Tamboran consolidates Beetaloo Basin holdings and secures US$70.4 million in funding for pilot development

Tamboran Resources Corporation has finalised a key acreage transaction and secured the cash to advance its gas development activities in the Beetaloo Basin, Northern Territory.

Checkerboard agreement

The company announced the completion of a checkerboard agreement with Daly Waters Energy, LP (DWE), aligning joint interests across exploration permits EP 76, 98 and 117.

As part of the deal, DWE will acquire a non-operating and non-controlling interest in 100,000 acres for US$15 million.

Once it wraps up, Tamboran will retain some 1.9 million net prospective, development-ready acres in the basin, with a 58.12% operated stake over the designated Phase 2 Development Area.

“The additional capital, raised through the PIPE and the asset sale to Daly Waters allows us to be fully funded to drill and complete the three remaining wells that are expected to support production of appraisal gas reaching ~40 MMcf/d at our proposed Shenandoah South Pilot Project in mid-2026,” CEO Joel Riddle said.

“The three well drilling program is planned to commence in mid-2025 and will allow continuous operations until the end of 2025 to support cost efficiency.

“The SS-2H ST1 well, which has been soaking since mid-March, 2025, has now commenced flow testing. We are on track to announce the IP30 flow result in June 2025.

“We thank our shareholders for their support in the PIPE and look forward to a busy 2H 2025 and delivery of first gas from our operations in mid-2026.”

Search for a strategic partner

Tamboran has also launched a formal farm-down process for this area, engaging RBC Capital Markets to identify a strategic partner.

“We have engaged RBC Capital Markets to progress a farm down of acreage to carry Tamboran through the delineation of gas resources to underpin our Phase 2 strategy,” Riddle continued.

“Tamboran and DWE will continue working together on the pilot area, where we are focused on the development of the proposed 40 MMcf/d Shenandoah South Pilot Project.

“Tamboran’s recently secured funding is expected to support the drilling activities required to reach initial production in mid-2026, subject to weather and customary regulatory approvals.

“DWE will also participate in our Phase 2 Development Area and we look forward to continuing to work with DWE on progressing our joint ambition to be a major gas supplier to the East Coast gas market at a time when the market is anticipating a shortfall at the back end of the decade.”

The process will begin following the release of flow test results from the Shenandoah South 2H sidetrack well (SS-2H ST1), expected in June 2025.

DWE retains rights to participate in any transaction on equivalent terms.

In parallel, Tamboran announced a US$55.4 million Private Investment in Public Equity (PIPE) placement, issuing 3.1 million shares of common stock to institutional investors at a 15% discount to recent trading prices.

The first tranche of US$44.4 million is expected to close on May 16, with the remaining US$11 million subject to shareholder approval.

Proceeds from the capital raise will fund the drilling and completion of three additional wells to support the ~40 million cubic feet per day (MMcf/d) Shenandoah South Pilot Project.

First gas is targeted for mid-2026 and Tamboran plans to initiate drilling in mid-2025, followed by a single-stage stimulation campaign to maximise operational efficiencies.

Flow testing of the SS-2H ST1 well commenced in May following a soaking period, with results from the 30-, 60- and 90-day intervals to be reported progressively.

Following these activities, Tamboran will hold a majority interest across multiple Beetaloo assets, including a 77.5% operated stake in ex-EPs 76, 98 and 117, and full ownership of EP 136.