Highlights
• During the quarter, Tamboran and Daly Waters Energy LP (DWE) completed the $60 million
acquisition of Beetaloo Basin assets EP 76, 98 and 117. The acquisition positions Tamboran as
the largest operator and acreage holder in the Basin, with ~1.9 million net prospective acres.
• Tamboran completed drilling the Maverick 1V (M1V) well in 100 per cent owned and operated EP
136, reaching a total depth (TD) of 3,050 metres. The vertical well reached TD in 18.3 days, a 54
per cent reduction in drill time compared to other nearby vertical wells of similar depth, and
encountered strong gas shows within the Mid-Velkerri “A”, “B” and “C” shales.
• In November 2022, Tamboran commenced drilling the Amungee 2H (A2H) well within 38.75 per
cent owned and operated EP 98. The well reached a TD of 3,883 metres in 38 days, including a
1,275-metre horizontal section, in December 2022, representing the fastest well drilled to a TD in
excess of 3,500 metres.
• Tamboran plans to commence a stimulation program of the A2H well during the first quarter of
calendar year 2023, subject to weather allowing for the mobilisation of equipment.
• In December 2022, Santos, the operator of EP 161 (Tamboran 25 per cent), suspended operations
at the Tanumbirini 2H (T2H) and 3H (T3H) wells. Following tubing installation in July 2022, the
wells reached 90-day production rates (IP90) of 1.6 and 2.1 million standard cubic feet per day
(mmscfd) respectively (normalised at 2.4 and 3.5 mmscfd over 1,000-metre horizontal sections).
• Tamboran released its 2022 Sustainability Plan, outlining the Company’s vision for playing a part
in the global energy transition to a low carbon economy.
• At 31 December 2022, the Company had a cash balance of $60.9 million, with no debt.
Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle said:
“The second quarter of financial year 2023 has been a busy period for Tamboran, including the completion
of the acquisition of Origin Energy’s Beetaloo Basin assets in just 50 days and drilling the M1V well in EP
136 and A2H in EP 98.
“The vertical section of the 100 per cent owned and operated M1V well was drilled in 18.3 days, a significant
reduction in drilling time compared to nearby offset wells with depths exceeding 2,500 metres. This was
made possible by the Tamboran team’s unconventional expertise, having drilled thousands of wells in
North American shale basins, and supports our aims for long term cost reductions in Beetaloo drilling.
“Following the completion of the acquisition of Beetaloo Basin permits EP 76, 98 and 117, the team
commenced drilling the A2H well, our first operated horizontal well in the Basin. The well was drilled and
cased to a TD of 3,883 metres, which included a 1,275-metre horizontal section within the Mid-Velkerri ‘B
Shale’ formation. Importantly, the A2H well was drilled and cased with 5-½ inch casing, the optimal casing
size to place high intensity stimulation stages.
“The stimulation program at the A2H well is planned to commence in the first quarter of calendar year 2023
and will include up to 24 stimulated stages within the 1,200-metre horizontal section in the Mid-Velkerri ‘B
Shale’. We look forward to sharing the flow results during the first half of calendar year 2023.”
EP 76, 98 and 117
Tamboran 38.75 per cent working interest and operator, subject to completion of Falcon Farm-in
During the quarter, Tamboran safely drilled and cased the A2H well in 38.75 per cent owned and operated
EP 98. The well reached a TD of 3,883 metres in 38 days (spud to TD). This included a 1,275-metre
horizontal section within the target formation of the Mid-Velkerri “B Shale”. The A2H well intersected the
formation at 2,413 metres (vertical depth) and encountered significant gas shows within the formation, in
line with pre-drill expectations.
The A2H well is the first well in the Beetaloo Basin, targeting the Mid-Velkerri “B Shale” to have been drilled
and cased with 5-½ inch casing, the optimal casing size to place a high intensity stimulation and on par
with modern US unconventional drilling designs. The larger casing diameter is expected to deliver sand
and fluid at an increased rate to the perforations during the stimulation. This is a proven concept that has
been known to deliver significantly higher production rates and Estimated Ultimate Recovery (EUR) than
smaller casing diameter wells. The Silver City Drilling Rig No. 40 has since been rigged down and released
from site.
In early 2023, Tamboran contracted Condor Energy Services (Condor) to undertake the stimulation
program for the A2H well. Under the contract, Condor will provide stimulation and coiled tubing services to
complete up to 24 stimulation stages within the Mid-Velkerri “B Shale”, expected to commence during the
first quarter of calendar year 2023, subject to weather conditions.
The joint venture continues to review the extensive data acquired in the purchase of the Beetaloo Basin
assets to finalise the location of the second well under the Falcon farm-in obligation.
Approximately $21.3 million was spent by Tamboran during the quarter on the EP 76, 98 and 117 drilling
operations, $13.0 million of which was drilling expenses reimbursed to the prior owner in accordance with
the sales agreement. The remaining $8.3 million consisted of drilling expenses incurred by Tamboran for
the operations in EP 98 following completion of the transaction.
EP 136, EP 143 and EP(A) 197
Tamboran 100 per cent working interest and operator
During the second quarter, the M1V well reached a TD of 3,050 metres in 18.3 days, a record drilling time
for a well deeper than 2,500 metres. The well intersected the Mid-Velkerri “A”, “B” and “C Shales” exhibiting
strong gas shows, consistent with nearby wells. A full suite of logs were run across the three shale
formations, showing downhole consistency with the nearby Tanumbirini and Velkerri 76 S2-1 wells.
Following the completion of logging, the M1V well was successfully cased and suspended to enable
potential future re-entry and side track for multi-stage stimulation work. The Ensign 970 was rigged down
and released in mid-December 2022.
During the quarter, Tamboran spent approximately $18.0 million on the 2022 Beetaloo drilling campaign,
which included civil works and drilling of the M1V well. This was offset by $3.8 million of funds received
through the Beetaloo Cooperative Drilling Program in October.
EP 161
Santos 75 per cent working interest and operator, Tamboran 25 per cent working interest
During the second quarter, Santos completed IP90 testing of the T2H and T3H wells following the
installation of production tubing in July 2022. Operations were subsequently suspended following the
completion of the on-site activities.
The T3H well delivered an average IP90 flow rate of 2.1 mmscfd over a 600-metre completed horizontal
section (normalised at 3.5 mmscfd over 1,000-metres). The T2H well delivered an average IP90 flow rate
of 1.6 mmscfd over a 660-metre completed horizontal section (normalised at 2.4 mmscfd over 1,000-
metres). The lower production rate from T2H is due to the well having been on production for the majority
of 2022, compared to the T3H well, which was shut-in in February 2022 for pressure build-up testing.
No work is planned within the EP 161 permit during calendar year 2023 as the operator works to finalise
the Land Access and Compensation Agreement (LACA) with the pastoral leaseholder.
During the quarter, approximately $1.0 million was spent by Tamboran on its share of the EP 161 joint
venture drilling campaign.
Commercial and Corporate
Completion of the acquisition of EPs 76, 98, 117 in the Beetaloo Basin
During the quarter, Tamboran completed the acquisition of Beetaloo Basin assets EP 76, 98 and 117 in a
50:50 JV with DWE (the JV), a wholly owned subsidiary of Sheffield Holdings LP (Sheffield). Sheffield and
Tamboran each hold 38.75% with existing partner, Falcon Oil & Gas Australia Limited (Falcon), holding the
remaining 22.5% in the three permits.
The acquisition positions Tamboran as the largest acreage owner in the Beetaloo Basin, with approximately
1.9 million net prospective acres and approximately 147 TCF of 2U net prospective gas resources1,2 and
increases Tamboran’s net 2C contingent gas resources to ~1.5 TCF2.
Shareholder approval of Tranche 2 allotment
In October 2022, Tamboran shareholders approved the second allotment of shares under the $138 million
(pre-cost) equity placement at $0.21 per share. The second allotment resulted in the issue of 481,881,355
new ordinary shares.
The $138 million equity raise, which was announced on 20 September 2022, included a $98 million Private
Placement to strategic partners and US cornerstone investors, including equity investments of $30 million
by Sheffield, $22 million by Helmrich & Payne (H&P) and $46 million by several other US energy-focused
institutional investors. An additional $40 million was raised via a further placement to sophisticated and
institutional investors outside the United States.
Related Party Payments
Payments of $1.2 million were made to related parties and their associates during the quarter, as disclosed
in item 6.1 of the accompanying Appendix 5B relating to directors’ fees and Managing Director
remuneration.
Investments
Investments of $30.4 million were made into Tamboran B2 Pty Ltd, held as a 50/50 Joint Venture between
Tamboran and Sheffield, as disclosed in item 2.1(e) of the accompanying Appendix 5B. The amount
includes costs associated with the acquisition of Beetaloo Basin assets and stamp duty.
Capital Structure
At the end of the quarter, Tamboran had total cash on hand of $60.9 million and no debt. The current capital
structure is as follows:
1,416,010,751 Fully paid Ordinary shares
18,151,251 Options fully vested (unlisted)
41,250,000 Options unvested and subject to milestones (unlisted)
Changes to the capital structure from the previous quarter include the issue of:
• 481,881,355 shares following the completion of Tranche 2 of the $138 million equity placement and
$3.4 million share purchase plan; and
• 2,850,000 unvested options, subject to milestones.
Use of Funds
A comparison of the Company’s actual expenditure since admission to the Official List of the ASX on
2 July 2021 to 31 December 2022 with estimated expenditure in the Use of Funds statement of the
prospectus is set out below, in accordance with ASX Listing Rule 5.4.4.
Since the release of the prospectus, Tamboran has spent a total of $98.4 million on the following:
• $75.2 million on exploration and evaluation expenditure ($56.5 million outlined in the
prospectus), including drilling operations at Tanumbirini 2H/3H and Maverick 1V (civils and shared
costs for future wells).
• $16.9 million on G&A and working capital ($8.2 million outlined in the prospectus), excluding
post-IPO legal costs, advisors and fees related to capital market activities, and administrative costs
subsequent to the acquisition of the Beetaloo Basin assets.
• $4.8 million relating to the IPO ($4.6 million outlined in the prospectus).
• $1.5 million for royalty reduction payment and leasehold improvements ($1.5 million outlined
in the prospectus).
There was no production or development expenditure during the quarter
Planned Activities for March 2023 Quarter
During the March quarter, the Company’s activities will be focused primarily on the Beetaloo Basin assets
operated by Tamboran, with activities and news expected to include the following:
• Stimulation of the A2H well in EP 98 with up to 24 stages.
• Finalise location of the final well required under the Falcon farm-in obligations.
Permits
