Tamboran Resources (ASX:TBN) has received approval from the Northern Territory Government to sell appraisal gas from its exploration permits in the Beetaloo Basin under the Beneficial Use of Gas (BUG) legislation, according to a Monday Australian bourse filing.

The company added that this is the first approval granted by the National Territory Government through the new BUG legislation and follows the recent consent from native title holders for the sale of up to 60 terajoules per day from the Shenandoah South Pilot project over three years.

The company's Beetaloo joint venture now holds all necessary approvals to sell gas from the SS Pilot Project, which aims to begin gas sales of up to 40 terajoules per day to the NTG under a binding gas sales agreement starting in mid-2026, subject to weather conditions, the filing added.

The company said drilling of the three remaining wells required for plateau production for delivery into the sales deal is progressing, with the intermediate section completed on all three wells.

The company has planned stimulation for one of the wells for the fourth quarter, followed by a 30-day flow test, before connecting it to the Sturt Plateau Compression Facility for gas sales to the National Territory Government.

The company's shares rose 3% in recent Monday trade.