Highlights
• Tamboran successfully completed the 10-stage stimulation program over a 500-metre (1,640-foot)
horizontal section of Mid Velkerri B Shale within the Shenandoah South 1H (SS-1H) well in
Beetaloo Basin exploration permit EP 117. Flow back commenced in January 2024 and the
Company is on track to announce 30-day initial production (IP30) flow rates in Q1 2024.
• Diagnostic fracture injection test (DFIT) of the Mid Velkerri B Shale in SS-1H demonstrated an
over pressured regime, with a pore pressure gradient of at least 0.54 pounds per square inch (psi)
per foot, in line with results demonstrated at Tanumbirini (0.51 – 0.56 psi per foot).
• The Company announced a Strategic Partnership and received a US$10 million (A$15.2 million)
equity investment from Liberty Energy Inc. (NYSE: LBRT) (Liberty), a leading North American
energy services firm. Liberty plans to import a modern frac fleet into the Beetaloo Basin in 2024.
• Tamboran and APA Group (ASX: APA) signed three agreements for the development of the
Beetaloo Basin: an Early Works Agreement to develop a pipeline to connect the proposed Sturt
Plateau Compression Facility (SPCF) to the Amadeus Gas Pipeline; an Early Works Agreement
to develop a large diameter pipeline to connect Tamboran’s acreage in the Beetaloo Basin to the
East Coast gas grid; and an enduring Partnering Agreement.
• Tamboran’s Security holders voted in favour to redomicile the Company in the USA via a Scheme
of Arrangement. Securities remain listed on the ASX via CHESS Depository Interests (CDIs).
• The Company successfully raised A$55 million via an Institutional Placement and Entitlement
Offer on a 1 for 6.2 basis at A$0.16 per CDI. The placement was supported by a A$7.6 million
investment from the Company’s largest shareholder, Mr. Bryan Sheffield, and existing
shareholders.
• As at 31 December 2023, the Company had a cash balance of A$47.8 million. Tamboran received
an additional A$14.2 million in January 2024 relating to the Retail Entitlement Offer.
Tamboran Resources Corporation Managing Director and CEO, Joel Riddle said:
“The second quarter has seen significant activity as we progress towards our proposed Pilot Project in the
deeper section of the Mid Velkerri B Shale at Shenandoah South. The successful stimulation program at
SS-1H was carried out in December 2023 and we look forward to announcing IP30 flow rates from the well
during the first quarter of 2024.
“The Company successfully raised A$55 million from our existing shareholders and new strategic partner
Liberty Energy, a highly regarded onshore energy services firm. The funding is expected to support our
activities and purchase of long lead items until the sanctioning of the proposed Shenandoah Pilot Project.
“Finally, we advanced key commercial agreements with APA Group in the form of three signed agreements
for the development of the Beetaloo Basin. Our strategic partnerships with APA Group, Liberty Energy and
Helmerich & Payne strongly position the Company to accelerate the development of our significant
Beetaloo Basin acreage position to initially support both the Northern Territory and East Coast gas markets,
which are both expected to be short of gas during the decade.”
EP 76, 98 and 117
Tamboran 38.75 per cent working interest and operator
During the quarter, Tamboran announced results from a DFIT analysis of the Mid Velkerri B Shale within
the SS-1H well. The results were based on a linear flow analysis and demonstrated an over pressured
regime, with a pore pressure gradient of at least 0.54 psi per foot, in line with results at Tanumbirini (0.51
– 0.56 psi per foot). The analysis was verified by third-party subsurface experts, Subsurface Dynamics,
Inc.
Tamboran successfully completed the 10-stage stimulation program at the SS-1H well in December 2023
delivering a proppant intensity of 2,212 pounds per foot (lb/ft) and rates of 100 barrels per minute (bpm), a
first in the Mid Velkerri B Shale and in line with current US shale basin slickwater stimulation designs. Initial
evaluation of the stimulation performance has demonstrated strong fracture conductivity, exceeding the
pre-stimulation design modeling, and assessment of the fractures during the early recovery of stimulation
fluid indicate no skin damage within the formation.
Following the installation of production tubing, flow back activities were initiated and the well achieved gas
breakthrough prior to the end of the year, delivering strong and steadily increasing flow rates.
In early 2024, flow back activities were paused and the well shut in to allow for a three-week soaking period.
The soaking aims to allow for the remaining stimulation fluid to be absorbed by the shale, increasing the
relative permeability to gas of the formation and enhancing future production performance. The well was
re-opened in mid-January 2024 and flow testing commenced. The IP30 flow test results are expected to
be announced during the first quarter of 2024.
Approximately A$19.5 million was spent by Tamboran during the quarter on the EP 76, 98 and 117 drilling
operations.
EP 161
Santos 75 per cent working interest and operator, Tamboran 25 per cent working interest
Santos, as operator of the EP 161 permit, completed the suspension activities of the T2H and T3H wells
and continued the remediation of the Tanumbirini well pad following successful flow testing during 2022.
During the quarter, the operator submitted an Environmental Management Plan to DEPWS for the
acquisition of a 200 – 240-kilometre (~125 – 150-mile) 2D seismic survey in two areas over northern EP
161. The operator also commenced trucking waste fluid offsite for disposal in preparation of final
dismantling of the storage tanks.
During the quarter, Tamboran spent approximately A$0.5 million on its share of the EP 161 joint venture
activities.
EP 136, EP 143 and EP(A) 197
Tamboran 100 per cent working interest and operator
Tamboran continued with routine well monitoring and lease maintenance on the Maverick 1 well pad.
During the quarter, Tamboran spent approximately A$0.3 million on legal and other expenses.
Commercial and Corporate
Re-domiciling to the US
In mid-October 2023, Tamboran announced the intention to re-domicile the Company and its subsidiaries
from Australia to the United States of America (USA) by way of a proposed Scheme of Arrangement. On
1 December 2023, shareholders voted in favour of the decision at a Scheme Meeting. The scheme became
effective as of 7 December 2023 following the lodgement of the orders of the Federal Court with the
Australian Securities and Investments Commission.
The Board of Directors believe the decision to re-domicile the Company in the USA best positions
Tamboran for the next phase of its growth as the Company seeks to accelerate the commercialisation of
the Beetaloo Sub-Basin. Being domiciled in the USA positions Tamboran with access to deeper capital
markets where shale investors are more active and have access to lower-cost debt to support future
financing activities, and simplifies the capital structure.
Securities in Tamboran continue to be traded on the ASX via CDIs, which will allow Tamboran’s existing
shareholders and the Australian market to benefit from potential future valuation realisation in coming
years.
Tamboran progresses key pipeline agreements with APA Group
During the quarter, Tamboran announced the three formal and binding agreements with APA Group (ASX:
APA) to support the development of the Company’s Beetaloo Basin assets, including:
• an Early Development Agreement relating to the construction of a ~35-kilometre Sturt Plateau
Pipeline (SPP) that is planned to connect the proposed 40 MMcf/d Sturt Plateau Compression
Facility (SPCF) to the Amadeus Gas Pipeline (AGP), targeting an online date as early as H2 2025,
subject to achieving project milestones and executing further agreements;
• an Early Development Agreement for construction of a Beetaloo Basin to East Coast gas pipeline
that aims to deliver in excess of 500 MMcf/d of Beetaloo Basin gas into Australia’s East Coast gas
market, targeting an online date as early as 2028, subject to achieving project milestones and
executing further agreements; and
• a Partnering Agreement under which Tamboran agrees to work exclusively with APA Group and
provides an option for Tamboran to acquire up to 15 per cent of any Beetaloo pipeline projects in
the lead up to Final Investment Decision (FID) (excluding the SPP), subject to certain conditions
being met.
Under the Early Development Agreements, APA has agreed a process to continue development of the
proposed pipelines with early works expenditure of up to A$10 million on the basis that Tamboran continues
to progress and achieve agreed milestones in relation to the proposed Shenandoah South Pilot Project.
The parties will commence negotiations on a binding Gas Transportation Agreement (GTA) targeting
execution in H1 2024, subject to Tamboran achieving certain project milestones.
Tamboran enters Strategic Partnership with Liberty Energy
In December 2023, Tamboran announced it had entered into a Strategic Partnership and received a US$10
million (A$15.2 million) equity investment from Liberty, a leading North American energy services firm.
Under the Strategic Partnership, Liberty plans to import a modern frac fleet into the Beetaloo Basin in 2024
to support the stimulation campaign with industry leading operational and subsurface engineering expertise
for Tamboran’s proposed 40 MMcf/d Shenandoah South Pilot Project, which is planned to commence
production in 2026.
A$55 million equity placement and entitlement offer
In mid-December 2023, Tamboran announced the Company had successfully raised A$40.8 million via an
Institutional Placement and institutional component of the 1 for 6.2 pro rata accelerated non-renounceable
Entitlement Offer. The raise was conducted at A$0.16 per new CDI. The raise was supported by a A$7.6
million pre-commitment from the Company’s largest shareholder, Mr. Bryan Sheffield, a US$10 million
(A$15.2 million) strategic placement from Liberty and existing US and UK shareholders.
The Company announced the completion of the Retail Entitlement Offer in mid-January 2024, which raised
an additional A$14.2 million, completing a total raise of A$55.0 million. The funds from the capital raise aim
to support Tamboran’s activities, including SS-1H flow testing and purchase of long lead items, to the
sanctioning of the proposed 40 MMcf/d Shenandoah South Pilot Project during the first half of 2024.
Proposed NTLNG development Concept Select
During the quarter, Tamboran continued Concept Select Engineering studies with Wood for the Company’s
proposed NTLNG development at Middle Arm, Darwin, The Concept Select phase is expected to be
completed during the first quarter of 2024 ahead of entering pre-Front-End Engineering and Design (preFEED) during 2024. This engineering work will define and select the key LNG plant specifications including
liquefaction technology, compressor driver configuration, LNG capacity and draft facility layout on
Tamboran’s 170-hectare (440-acre) proposed LNG site in the Middle Arm Sustainable Development
Precinct near Darwin.
Tamboran Resources publishes first TCFD Climate Change Report
In December 2023, Tamboran released the Company’s first Climate Change Report (CCR). The CCR aims
to align with the Task Force on Climate-related Financial Disclosures (TCFD) framework.
The TCFD Report outlines Tamboran’s strategy to respond to climate change, achieve Net Zero equity
Scope 1 and 2 greenhouse gas (GHG) emissions from first commercial production and play a leading role
in the energy transition as a reliable supplier of natural gas.
The TCFD Climate Change Report is available on the Tamboran website.
Related Party Payments
Payments of A$1.2 million were made to related parties and their associates during the quarter, as
disclosed in Section 6 of the accompanying Appendix 5B. Payments related primarily to the sale of
materials from Sweetpea Pty Ltd to Tamboran B2 Pty Ltd in the amount of A$0.7 million (Item 6.2). The
remaining A$0.5 million in payments related to directors’ fees and Managing Director remuneration (Item
6.1).
Capital Structure
At the end of the quarter, Tamboran had total cash on hand of A$47.8 million and no debt. The current
capital structure, as at the date of this report, is as follows:
2,060,287,200 CHESS Depositary Interests 200:1
18,151,222 Options fully vested (unlisted)
36,350,000 Options unvested and subject to milestones (unlisted)
Changes to the capital structure from the previous quarter include:
• The issue of 254,905,000 New CDIs following the completion of the ~A$40.8 million Placement and
Institutional Entitlement Offer announced on 14 December 2023.
• The issue of 88,709,600 New CDIs following the completion of the ~A$14.2 million Retail
Entitlement Offer announced on 15 January 2024.
Planned Activities for March 2024 Quarter
During the March 2024 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:
• Flow testing of the SS-1H well in EP 117, including delivering of the IP30 flow test.
• Subject to Board and joint venture approvals, achieving Final Investment Decision (FID) and placing
the Long Lead Item (LLI) orders for key procurement packages for the 40 MMcf/d Sturt Plateau
Compression Facility (SPCF) at the Shenandoah South location.
• Progression of upstream planning for sanctioning of proposed 40 MMcf/d Pilot Project in EP 98/117,
including securing key approvals and drilling schedule.
• Completion of the Concept Select engineering studies for the proposed NTLNG development.
