Formentera Partners and Daly Waters Energy Achieve First Natural Gas Sales from the Beetaloo Basin

First Beetaloo gas sales launch long-term contracted supply to the Northern Territory and mark a shift from appraisal to development.

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First Beetaloo natural gas flows to homes and businesses in Australia’s Northern Territory

Volumes to build to 40 TJ/d contracted to the Northern Territory Government by the end of 2026

AUSTIN, Texas--(BUSINESS WIRE)-- Formentera Partners, its Australian operating company, Daly Waters Energy (DWE), and joint-venture partner Tamboran Resources (NYSE: TBN), today announced they achieved first sales of natural gas from the Shenandoah South Pilot Project in Australia’s Beetaloo Basin.

These are the first natural gas molecules ever sold from the Beetaloo and will be used to power Darwin, the Northern Territory’s capital and largest city. The gas moves through the Sturt Plateau Compression Facility (SPCF), which began commissioning activities in late August with a nameplate capacity of 48.5 MMcf/d (50 TJ/d).

“For years, people talked about the potential of the Beetaloo, and today we’ve transformed that into the steady flow of natural gas to Territorians,” said Bryan Sheffield, Managing Partner of Formentera. “Delivering first gas on time, on budget from a frontier basin is a real accomplishment that took close collaboration among our partners, contractors, the government, Native Title Holders, and the community. For the next phase, we will be more than a partner, we will become an operator, which means more capability and more investment coming into the Territory. We’re working toward something even bigger as we grow production to serve the Territory first and, over time through our strategic partnership with INPEX, help supply LNG to markets around the world.”

Highlights

• First natural gas from the Beetaloo has been sold into the Northern Territory gas network.
• Volumes are set to build to the full 38.8 MMcf/d (40 TJ/d) contracted to the Northern Territory Government by the end of 2026, under a take-or-pay agreement that runs for up to 15 years.
• Start-up work is set to wrap up by the end of 2026.

Great Progress in Just Four Years

Formentera entered the play in 2022 and today holds 1.9 million net acres through the core of the basin, making it one of the largest acreage positions in the Beetaloo Basin. The rock shares key characteristics with some of the most prolific U.S. shale plays, including the Marcellus Shale in Pennsylvania. A growing body of successful appraisal results continues to demonstrate the scale, quality and repeatability of the resource, reinforcing the Beetaloo’s potential to become a major, long-life natural gas basin capable of serving the Northern Territory, supplying Australia’s East Coast, and supporting the country’s LNG export industry for decades to come.

In March 2026, Formentera and DWE joined together with INPEX, one of the world’s leading LNG providers, to progress the basin to large-scale development. In August, the group announced plans to import a Helmerich & Payne (H&P) FlexRig® from the USA. This will be the second H&P rig operating in the Beetaloo Basin. The rig is being prepared in Houston for the trip to the Beetaloo and is set to arrive in the second quarter of 2027. DWE will also transition from partner to operator in the next phase of development. First gas marks an important inflection point: the Beetaloo is moving from appraisal toward development, investment, and long-term value creation for the Territory.

About Formentera Partners

Formentera Partners is a global E&P operator with an in-house private equity platform. Formentera produces approximately 70,000 barrels of oil equivalent per day on approximately 3 million gross acres globally, with balanced commodity exposure. Based in Austin, Texas, the firm directly employs more than 300 people and manages more than $2.9 billion in total investor commitments. Formentera has deep experience in operations, capital allocation and financing applying a battle-tested, value-creation playbook to high-quality proven assets creating meaningful return of capital.

About Daly Waters Energy

DWE, backed by Formentera Partners, is a leading exploration and production company focused on the Beetaloo Basin in Australia’s Northern Territory. DWE entered the Beetaloo Basin in 2022 through a joint venture with Tamboran Resources and has more than 1.9 million net acres in the core of the basin. DWE will operate some of the best acreage in the Beetaloo Basin once its retention license applications are approved, likely in Q4 2026.

For more information, visit: https://www.dalywaters.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20260907534797/en/

Investor & US Media Contact:
Lindsey Heintz
lheintz@formenterapartners.com

Investor & Australia Media Contact:
David Close
david.close@dalywaters.com

Source: Formentera Partners

Key Terms

nameplate capacity technical

Nameplate capacity is the maximum output a power plant, factory, or piece of equipment can produce under ideal conditions, as specified by the manufacturer. Investors care because it sets the upper limit on potential revenue and growth—actual earnings depend on how often and efficiently that capacity is used, similar to a car’s top speed versus how fast you actually drive in daily traffic.

take-or-pay agreement financial

A take-or-pay agreement is a contract in which a buyer commits to either purchase a set minimum amount of goods or services from a supplier or, if they do not take that quantity, pay a predetermined penalty or fee instead. It matters to investors because it creates predictable revenue for the supplier and fixed-cost obligations or potential penalties for the buyer, affecting both firms’ cash flow, risk exposure, and the valuation of future earnings—like a subscription that must be paid for even if not fully used.

lng technical

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it takes up far less space for transport and storage, like turning a bulky bundle into a compact package for shipping. Investors care because LNG enables gas trade across regions without pipelines, so changes in production, export capacity, shipping, or demand can quickly affect energy company revenues, infrastructure operators and commodity prices, amplifying both opportunity and risk.