USA/AUSTRALIA — Tamboran Resources Corporation has announced significant progress in its development projects in the Beetaloo Basin, following its initial public offering (IPO) on the New York Stock Exchange (NYSE).
The company issued approximately 3.4 million shares at US$24.00 per share, raising US$82 million before fees.
These funds are earmarked for Tamboran’s ambitious two-well drilling program in 2024, which aims to support the proposed Shenandoah South Pilot Project.
Tamboran reported impressive flow test results from the Shenandoah South 1H (SS-1H) well, achieving an average IP90 flow rate of 2.9 million cubic feet per day (MMcf/d) over a 500-metre horizontal section.
When normalised to a 100-metre section, the rate increases to 5.8 MMcf/d, marking the highest normalised rate recorded in the Beetaloo Basin to date.
This success underscores the potential of the Mid Velkerri B Shale formation and sets a promising precedent for future drilling activities.
In April 2024, Tamboran secured a binding, long-term Gas Sales Agreement (GSA) with the Northern Territory government (NTG) to supply 40 terajoules (TJ) per day, with approximately 19 TJ per day net to Tamboran, for an initial term of nine years.
This agreement is a critical component of the Shenandoah South Pilot Project’s commercial strategy.
Further bolstering its operations, Tamboran was granted Major Project Status (MPS) by the NTG in June 2024 for its Beetaloo Basin development.
This designation highlights the NTG’s support for Tamboran’s integrated development plans in the region.
Additionally, in July 2024, Tamboran received an Interim Agreement providing exclusivity over a 420-acre site at the Middle Arm Sustainable Development Precinct until the end of 2027, with options for two one-year extensions.
Tamboran is preparing for its upcoming two-well drilling program, which includes the first 3,000-metre horizontal sections and 60 stimulation stages in the Beetaloo Basin.
Drilling for the first well is scheduled to begin in the third quarter of 2024, with stimulation activities planned for the fourth quarter.
The results of these activities are expected to be announced in the first quarter of 2025, potentially setting the stage for future phases of development.
As of June 30, 2024, Tamboran reported a cash balance of $111.6 million (US$73.9 million), excluding the US$7.4 million from the over-allotment option.
This financial position supports the company’s continued exploration and development efforts in the Beetaloo Basin.
Joel Riddle, Managing Director and CEO of Tamboran, emphasised the company’s achievements during the quarter, including the NYSE listing and the progress in the Beetaloo Basin.
He highlighted the NTG’s strong support and expressed confidence in replicating the successful flow rates over extended horizontal sections, which are crucial for future projects.
