Formentera and INPEX Forge Strategic Partnership to Accelerate Beetaloo Shale Development in Australia
Formentera Partners and INPEX have announced a landmark strategic joint venture designed to fast-track the development of vast natural gas resources in the onshore Beetaloo Basin, located in Australia’s Northern Territory. This collaboration combines Formentera’s world-class expertise in shale operations with INPEX’s extensive global LNG experience, creating a new, reliable domestic natural gas supply for Australia while laying the groundwork for future LNG exports to high-demand markets across Asia and the world.
Key Partnership Highlights
As part of the agreement, INPEX will acquire approximately 68,000 net acres within a core 355,000-gross-acre block of Formentera’s 1.9 million-net-acre position in the Beetaloo Basin. The acquisition will occur through a structured staged earn-in valued at up to $208 million, subject to agreed off-ramp provisions. Additionally, INPEX holds an option to acquire around 75,000 more net acres within the core block, with consideration ranging from $266 million to $411 million depending on the timing of option execution.
The financial structure of the partnership prioritizes development capital, with INPEX carrying the drilling program’s well costs. Formentera’s wholly owned subsidiary, Daly Waters Energy (DWE), will serve as the joint venture operator, leveraging Formentera’s extensive experience with modern U.S. shale techniques, refined over millions of feet of horizontal drilling in geologically similar formations.
By pairing Daly Waters Energy’s leadership in Australian operations with Formentera’s operational excellence, the partnership addresses challenges that previously stalled development in the Beetaloo Basin, including technical, regulatory, and infrastructure hurdles.
“Several operators exited the Beetaloo after encountering early challenges,” said Bryan Sheffield, Managing Partner of Formentera. “When we entered the basin, we applied continuously improving expertise, proprietary technologies, and strategic relationships to solve problems others couldn’t. I am extremely proud of our joint venture team for proving that the Beetaloo can support scalable natural gas development for domestic use and future export. This partnership represents a pivotal moment for the basin, for Australia, and for the global shale industry.”
Echoing this sentiment, Tetsu Murayama, INPEX Managing Director and Country Chair for Australia, said, “We are thrilled to partner with Daly Waters Energy to realize the potential of the Beetaloo Sub-basin. Developing low-carbon natural gas here will not only support domestic energy demand but also allow INPEX to continue supplying LNG to key international partners, including Japan and Taiwan. We are proud to contribute to both Australia’s energy security and international energy markets.”
A Strategic Partnership with Global Impact
The joint venture, which also includes Tamboran Resources as a partner, will advance domestic production in the Northern Territory, anchored by a 40 million cubic feet per day (MMcf/d) supply agreement. Beyond supporting domestic demand, the partnership aims to expand LNG export capacity in the region. INPEX, recognized as one of the world’s most experienced LNG operators, is planning to add a third LNG train at the Icthys LNG facility in Darwin, leveraging growing production from the Beetaloo Basin to supply international markets.
Unlocking Opportunity Through Innovation and Persistence
Since entering the Beetaloo Basin in 2022 with Tamboran Resources, Formentera has established one of the largest contiguous onshore unconventional gas acreage positions in the region, covering 1.9 million acres. The Beetaloo’s geology shares key characteristics with prolific U.S. shale plays such as the Marcellus Shale, including consistent reservoir properties and multi-layered formations capable of supporting large-scale production.
Over the past several years, the joint venture partners executed a multi-well appraisal program, confirming multi-TCF (trillion cubic feet) resource potential across key development areas. With appraisal largely complete, the focus is shifting toward building critical infrastructure, including processing facilities and takeaway capacity, to support domestic energy supply and enable LNG exports. The basin’s scale and strategic location also position it as a long-term, reliable source of natural gas for major population centers and industrial hubs along Australia’s East Coast.
Northern Territory Chief Minister, The Hon Lia Finocchiaro MLA, welcomed the announcement, stating, “This partnership supports continued economic growth in the Territory’s energy sector. The Northern Territory is uniquely positioned to power Australia’s future. Unlocking Beetaloo natural gas for domestic and international markets is not just an opportunity—it is a national imperative. In our year of growth, certainty, and security, we will continue backing reliable, affordable energy for Territorians while strengthening energy security for the nation, our allies, and the broader region.”
Sheffield added, “Success in the Beetaloo requires collaboration with local communities, Traditional Owners, our partners, and all levels of government. We are fully committed to developing this resource safely and responsibly, creating local jobs, strengthening domestic energy supply, and delivering value for our investors and partners.”
Source Link: https://www.businesswire.com/
