Tamboran Resources Q3 FY25 slides show strengthened cash position, pilot project progress

Introduction & Market Context

Tamboran Resources Corporation (NYSE:TBN, ASX:TBN) presented its third quarter fiscal year 2025 results on May 14, 2025, highlighting progress in its Beetaloo Basin operations in Australia’s Northern Territory. The company’s shares closed at $20.27 on the NYSE, down 2.32% for the day, with the stock trading within a 52-week range of $15.75 to $34.50.

The presentation focused on Tamboran’s advancement toward first gas production from its Shenandoah South (SS) Pilot Project, scheduled for mid-2026, as the company positions itself to help address anticipated natural gas shortfalls in Australia’s East Coast domestic market.

Quarterly Performance Highlights

Tamboran reported successful completion of 35 stimulation stages in the SS-2H ST1 well over a 5,483-foot horizontal section. The company commenced IP90 flow testing in mid-May 2025, with IP30 flow test results expected in June 2025.

As shown in the following quarterly highlights summary:

The company has made significant progress in its "soaking" strategy, which involves shutting in wells for extended periods to improve productivity. Tamboran’s data indicates this approach has delivered material improvements in well productivity in the Beetaloo Basin.

The following chart illustrates productivity improvements observed in recent Beetaloo horizontal wells, with the SS-1H well showing a normalized gas rate of 6.4 MMcf/d per 1,000m following a 21-day soak period:

Tamboran has also achieved notable improvements in drilling efficiency. The company is targeting a spud-to-TD (total depth) time of less than 25 days for the upcoming SS-4H, 5H, and 6H wells planned for the second half of 2025.

As illustrated in this drilling progress chart comparing key Beetaloo Basin wells:

Strategic Initiatives

Tamboran’s strategic focus remains on developing its Beetaloo Basin assets in phases. The Phase 1 SS Pilot Project is on track for first gas in mid-2026, with infrastructure preparations well underway.

The company reported that pipeline and compression equipment has already been delivered to Australia ahead of construction commencement in the second half of 2025:

Beyond the initial pilot project, Tamboran is evaluating potential expansion opportunities to serve additional local Northern Territory gas demand. The company has signed a Letter of Intent (LOI) with Arafura Rare Earths Limited (ASX:ARU) targeting up to 26 MMcf/d of additional gas supply over a 10-year period.

As shown in this map of the existing pipeline network and proposed expansion:

Additionally, Tamboran has finalized a checkerboard process with its partner and is progressing toward farmout of approximately 400,000 acres in the Phase 2 Development Area. The company has engaged RBC Capital Markets to lead this formal process during the second half of 2025.

Financial Position

Tamboran significantly strengthened its financial position during the quarter and through subsequent events. The company reported a cash balance of US$25.6 million as of March 31, 2025, and completed a US$70 million capital raise in May 2025.

The following waterfall chart details the company’s cash flow and adjusted cash position:

According to the presentation, the adjusted cash balance of US$96.0 million is expected to fully fund the SS Pilot Project drilling and stimulation activities planned for 2025-2026. This includes the drilling of the remaining three wells (SS-4H, 5H, and 6H) required to deliver the targeted 40 MMcf/d from the SS Pilot Project.

Forward-Looking Statements

Tamboran outlined several key catalysts expected in the coming months, including:

• June 2025: Announcement of IP30 flow test results from SS-2H ST1
• Mid-2025: Commencement of three-well drilling program and Final Investment Decision for the SS Pilot
• Second half 2025: Construction start for Sturt Plateau Compression Facility and Sturt Plateau Pipeline
• Q4 2025-1H 2026: Stimulation of four wells and 30-day flow test of a single well
• Mid-2026: First gas from the proposed SS Pilot Project

The company also provided details on its extensive acreage position in the Beetaloo Basin, totaling approximately 1.9 million net prospective acres across various development areas:

Tamboran’s presentation emphasized its strategy to develop these resources in phases, with initial focus on the SS Pilot Project before expanding to address anticipated natural gas shortfalls in Australia’s East Coast market, estimated at approximately 1 Bcf/d by 2029-2030 according to Australian regulatory bodies.

Full presentation:

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