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Highlights:
Tamboran Resources has finalized a significant agreement with Daly Waters Energy, LP (DWE), securing joint interests in the Beetaloo Basin.
The company has raised capital to fund its drilling and development activities, aiming for gas production in 2026.
A formal farm-down process has been initiated, with RBC Capital Markets engaged to identify a strategic partner.
Tamboran Resources Corporation (ASX:TBN) (NYSE:TBN) is a key player in the gas industry, particularly focused on the development of natural gas reserves within the Beetaloo Basin, located in the Northern Territory. The company's latest move to consolidate its holdings in the basin has led to significant strategic progress, ensuring its continued focus on advancing exploration and production activities.
The Beetaloo Basin, part of the broader Northern Territory gas network, is gaining increasing attention due to its vast untapped gas resources, with major focus placed on its potential to supply the East Coast gas market in the coming years. Tamboran Resources' involvement in this region signifies its ongoing commitment to enhancing the sector's energy security and contributing to Australia's energy infrastructure.
Strategic Agreement with Daly Waters Energy
Tamboran has completed a key agreement with Daly Waters Energy, LP (DWE), formalizing a checkerboard arrangement over three exploration permits (EP 76, 98, and 117). Through this agreement, DWE will acquire a non-operating, non-controlling interest in a substantial landholding within the Beetaloo Basin. Tamboran Resources retains a significant majority interest in these exploration areas, maintaining operational control over the designated Phase 2 Development Area.
This partnership aims to align the exploration interests of both companies while strengthening their collective position in the Beetaloo Basin. With this deal, Tamboran continues to drive its growth strategy, keeping its long-term goals aligned with industry demands for natural gas.
Capital Raise to Fund Pilot Development
Tamboran has secured funding to propel its drilling and development efforts in the Beetaloo Basin. The company successfully closed a Private Investment in Public Equity (PIPE) placement, issuing shares to institutional investors at a discount to recent market prices. The raised funds will be allocated toward the drilling and completion of three additional wells, which are crucial for the Shenandoah South Pilot Project.
The planned three-well drilling program will advance Tamboran's efforts to achieve gas production targets by mid-2026. Drilling is expected to begin in the middle of 2025, and a single-stage stimulation campaign will maximize operational efficiencies. This capital infusion, alongside the asset sale to DWE, ensures that Tamboran remains fully funded for its upcoming activities, which are expected to be integral to meeting the company's long-term gas production goals.
Flow Testing and Farm-Down Process
Tamboran is moving forward with the flow testing of the SS-2H ST1 well, which began in March. Results from this flow testing are anticipated to be reported in stages, starting in June 2025. These results will provide valuable data to support the next phase of development within the Beetaloo Basin.
In tandem with these activities, Tamboran has engaged RBC Capital Markets to initiate a formal farm-down process aimed at finding a strategic partner to help fund the next phase of gas resource delineation. This process will allow Tamboran to continue progressing its plans while sharing some of the financial burden with a partner who is well-positioned to contribute to the development of the Phase 2 Development Area.
Focus on Future Gas Supply
The collaboration between Tamboran and DWE positions both companies to contribute significantly to the East Coast gas market, which is expected to face supply challenges in the latter part of this decade. With an increasing need for reliable domestic gas production, Tamboran Resources aims to meet these demands through its ongoing developments in the Beetaloo Basin. By securing strategic partnerships and ensuring robust funding, Tamboran is laying the groundwork for long-term success in the natural gas sector.
As Tamboran moves into the second half of 2025, the company is set to achieve critical milestones, which will play a central role in establishing its position as a major gas supplier in Australia.
