Key Highlights

• TBN shares fell 6.67% to $0.28 on 9 September 2026 despite achieving first gas sales from the Beetaloo Basin.

• Tamboran and JV partner Daly Waters Energy commenced initial gas sales from the Shenandoah South Pilot Project on 7 September 2026.

• During the commissioning period, gas is being supplied at a discounted interruptible price before full contracted volumes commence.

• Volumes are expected to ramp up to the full 40 terajoules per day contracted with the NT Government by early 2027.

Shares in Tamboran Resources Corporation (ASX:TBN, NYSE:TBN) declined 6.67% to $0.28 on 9 September 2026, a session after the company announced one of the most significant operational milestones in its history — the commencement of initial gas sales from the Shenandoah South Pilot Project in the Beetaloo Basin, Northern Territory (announced on 7 September 2026). The market's muted or negative reaction to the news appears to reflect the nuanced nature of the milestone: gas sales have commenced, but at a discounted interruptible price during the commissioning period, with full contracted volumes not expected until early 2027.

First Gas Sales: A Basin-Level Milestone

The announcement on 7 September 2026 marked the commencement of the first-ever delivery of gas from the Beetaloo Basin into the Northern Territory gas network — a milestone of significance not only for Tamboran and its joint venture partner Daly Waters Energy LP (DWE), but for the Northern Territory's broader energy Supply picture. The Beetaloo Basin has long been identified as having substantial Natural Gas resources, and the commencement of first sales moves the basin from a development prospect to a producing asset.

CEO Todd Abbott described the development as an important first step toward establishing the Beetaloo Basin as a reliable, long-term source of natural gas for the Northern Territory and, over time, the broader Australian East Coast market. The milestone was marked by the Northern Territory Chief Minister and the Federal Minister for Resources opening the valve to deliver the first Beetaloo Basin gas into the Sturt Plateau Compression Facility.

Commissioning Period Constraints: Discounted Price and Interruptible Supply

The commercial reality accompanying the first gas milestone is that during the commissioning period, Tamboran and DWE will receive a discounted price for the gas delivered, reflecting the interruptible nature of supply in this phase. This is an important distinction from the terms of the long-term take-or-pay agreement with the Northern Territory Government, under which volumes are contracted at a different — and presumably higher — price with supply security obligations. The discounted commissioning price will be reflected in near-term Revenue until the project reaches its full contracted Volume of 40 terajoules per day, expected in early 2027.

The commissioning phase is a normal feature of large-scale gas infrastructure projects, and the interruptible supply arrangement gives both operator and buyer the flexibility to manage the technical uncertainties that can accompany initial production ramp-up. The critical question for Tamboran investors is how long the discounted commissioning phase persists and whether the ramp-up to 40TJ/d proceeds on the expected timeline.

Long-Term Contract with NT Government Underpins Revenue Outlook

The long-term take-or-pay agreement with the Northern Territory Government provides significant revenue certainty once full contracted volumes are achieved. A take-or-pay structure means the buyer (the NT Government) is contractually obligated to pay for the contracted volume regardless of whether it is actually consumed — a structure that materially reduces the volume risk for the producer. The full contracted volume of 40TJ/d is expected to be reached and commissioning completed by early 2027.

Tamboran holds approximately 2.8 million net prospective acres and is the largest acreage holder in the Beetaloo Basin depocenter, providing optionality for volume growth beyond the current pilot project if the NT market and potential East Coast export pathways justify further development.

Financial Position and Going Concern Considerations

Tamboran's own risk disclosures note substantial doubt about the company's ability to continue as a going concern, raised by recurring operational losses, negative cash flows and cumulative net losses. The company has historically required ongoing Capital raising to fund its development program. The commencement of first gas sales marks the beginning of the company's revenue-generating phase, which will be an important step in addressing this going concern question — but whether the commissioning revenue and the eventual contracted revenue at full volumes are sufficient to sustain operations without additional capital is a question that will be answered by the ramp-up timeline and the company's Cash Management in the coming months.

Conclusion

Tamboran's first gas from the Beetaloo Basin is an unambiguous operational milestone that has been years in the making and marks a pivotal moment for both the company and the Northern Territory's domestic gas supply. The market's cautious reaction appears to reflect the gap between this milestone and the full contracted revenue that comes with 40TJ/d delivery in early 2027, as well as the company's stated going concern risk. The pace of the commissioning ramp-up and the financial trajectory in the months ahead will determine whether investor sentiment around TBN can stabilise as the revenue base begins to build.