig(R) Flex 3 rig to Australia — a drilling unit that the operator said would deliver “a step change in drilling efficiency in the Beetaloo basin”.

“Tamboran welcomes the Northern Territory government’s announcement that the 135 Pepper Inquiry recommendations have been fully implemented. This gives industry the certainty to import and invest in the latest shale technology and equipment, including H&P FlexRig(R) rig,” Tamboran chief executive Joel Riddle said.

“With the government’s completion of the Pepper Inquiry, Tamboran is planning on moving rapidly towards production as early as 2025.”

Once operational, this onshore drilling rig will be the most powerful rig in Australia, capable of drilling more than 3000-metre horizontal sections within the Mid Velkerri B shale in the higher quality, deeper shale formations of the Beetaloo.

“With Beetaloo gas containing approximately 3% to 4% reservoir carbon dioxide, we expect the reduction in Scope 1 and 2 emissions will be more cost efficient when compared to offshore gas fields that can hold up to 20% associated carbon dioxide,” Riddle said.

Tamboran has already initiated discussions with potential gas buyers for volumes of 200 to 300 terajoules of gas per day from later this decade.

“Contracting this gas will be critical in enabling us to approve our 1 billion cubic feet per day development plan,” he added.

Riddle said that through the company’s strategic alliance with H&P and the possibility of importing four more rigs into Australia, commercialisation of shale gas from the Beetaloo basin has the potential to reduce current energy costs with generally lower associated emissions than existing coal and higher reservoir CO₂ gas fields.

Australia-listed Tamboran has its sights on developing low CO₂ unconventional natural gas resources in the Beetaloo sub-basin within the Greater McArthur basin in NT.

The company’s key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197, which are located in the Beetaloo sub-basin.

“The development of the Beetaloo basin, one of the world’s largest undeveloped shale gas plays, has the potential to transform the Northern Territory,” Riddle said.

“It is anticipated that thousands of direct and indirect jobs will be created locally, and hundreds of millions of dollars in royalties will be paid to Traditional Owners and the Northern Territory government,” he added.