Formentera and INPEX Announce Strategic Partnership to Accelerate Development of Australia’s Beetaloo Shale Resources

Breakthrough project leverages U.S. shale technology and expertise to unlock one of the world’s most promising new shale gas resources

AUSTIN, Texas--(BUSINESS WIRE)--Formentera Partners and INPEX announced a landmark strategic joint venture partnership that will accelerate development of vast natural gas resources from the onshore Beetaloo Basin in Australia’s Northern Territory. The collaboration brings together Formentera’s leading shale expertise and INPEX’s global LNG capabilities to establish a new domestic natural gas source for Australia and support future LNG exports to premium markets in Asia and around the world.

Partnership highlights:

• INPEX to acquire ~68,000 net acres across a core ~355,000-gross-acre block within Formentera’s 1.9 million-net-acre position in the basin through a staged earn-in for up to $208 million in consideration, which is subject to structured off-ramp provisions.
• INPEX has option to acquire ~75,000 additional net acres within the core block for $266 - $411 million in consideration, dependent on option execution timing.
• The transaction consideration will be primarily delivered as development capital by carrying the well costs of the drilling program.

Formentera’s wholly owned subsidiary, Daly Waters Energy (DWE), will operate the joint venture and bring Formentera’s significant expertise in the application of modern U.S. shale technologies, refined across millions of feet of horizontal drilling in similar geologic formations.

The combination of Daly Waters Energy’s Australian leadership and Formentera’s operational excellence has unlocked a basin long recognized for its potential yet stalled by technical, regulatory, and infrastructure challenges.

“Multiple operators exited the Beetaloo after early challenges,” said Bryan Sheffield, Managing Partner of Formentera. “We entered and applied our continuously improving expertise, advantages, and key relationships to solve what others couldn’t. I’m incredibly proud of the joint venture team and its work to prove the Beetaloo can support real, scalable natural gas development for domestic use and future export. This is a turning point for the basin, for Australia, and for the future of international shale development.”

INPEX Managing Director, Country Chair Australia, Tetsu Murayama added, “We are delighted to participate in this exciting opportunity with Daly Waters to prove up the potential to develop natural gas from the Beetaloo Sub-basin for the Northern Territory in the near term. By developing low-carbon natural gas with DWE, INPEX will also continue to supply LNG to key trading partners such as Japan and Taiwan, and we are proud of playing our part.”

For additional details and map, see our Beetaloo Basin fact sheet on our website.

A strategic partnership with global impact

Under the new partnership, Daly Waters and INPEX, with other joint venture partner Tamboran Resources, will jointly advance domestic production, anchored by a 40 million cubic feet per day (MMcf/d) supply agreement with the Northern Territory. The partnership also plans to backfill and expand the region’s LNG export capacity. INPEX, one of the world’s largest and most experienced LNG providers, plans to add a third LNG train at Icthys LNG in Darwin, Australia, anchored by growing Beetaloo production.

Unlocking opportunity through innovation and persistence

Since entering the play in 2022 with Tamboran, Formentera Partners has built one of the largest contiguous onshore unconventional acreage positions in the Beetaloo, covering 1.9 million acres.

This large-scale, multi-stack natural gas position shares key characteristics of prolific successes like the U.S. Marcellus Shale in Pennsylvania and other major U.S. shale plays, with similar geology and consistent reservoir characteristics. Over the past several years, the joint venture partners have executed a multi-well appraisal program, demonstrating that the Beetaloo holds multi-TCF of resource potential across key development areas.

With appraisal work largely complete, the next phase will focus on building out infrastructure, including takeaway and processing capacity to support domestic supply and future LNG exports. As this infrastructure develops, the Beetaloo’s scale and location also position it as potential long-term, reliable supply source for higher-demand population and industrial centers along Australia’s East Coast.

“We welcome this announcement, which supports continued economic growth in the Territory’s energy sector,” said Northern Territory Chief Minister, The Hon Lia Finocchiaro MLA. “The Northern Territory is uniquely positioned to power Australia’s future. Unlocking and delivering Beetaloo natural gas to 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 to back reliable, affordable energy for Territorians, and strengthen energy security for the nation, allies and region.”

“Working together with local communities, Traditional Owners, our partners, and all levels of government is essential to making the Beetaloo project a success,” added Sheffield. “We’re fully committed to developing this resource safely and responsibly to support local jobs, strengthen domestic energy supplies, and benefit our investors and partners.”

About Formentera

Formentera Partners is a private oil and gas investment, development, and operations platform focused on acquiring, operating, and developing oil and natural gas assets globally. Formentera produces approximately 70,000 barrels of oil equivalent on approximately 3 million 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 prioritizes responsible operations, free cash flow generation, reliable distributions, strategic development, and long-term value creation by levering its deep expertise and relationships in shale development, engineering, operations, and finance.

For more information, visit www.formenterapartners.com.

About INPEX

INPEX is Japan’s largest exploration and production (E&P) company, engaged in the development and operation of oil and gas projects worldwide. We are committed to contributing to a brighter future by delivering energy in a sustainable way. As part of this commitment, we are also engaging in lower-carbon solutions such as CCS, hydrogen and integrated power supply, while pursuing new opportunities in the evolving energy landscape.

For more information, visit https://www.inpex.com.au/