Tamboran Raises $56M, Advances Beetaloo Gas Project, Eyes 2.9M Acre Expansion
Tamboran Resources has sanctioned its Shenandoah South Pilot Project, completed a record drilling campaign, and is progressing infrastructure to deliver gas to the Northern Territory by mid-2026. The company also announced a planned acquisition of Falcon Oil & Gas and raised $56 million in a public offering.
- Sanctioning of Shenandoah South Pilot Project with key commercial agreements
- Completion of largest-ever Beetaloo Basin drilling program with three 10,000-foot horizontal wells
- Approval to sell appraisal gas under new BUG legislation, avoiding flaring
- Planned acquisition of Falcon Oil & Gas Ltd to expand acreage and ownership
- Successful $56.1 million public offering and $32 million PIPE capital raise underway
Sanctioning and Drilling Milestones
Tamboran Resources Corporation has marked a pivotal quarter with the formal sanctioning of its Shenandoah South Pilot Project in the Beetaloo Basin, Northern Territory. This milestone follows the execution of critical commercial agreements with APA Group, financial institutions, and the Northern Territory Government, setting the stage for first gas sales targeted for mid-2026.
In a historic drilling campaign, Tamboran successfully completed three horizontal wells, SS-4H, SS-5H, and SS-6H, each with 10,000-foot lateral sections in the Mid Velkerri B shale. The program was delivered ahead of schedule and under budget, leveraging advanced Baker Hughes anti-vibration drilling technology to enhance efficiency. Stimulation of the SS-6H well commenced in November, with up to 60 stages planned and flow testing expected in early 2026, weather permitting.
Regulatory Approvals and Infrastructure Progress
Tamboran secured consent from Native Title Holders and Northern Territory Government approval under the Beneficial Use of Gas (BUG) legislation to sell appraisal gas, a critical environmental and commercial win that avoids flaring. Construction of the Sturt Plateau Compression Facility (SPCF) and the APA-owned Sturt Plateau Pipeline (SPP) is progressing on budget and schedule, with first gas delivery to the local market anticipated by mid-2026.
Strategic Expansion and Capital Raising
The company announced a definitive agreement to acquire Falcon Oil & Gas Ltd, which would increase Tamboran’s Beetaloo Basin acreage to approximately 2.9 million net prospective acres and boost its ownership in key development areas. The transaction, valued at C$239 million, is subject to shareholder approvals expected in the first quarter of 2026.
Financially, Tamboran completed a US$56.1 million public offering at US$21 per share, supported by cornerstone investor Baker Hughes, which also entered a strategic services agreement to provide oilfield services and operational support. Concurrently, a Private Investment in Public Equity (PIPE) is underway to raise up to US$32 million, including participation from major shareholders. The company ended the quarter with US$39.6 million in cash and anticipates near-term inflows of around US$100 million from recent capital raises and asset sales.
Leadership and Outlook
Leadership changes include the appointment of Richard Stoneburner as interim CEO and chairman, with a search underway for a permanent CEO. New non-executive directors Scott Sheffield and Phillip Pace have joined the board, while Joel Riddle and John Bell Sr. have stepped down.
Looking ahead, Tamboran aims to stimulate additional wells post-wet season to meet contracted gas volumes under its Gas Sales Agreement with the Northern Territory Government. The company’s integrated approach, combining operational milestones, regulatory approvals, strategic acquisitions, and capital raising, positions it as a key player in the Northern Territory’s gas market development.
Bottom Line?
Tamboran’s progress sets a strong foundation for gas production in 2026, but execution risks and shareholder approvals will be critical next steps.
Questions in the middle?
- Will the Falcon acquisition close smoothly and deliver the expected acreage and operational synergies?
- How will the upcoming flow test results from the SS-6H well influence project timelines and gas sales forecasts?
- What impact will weather and operational challenges have on the stimulation program and infrastructure completion?
