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NEW YORK - Tamboran Resources Corporation (NYSE: TBN, ASX: TBN), currently valued at $314.69 million in market capitalization, and Daly Waters Energy, LP (DWE) have restructured their joint holdings in the Beetaloo Basin, with a significant acreage sale and a planned farm-down aimed at advancing gas development projects. The agreements will see DWE acquiring a non-operating interest in 100,000 acres for $15 million, while Tamboran retains a substantial portion of the basin for future development. According to InvestingPro analysis, Tamboran maintains a healthy balance sheet with more cash than debt, though the company is currently experiencing rapid cash burn.
The finalized checkerboard arrangement between the two companies results in Tamboran holding approximately 1.9 million net acres in the Beetaloo Sub-basin, with a focus on supplying gas to Australia’s East Coast market. The company has identified a Phase 2 Development Area of 406,693 acres north of the Pilot Area, where it plans to concentrate its efforts. With analyst price targets ranging from $31 to $53, significantly above the current trading price, market experts appear optimistic about the company’s development strategy. Discover more detailed analyst forecasts and 7 additional key insights with InvestingPro.
Ownership stakes in the northern Pilot Area, crucial for initial gas production in the Northern Territory, remain unchanged, with Tamboran maintaining a 47.5% operating interest. The southern Pilot Area, anticipated for expansion, will see Tamboran holding a 38.75% interest. Both companies will continue to work together on the Pilot Area, particularly on the Shenandoah South Pilot Project.
Tamboran has also initiated a formal farm-down process, conducted by RBC Capital Markets, for the Phase 2 Development Area. This process is set to begin following the release of the IP30 flow test from the Shenandoah South 2H sidetrack well, expected in June 2025. DWE will have rights to participate in any transaction on equal terms.
The announcement underscores Tamboran’s strategy to delineate gas resources to support its Phase 2 strategy and its ambition to become a major gas supplier. The company’s recent funding is projected to back drilling activities required for initial production by mid-2026, pending regulatory approvals.
This strategic move by Tamboran and DWE highlights the ongoing efforts to optimize resource development in the Beetaloo Basin and meet the increasing gas demand forecasted for the latter part of the decade. The transaction is subject to customary conditions, including regulatory approvals and approvals from Tamboran shareholders and the Formentera Australia Fund, LP’s Limited Partner Advisory Committee.
The information reported is based on a press release statement from Tamboran Resources Corporation.
In other recent news, Tamboran Resources Corporation has secured approximately $55.4 million through a Private Investment in Public Equity (PIPE) to fund its drilling projects. This capital will support the drilling and completion of three additional wells for the Shenandoah South Pilot Project in the Beetaloo Basin, with the first gas production anticipated by mid-2026. The company plans to begin drilling in mid-2025, focusing on cost and operational efficiencies. BofA Securities served as the sole placement agent for the PIPE, which will also cover expenses for the Sturt Plateau Compression Facility and provide general working capital.
Additionally, Tamboran has announced the appointment of Jeff Bellman as a Non-Executive Director to its Board. Bellman’s extensive experience in investment management, particularly in the global public oil and gas sector, is expected to enhance the Board’s capabilities. He will also serve on the Audit & Risk and Sustainability Committees. The company has also secured approximately 420 acres of land at the Middle Arm Sustainable Development Precinct in Darwin for its proposed NTLNG project. These developments align with Tamboran’s ongoing efforts to advance its operational and sustainability objectives.
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