Tamboran Resources’ Sweetpea Petroleum awarded gas exploration grant

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Sweetpea Petroleum Pty Ltd, a subsidiary of Tamboran Resources, a public natural gas company, has been awarded a grant of up to $7.5 million by the Australian government to support gas exploration in the Beetaloo Sub-Basin.

The funding is intended to support the drilling of the Maverick 1H (“M1H”) well within Tamboran’s 100% owned and operated EP 136 permit, located within the ‘Core’ Beetaloo Sub-basin during calendar year 2022.

“The funding is intended to support up to 25% of the costs of drilling, fracture stimulation and flow testing of the M1H well, limited to $7.5 million, in EP 136, our 100% owned and operated permit in the ‘Core’ Beetaloo Sub-basin,” said Tamboran Resources Managing Director and CEO, Joel Riddle in an ASX Announcement.

“Subject to the delivery of commercial flow rates from the M1H well, Tamboran plans to expedite the proposed Maverick Pilot Development within EP 136, which could target first gas deliveries to the Australian domestic market by the end of calendar year 2025.

“Santos, our joint venture partner and operator of EP 161, successfully drilled the Tanumbirini 2H and 3H wells, which are currently undergoing extended flow testing.

“These wells have already provided valuable information and learnings that has validated our Mid-Velkerri “B” shale model and details for the design and execution of our drilling program on EP 136 during calendar year 2022”

According to the official media release, the grant was awarded under the Beetaloo Cooperative Drilling Program, part of the Beetaloo Strategic Basin Plan and the Government’s $226 million commitment to the Beetaloo.

The Beetaloo Sub-basin is approximately 500km south-east of Darwin in the Northern Territory.

Under the Beetaloo Cooperative Drilling Program, the Government is offering grants from $750,000 to $7.5 million per well.

Minister for Resources and Water Keith Pitt said Beetaloo has the potential to provide a world-class gas resource.

“Investment such as this will help accelerate gas development in the Beetaloo, which has the potential to create thousands of jobs. Gas from the basin can also make a significant contribution to maintaining Australia’s affordable and reliable energy supplies,” Minister Pitt said.

“We should take the energy crisis in Europe as a warning of what could happen in Australia if there is not enough investment in the gas sector.

“As uncertainty grips the world, our international partners will look to Australia for the resources they need to provide energy security.

“In an uncertain world, our reputation as a leading and reliable supplier of resources can provide stability and development of the Beetaloo will enhance that well-deserved reputation.”

 Image credit: https://www.industry.gov.au/data-and-publications/unlocking-the-beetaloo-the-beetaloo-strategic-basin-plan/the-beetaloo-sub-basin