Tamboran Advances Beetaloo Gas Ambitions with $55M Raise and Key Well Tests

Operational Progress in Beetaloo Basin

Tamboran Resources Corporation has marked significant operational milestones in its Beetaloo Basin gas development program during the quarter ended March 31, 2025. The company successfully completed a 35-stage stimulation campaign on the Shenandoah South 2H sidetrack well, spanning a 5,483-foot horizontal section. This extensive stimulation effort is among the largest single campaigns undertaken in the region to date.

Following the stimulation, Tamboran implemented a prolonged "soaking" period of 62 days to optimize fracture dehydration and enhance gas flow potential, a technique informed by technical learnings from US shale operations. The well was reopened in mid-May to commence a 90-day flow test, with initial 30-day results anticipated by mid-June. These flow test outcomes will be pivotal in validating the well’s production capacity and informing future development plans.

Capital Raising and Strategic Partnerships

To underpin its ambitious drilling and development schedule, Tamboran announced a Private Investment in Public Equity (PIPE) raising approximately US$55.4 million before fees. The PIPE was priced at US$17.74 per share, reflecting a 15% discount to the closing price on May 12, 2025. The initial tranche of US$44.4 million is expected to close imminently, with the remainder subject to shareholder and customary approvals.

In parallel, Tamboran signed binding agreements with Daly Waters Energy (DWE) to finalize a checkerboard arrangement of joint acreage positions across key exploration permits. DWE will acquire a non-operating, non-controlling interest in approximately 100,000 acres for US$15 million, subject to regulatory and shareholder approvals. This transaction strategically consolidates Tamboran’s operated interests and facilitates focused development in the Phase 2 Development Area.

Advancing Development and Market Commitments

Tamboran has reserved over 406,000 gross acres as its Phase 2 Development Area, where it expects to hold a 58.12% operated interest post-transaction. The company has engaged RBC Capital Markets to initiate a formal farmout process for this acreage, aiming to attract partners to share development costs and accelerate project delivery.

Looking ahead, Tamboran plans to drill and stimulate up to four additional wells from the Shenandoah South pad through late 2025 and into early 2026, targeting horizontal sections of approximately 10,000 feet each. These wells are critical to meeting a binding Gas Sales Agreement with the Northern Territory Government, which aims to supply Darwin with reliable domestic gas to support energy security.

Tamboran also entered non-binding letters of intent with Arafura Rare Earths Limited and Linde Inc. for potential gas and helium supply agreements, respectively, signaling efforts to diversify market opportunities and leverage byproduct resources from its proposed NTLNG project.

Financial Position and Outlook

As of March 31, 2025, Tamboran held US$25.6 million in cash, with pro forma cash increasing to approximately US$96 million following the PIPE and acreage sale. This strengthened balance sheet positions the company to fund its near-term drilling and completion activities, with first gas from the Shenandoah South Pilot Project anticipated by mid-2026, subject to customary approvals and weather conditions.

CEO Joel Riddle emphasized the significance of the recent funding and operational achievements, highlighting the company’s focus on delivering gas to Australia’s East Coast market and supporting regional energy needs. The upcoming flow test results and farmout progress will be key market catalysts in the coming months.