Australian LNG player Santos on Tuesday announced the spudding of its first appraisal well in the Beetaloo Basin, marking a “major” milestone towards unlocking a new source of long-term gas supply for Australian households, businesses, and industry.
Santos noted in a statement that the commencement of drilling follows approval of its environmental management plan (EMP) by the Northern Territory Minister for Lands, Planning and Environment in May 2026, authorizing the appraisal drilling program.
Spudding the well is a “critical” first step in the drilling process with the drill bit breaking ground on Friday morning.
Territory-based contractor Exact Contracting completed construction of the well pad, access tracks, and key road intersection upgrades, paving the way for drilling operations to commence.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said spudding the first appraisal well was a “significant achievement” for Santos and the Northern Territory – and for Australia.
“The Beetaloo Basin is a phenomenal resource of national importance. Santos is excited to be investing in a Territory that understands what responsible gas development delivers – more jobs and local business opportunities, stronger communities and a resilient economy for Territorians,” Gallagher said.
“The first appraisal well is a critical milestone as we work to prove the commerciality of this world-class gas resource, with our acreage alone having the potential to supply up to 10 Mtpa LNG and serve the northern and east coast domestic gas markets for 50 years or more,” he said.
Second Darwin LNG train
The Beetaloo Sub-basin, part of the greater McArthur Basin, is estimated to contain more than 430 trillion cubic feet (tcf) of undiscovered gas-in-place on a basin-wide P50 basis, making it one of the most significant onshore gas opportunities in the world, Santos claims.
Santos said that the Beetaloo appraisal campaign follows the commissioning of the Barossa gas project, which feeds the revitalized Darwin LNG plant and is now averaging one LNG cargo every 8 days to provide energy security for Australia’s regional trading partners for decades to come.
Darwin LNG provides a natural launch pad for the next phase of Northern Territory energy development, including carbon management, a potential pipeline connection to the Beetaloo, and a second LNG train fed by Beetaloo gas, the company said.