Tamboran Resources Corporation has advanced its flagship Shenandoah South (SS) Pilot Project in Australia’s Beetaloo Sub-basin by closing the first tranche of its previously announced Private Investment in Public Equity (PIPE) financing.

This critical capital raise is designed to fund the drilling and development activities necessary to reach plateau production at the SS Pilot Project, targeting first gas by mid-2026.

Under the first tranche, Tamboran issued 2,180,515 shares of common stock at US$17.74 per share, raising approximately US$38.7 million before fees and expenses.

Bank of America acted as the sole placement agent for the transaction.

The proceeds are earmarked for drilling the remaining three wells required for the SS Pilot Project, funding the Sturt Plateau Compression Facility, and providing general working capital.

These developments are expected to significantly de-risk the commercialisation of Tamboran’s unconventional gas resources and support a smooth transition into early production.

The second tranche of the PIPE, expected to close in August 2025 pending shareholder approval, will see the issuance of an additional 940,729 shares at the same price, bringing total anticipated gross proceeds from the PIPE to approximately US$55.4 million.

Of this, US$1 million will be allocated to certain company directors and US$10 million will come from Formentera Partners, founded by Bryan Sheffield, both subject to shareholder consent under relevant listing rules.

Additional non-affiliated investors are participating in the second tranche, contributing US$5.7 million, also pending shareholder approval.

Tamboran’s CEO, Joel Riddle, emphasised that the PIPE funding, combined with an asset sale to Daly Waters, positions the company to fully finance the drilling and completion of the remaining wells needed to support production at the SS Pilot Project.

Drilling is scheduled to commence mid-2025, with a continuous campaign planned to maximise operational efficiency through the end of the year.

A special shareholder meeting to approve the second tranche is scheduled for August 18, 2025.

With the successful completion of both tranches, Tamboran expects to be fully funded to deliver first gas from the SS Pilot Project, marking a significant milestone in the development of the Beetaloo Basin’s gas potential.