Highlights
• During the quarter, Tamboran completed a 35-stage stimulation campaign of the Shenandoah
South 2H sidetrack (SS-2H ST1) well across a 5,483-foot (1,671-metre) horizontal section.
• The SS-2H ST1 well was suspended for a longer duration of “soaking” following technical
analysis of wells in the Beetaloo Basin and studies undertaken in the US. The well was soaked
for a total of 62 days prior to the re-opening of the well in mid-May 2025.
• In May 2025, Tamboran announced a Private Investment in Public Equity (PIPE) to raise US$55.4
million (pre-fees) at a price of US$17.74 per share of Common Stock, representing a 15% discount
to the closing price on May 12, 2025.
• Tamboran signed a binding agreement to finalize the checkerboard of the joint acreage position
across EPs 76, 98 and 117. In parallel, Tamboran and Daly Waters Energy, LP (DWE) have entered
into a binding agreement whereby DWE will acquire a non-operating and non-controlling interest
in 100,000 acres within two areas for a consideration of US$15 million. The transaction is subject
to certain conditions precedent and regulatory approvals.
• Tamboran has reserved 406,693 gross acres as the Phase 2 Development Area, where Tamboran
is expected to hold 236,370 net acres (58.12% operated interest). Tamboran has engaged RBC
Capital Markets to commence a formal farmout process of the acreage.
• On completion of funding, Tamboran expects to be fully funded to drill and complete the
remaining three wells required to deliver first gas under the proposed ~40 MMcf/d (~19 MMcf/d
net Tamboran) Shenandoah South (SS) Pilot Project.
• Tamboran plans to drill three wells commencing in mid-2025 to supply gas to the proposed SS
Pilot Project. Following the drilling, Tamboran will stimulate four wells (the SS-3H well and the
three wells drilled in 2025) under a single campaign to maximize cost and operational efficiencies
planned for late 2025/1H 2026, subject to JV approval.
• As at March 31, 2025, the Company had a cash balance of US$25.6 million, with pro forma cash
to US$96.0 million following the completion of the PIPE and acreage sale.
Tamboran Resources Corporation’s Chief Executive Officer, Joel Riddle said:
“Having successfully raised funding to progress drilling activity in the Beetaloo Basin, we are focused on
delivering the largest single drilling campaign in the region to date. The program includes three wells drilled
from the SS2 pad, commencing in mid-2025, and stimulation of up to 240 stages across four 10,000-foot
horizontal wells. These wells are going to be critical for meeting the binding Gas Sales Agreement with the
Northern Territory Government that will supply much needed gas to Darwin to keep the lights on.
“The SS-2H ST1 well commenced flow testing in mid-May 2025, which is being tested for a full 90-days
over a 5,483-foot (1,671-metre) horizontal section. We plan to update the market on the initial 30-day flow
test (IP30) in mid-June 2025.
“Importantly, we also completed the checkerboard of the Beetaloo Basin with DWE, allowing us to prioritize
a position of ~400,000 acres (the Phase 2 Development Area) for development of gas to Australia’s East
Coast gas market, which is forecast to be short gas by the end of the decade. RBC Capital Markets has
been engaged to undertake a formal farmout of the Phase 2 Development Area. We look forward to
engaging with interested parties and will provide an update to the market at the appropriate time.”
Proposed Northern Pilot Area
Tamboran 47.5 per cent working interest in 20,309 acres and operator1
In January 2025, Tamboran commenced the stimulation of the SS-2H ST1 and SS-3H wells in the proposed
Northern Pilot Area. The SS-2H ST1 well completed stimulation activities over 35 stages across a 5,483-
foot (1,671-metre) horizontal section, delivering average proppant intensity of 2,706 lb/ft. This exceeded
all previous completion activities in the Beetaloo Basin to date and achieved wellhead injection rates above
100 barrels per minute (bpm).
Tamboran commenced “soaking” of the SS-2H ST1 well in March 2025. Soaking is a process whereby
once an initial clean-up period is done to dehydrate the fractures as much as possible, the shut-in (“soaking”
period) allows the remaining water to imbibe into the rock, increasing the formation’s relative permeability
to gas.
The SS-2H ST1 well was re-opened to commence flow testing in mid-May 2025 and is planned to be tested
over a full 90-day period to understand the decline curve of the well.
Following the completion of the capital raise, Tamboran expects to be fully funded to drill and complete the
remaining three further wells (SS-4H, 5H and 6H) to deliver first gas to the proposed ~40 MMcf/d (~19
MMcf/d net Tamboran) SS Pilot Project. First gas production is planned for mid-2026, subject to weather
and customary regulatory approvals.
All three wells planned for the 2025 campaign will be drilled with the Helmerich & Payne, Inc. (NYSE: HP,
H&P) rig over a 10,000-foot (3,048-metre) horizontal section and four wells, including the SS-3H well,
stimulated using the Liberty Energy completions equipment (NYSE: LBRT) with up to 60 stages each.
The first of the three wells, SS-4H, is planned to commence drilling in mid-2025. Tamboran received
notification that Falcon will not participate in the three well campaign, which will result in Tamboran
increasing acreage in the proposed Northern Pilot Area following completion of the wells.
EP 161
Santos 75 per cent working interest and operator, Tamboran 25 per cent working interest
During the quarter, the operator progressed the McArthur 2D seismic processing program which is
scheduled for completion by 2Q 2025.
The Northern Territory Government approved an application to vary the current EP 161 minimum work
program for Term 2. The variation was necessary on account of the McArthur 2D seismic program falling
short of the required 200km acquisition commitment due to adverse conditions experienced when
executing the survey program.
EP 136, EP 143 and EP(A) 197
Tamboran 100 per cent working interest and operator
During the quarter, the operator applied for a suspension, extension, and variation of minimum work
program for Term 2 in EP 143. Under the variation Tamboran would be required to acquire 2D seismic and
drill a stratigraphic well in 2026 and 2028, respectively. No activity was undertaken on the EP 136 acreage
during the period.
Commercial and Corporate
PIPE offer raised US$55.4 million (pre-fees)
In May 2025, Tamboran announced it had entered into subscription agreements to issue approximately 3.1
million shares of Common Stock in a PIPE to institutional investors. Tamboran expects to receive gross
proceeds of approximately US$55.4 million from the PIPE, before deducting placement agent fees and
other offering expenses.
The PIPE was conducted at a price of US$17.74 per share of Common Stock, representing a 15% discount
to the closing price of US$20.87 per share on Monday May 12, 2025.
The initial US$44.4 million of the PIPE is expected to close on Friday May 16, 2025, subject to the
satisfaction of customary closing conditions. The closing of the remaining US$11.0 million is subject to
approval by Tamboran’s shareholders and the satisfaction of other customary closing conditions.
The transaction was supported by US$10 million from Formentera Partners, an entity founded by Bryan
Sheffield and was backed by Tamboran’s existing shareholders.
Checkerboard of Beetaloo JV assets with Daly Waters Energy, LP
In May 2025, Tamboran and DWE (100% owned by Formentera Australia Fund, LP) signed a binding
agreement to finalize the checkerboard of the joint acreage position across EPs 76, 98 and 117.
Under the process, Tamboran and DWE selected acreage, resulting in each party holding regions at a
77.5% owned and operated working interest (Falcon hold the remaining 22.5% non-operating interest).
Ownership of the proposed northern Pilot Area, the focus for initial gas production in the Northern Territory,
remains unchanged (Tamboran 47.5% operator, DWE 47.5% and Falcon 5%) with expansion into the
southern Pilot Area (Tamboran 38.75%, DWE 38.75% operator and Falcon 22.5%) anticipated in
accordance with the terms of the acreage sale.
Acreage sale to Daly Waters Energy, LP
In conjunction with the checkerboard, Tamboran and DWE have entered into a binding agreement whereby
DWE will acquire a non-operating and non-controlling interest across 100,000 acres within two areas of
Tamboran’s post-checkerboard acreage position for a consideration of US$15 million. These areas include
a 19.38% interest (78,817 net acres) in the Phase 2 Development Area and a 9.67% interest (21,183 net
acres) in the proposed RL10 Area.
The transaction is subject to certain conditions precedent including, and not limited to, DWE obtaining
approval from the Formentera Australia Fund, LP’s Limited Partner Advisory Committee, Tamboran
shareholder approval and regulatory approvals.
Proposed Phase 2 Development Area farmout
Tamboran has reserved 406,693 gross acres (236,370 net acres) as the Phase 2 Development Area,
located immediately north of the proposed Pilot Area, where Tamboran plans to focus development on
supplying gas into Australia’s East Coast domestic gas market.
On completion of the sale to DWE, Tamboran is expected to hold 236,370 net acres (58.12% operated
interest) over the Phase 2 Development Area, with DWE (19.38%) and Falcon Oil & Gas (Australia) Limited
(Falcon) (22.5%) holding the remaining interest.
Tamboran has engaged RBC Capital Markets to commence a formal farm-down of the Phase 2
Development Area. The formal process will commence on release of the IP30 flow test from the SS-2H
ST1 well, planned for June 2025. DWE will have participation rights to any transaction on the same terms.
Non-binding LOI signed with Arafura for potential gas supply to Nolans Rare Earth Project
In March 2025, Tamboran entered into a non-binding Letter of Intent (LOI) with a wholly owned subsidiary
of Arafura Rare Earths Limited (ASX: ARU) to progress discussions for potential gas supply from
Tamboran’s Beetaloo Basin assets to Arafura’s Nolans Rare Earth Project in the Northern Territory.
Under the agreement, Arafura intends to support the development of Tamboran’s Beetaloo Basin acreage
by purchasing 18 – 25 terajoules per day (TJ/d) (~18 – 26 MMcf/d) of gas for up to 10 years.
Arafura’s Nolans Rare Earth Project is located 404 miles (650 kilometres) south of Tamboran’s Beetaloo
Basin acreage. Arafura’s proposed downstream rare earth processing facility is situated adjacent to the
existing Amadeus Gas Pipeline (AGP).
Non-binding LOI signed with Linde Inc. for helium supply from proposed NTLNG project
Tamboran and Linde Inc., a leading global industrial gases and engineering company, have entered into a
LOI to commence negotiations of a helium purchase and supply agreement covering the potential future
supply of helium byproduct from Tamboran's proposed NTLNG at Middle Arm.
Capital Structure
At the end of the quarter, Tamboran had total cash on hand of US$25.6 million and no debt. The current
capital structure, as at the date of this report, is as follows:
1,396,123,400 CHESS Depositary Interests 200:1
18,151,222 CDI Options fully vested (unlisted)
36,350,000 CDI Options unvested and subject to milestones (unlisted)
7,556,157 Common Stock
Changes to the capital structure from the previous quarter include:
• Conversion of 343,331,000 117CDIs to Common Stock 1,716,655 increase in Common Stock).
This announcement was approved and authorized for release by Mr. Joel Riddle, the Chief
Executive Officer of Tamboran Resources Corporation.