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NEW YORK - Tamboran Resources Corporation (NYSE: TBN, ASX: TBN), currently valued at $315 million and trading at $20.87, has announced the signing of subscription agreements for a Private Investment in Public Equity (PIPE), securing approximately $55.4 million in funding. The agreements involve the issuance of around 3.1 million shares of Common Stock to institutional investors at a price of $17.74 per share, a 15% discount from the closing price on May 12, 2025. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though it’s currently experiencing rapid cash burn.
The initial tranche of $44.4 million is expected to close on Friday, with the remaining $11 million contingent on shareholder approval and other standard closing conditions. The company has also committed to filing a registration statement for the resale of the PIPE shares.
This capital raise is aimed at supporting the drilling and completion of three additional wells required for the Shenandoah South (SS) Pilot Project in the Beetaloo Basin, anticipated to produce first gas by mid-2026, pending weather and regulatory approvals. Tamboran expects to begin drilling in mid-2025, with a focus on cost and operational efficiencies. The company maintains a healthy current ratio of 1.77, with InvestingPro analysis indicating a "Fair" overall financial health score of 2.08 out of 5.
Flow testing of the SS-2H sidetrack well has begun after an extended soaking period, with results expected to be disclosed in June 2025. Tamboran plans to drill three new wells this year, conduct a stimulation campaign in late 2025 or the first half of 2026, and test flow one well post-stimulation, with the rest to be prepared for production.
BofA Securities served as the sole placement agent for the PIPE. The funding will also cover the Sturt Plateau Compression Facility’s expenses and provide general working capital.
Joel Riddle, CEO of Tamboran, expressed gratitude to the shareholders for supporting the PIPE and conveyed anticipation for the company’s operational activities in the second half of 2025 and the delivery of first gas in mid-2026.
This strategic move aligns with Tamboran’s operational update, which includes the soaking process of the SS-2H ST1 well since March 2025, enhancing the formation’s permeability to gas. The company plans to conduct a 90-day flow test to assess the well’s decline curve.
Tamboran Resources Corporation, with a significant presence in the Beetaloo Sub-basin, is positioned to become a major player in the Australian natural gas market, with plans for a Northern Territory LNG project in progress. The information in this article is based on a press release statement from Tamboran Resources Corporation.
In other recent news, Tamboran Resources Corporation has announced the appointment of Jeff Bellman as a Non-Executive Director to its Board. Bellman brings a 33-year career in investment management, with notable experience in the global public oil and gas sector. His previous role as Managing Director at Nuveen Investments, a TIAA-CREF company, highlighted his expertise in managing equity portfolios and building relationships with management teams. This strategic appointment coincides with Tamboran’s preparations for the first production from its Beetaloo Basin assets. Chairman Dick Stoneburner expressed confidence in Bellman’s ability to enhance the Board’s capabilities, particularly in financing the commercialization of the company’s assets. Bellman will also serve on the Audit & Risk and Sustainability Committees, contributing his financial and sector-specific insights. Tamboran Resources is expanding its operations, having secured approximately 420 acres of land at the Middle Arm Sustainable Development Precinct in Darwin for the proposed NTLNG project. Pre-FEED activities for this project are currently being conducted by Bechtel Corporation.
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