TBN - Tamboran Resources

[System]

Tamboran Resources Limited is a public natural gas company that specialises in development of unconventional gas in the Northern Territory, Australia. It was incorporated in Victoria on 10 February 2009 and is headquartered in Sydney, Australia.

Tamboran's key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136 which are located in the Beetaloo Sub-basin in the Northern Territory, Australia.

The Beetaloo Sub-basin is an area of approximately 28,500 km2 that is considered to be highly prospective for unconventional gas. The Beetaloo Sub-basin is a structural component of the Greater McArthur Basin in the Northern Territory, located about 500 kilometres south-east of Darwin, Northern Territory and is recognised as a close analogue to some of the most productive unconventional gas basins in North America.

It is anticipated that TBN will list on the ASX during June 2021.

Tamboran Resources — Next Generation E&P Company.

Tamboran Resources Corporation is a public natural gas company with a vision of supporting the Net Zero CO2 energy transition.

www.tamboran.com

 

[Dona Ferentes]

Listing date	23 June 2021 11:00 AM AEST ##
Company contact details	https://www.tamboran.com/ Ph: +61 2 9977 6522
Principal Activities	Natural gas exploration
GICS industry group	TBA
Issue Price	$0.40
Issue Type	Ordinary Fully Paid Shares
Security code	TBN
Capital to be Raised	$66,000,000
Expected offer close date	11 June 2021
Underwriter	Fully underwritten. MST Financial Services Pty Limited (Underwriter and Lead Manager)

 

[Faramir]

I am tipping TBN for October tipping comp.

Here is their latest announcement made 2 September:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02416761_PS-2A1320841?access_token=83ff96335c2d45a094df02a206a39ff4

Highlights
• Tanumbirini 3H Well (“T3H”) in EP 161 in the Beetaloo Sub-Basin spudded on 23 August 2021.
• T3H is currently ahead of schedule with the completion of the surface vertical hole section at 1,080 metres.
• Forward plan is to drill the vertical and angle build section to approximately 3,800 metres, prior to drilling approximately 1,000 metres horizontal section in the primary target of the Mid-Velkerri ‘B’ shale.
• Tanumbirini T2H (“T2H”) and T3H Wells targeted to be fracture stimulated and flow tested prior to year-end 2021.

 

[Faramir]

Here is the chart. Natural Gas. Something should make it go up next month. It listed at $0.40. Maybe it will go past it’s listing price next month.

 

[Dona Ferentes]

NT gas play Tamboran Resources has launched a $133 million equity raising, with proceeds pegged to pay Origin Energy for an acquisition and for drilling.

Which, for a $150M market cap company, may prove to cause indigestion

 

[Dona Ferentes]

Tamboran and one of its investors Sheffield will jointly pay $60 million to acquire the three Beetaloo Basin permits from Origin Energy with a royalty on future production included.

Tamboran has committed to solely fund the remaining Origin stage 3 farm-in commitments, including drilling two horizontal wells, which is expected to cost another $80 million.

The purchase would make Tamboran the leading player in the Beetaloo Basin in terms of net acres, contingent gas resources and prospective gas resources.

 

[Dona Ferentes]

The deal involves Origin selling their 77.5% interest in the Beetaloo assets to a Tamboran-operated JV for an upfront cash consideration of $60 million as well as a 5.5% royalty on future production from the three permits. In addition, Origin and the Tamboran JV have entered into a binding 10-year Gas Sales Agreement (GSA) for up to 36.5 Petajoules per annum.

Figure 1: Tamboran Resources: New and existing assets

The deal was accompanied by a capital raising of A$138 million for Tamboran. The proceeds will be used to fund the $60 million upfront payment to Origin as well as fund the original Origin Farm-in commitments (Stage 3 Planned Work Programme) which include the drilling of the two Amungee horizontal wells at a cost of approximately A$40 million.
....
There will be a big shift in Tamboran’s Resource position given Origin’s exploration activity to date and it potentially enables Tamboran to move towards development decisions more swiftly than before. The acquisition will increase Tamboran’s Net 2C Contingent gas resources by 268% to nearly 1.5 trillion cubic feet (TCF) and increase their Net Unrisked Prospective Gas Resources by 370% to 147 TCF.

Figure 2: Contingent Gas Resources

Figure 3: Unrisked Prospective Gas Resources

Overall, the acquisition appears to be a significant positive for Tamboran. With the firming up of gas supply agreements with Origin as well as the strategic drilling hook up with Helmerich & Payne, Tamboran looks now to be on track to be the Beetaloo’s first producer of commercial gas.

(not for me)

 

[houtman]

TBN to IPO in the US @ US$24, with the 200-1 CDI it works out at about 18c on the ASX, which is the current price.

TBN has recently been awarded Major project status by the NT(labor) government.

In part-
Highlights
• Major Project Status provides Tamboran with significant benefits, including;
− NT Government acknowledgement of the Beetaloo Basin’s significance to the Territory’s
economic prosperity,
− regulatory approval process mapping, and
− a dedicated project case manager to assist with coordinated and streamlined
communications within Government.
.
It's a shame that Origin gave this away, there are some large numbers in the Beetaloo.

 

[houtman]

@mullokintyre

3rd pick for 2025

TBN (listed in US with 200-1 CDI's on asx) is a major holder and developer of the Beetaloo Basin, "one of the largest undeveloped gas resources in the world"

As above, the previous NT labor Gov gave them major project status, the current Gov also approves.
Agreements in place with APA for pipe connection.

They are about to start the 30 day tests on the 2 recently completed wells.

They are forecasting a 3 stage development.

1st stage, supply Darwin with gas because of this situation -

2nd stage, supply East coast with gas because of this situation -

3rd stage is an export terminal.

It's an expensive drawn out business with plenty of operational risks and there may be more court challenges ahead, but I think most east coast politicians would find this project more palatable than one in their own backyards.

 

[houtman]

@mullokintyre

Feb update.

Tamboran commenced their Beetaloo Basin SS-2H and SS-3H stimulation campaign on 24th January.

The previous SS-1H campaign was 27/11/23, and completed 7/12/23.
IP30 results were announced 26/2/24.

If a similar timeline we can expect IP30 results(30 day flow test) about 24th April.

They also announced an MOU with SANTOS to progress studies for Darwin LNG expansion.

 

[houtman]

TBN announced completion of the SS-2H well this morning, they sound happy with how it went.

Next is the SS-3H well stimulation followed by flow tests.

 

[houtman]

This is an informative video.

It doesn't cheerlead (ignore the video's title), just a straightforward history of the Beetaloo along with the potential.

 

[houtman]

@mullokintyre

March update -
No material announcements this month.

Their last presentation suggested IP30 results for SS-2H in April (targeting >10.7MMcf/day )and SS-3H mid 2025 (targeting >19MMcf/day).

IP30 results will give an indication of how many wells required for the 40MMcf/day contract with the NT govt and also an indication of requirements for 1 BCF/day to east coast.

For a comparison, I believe WDS produced about 194 million barrels of oil equivalent (MMboe) in 2024, so a daily gas equivalent of just over 3 BCF/day.

Long way to go.

 

[Sean K]

Analysis of drilling results from the enormous Beetaloo gas deposit in the Northern Territory shows that low-cost non-nuclear energy can now transform the nation in just over two years.

It should become a late centre-stage election issue. Both parties can win from the development but Opposition Leader Peter Dutton could combine the gas breakthrough with a one-year extension of his current one-year petrol rebate policy.

The combination of a two-year petrol rebate and Beetaloo gas means lower-cost energy over three years and beyond. While the additional excise reduction cost will be around $6bn, it has a clear end.

Lower petrol costs are a great boost for outer suburban and rural areas. In inner affluent suburbs Dutton has unbelievably ignored the ALP’s so-called “saver’s tax” – the tax on unrealised capital gains.

Again, recent developments can make this a red hot issue. Whether an apparently moribund Coalition is able to change direction is an unknown.

The latest drilling results from the giant Beetaloo deposit show that with government policy innovation, the energy outlook in Australia can be transformed by August 2027, just over two years away. For Dutton, it means he can offer Australians a totally different short and long-term energy price outlook.

....

The prime minister after May 3 should step in and notify the Beetaloo partners led by ASX-listed Tamboran Resources that if the accelerated drilling between May and July confirms the latest analysis, the government will guarantee gas supplies to justify an immediate start to the pipeline and also guarantee the distributors that the gas will be available.

In suggesting this strategy earlier this month, I conceded that this was a radical action with a degree of risk, but nations take such actions in a crisis and the risk is acceptable.

If a conventional path is embraced where each stage is locked in with total certainty, the gas will not be available until 2028-29 – a potential disaster for the nation.

 

[countrylad]

We need to see a lot more from TMB and the other explorers in the area before we can bet Australia's future (well the east coast anyway), there is a lot that can go wrong with this area and success is not guaranteed but is likely to happen.

Whatever we should have a domestic reservation on the extracted molecules.

 

[houtman]

@mullokintyre

April update.

Nearing the end of the month and nothing of note announced by TBN.

The IP30 results for SS-2H should be imminent, targeting >10.7MMcf/day.

Flow rates will help indicate the number of wells required to meet production targets, and allow some basic NPV's to be announced.

Waiting.

 

[houtman]

May 2025 stock pick.

TBN should be announcing their 30day flow test(IP30) soonish.

I'd expect the announcement to be after the election.

There's a few interested parties, NT Gov needs gas, APA ready to pipe, East coast needs gas.

O & G is generally fairly quiet atm, so will require an exceptional flow rate to get the market excited.

 

[houtman]

May 2025 stock pick.

TBN should be announcing their 30day flow test(IP30) soonish.

I'd expect the announcement to be after the election.

There's a few interested parties, NT Gov needs gas, APA ready to pipe, East coast needs gas.

O & G is generally fairly quiet atm, so will require an exceptional flow rate to get the market excited.

@mullokintyre

May update.

IP30 results now reported to be due mid June.
Testing will then continue for 90 days(IP90).

Tamboran raised $ during the month, they should now be fully funded to deliver 40 MMcf/d to the Proposed SS Pilot Plant.

The flow rates will give an indication of the number of wells required for field development.
Each well currently costs over $20m, so NPV will vary dependent on flow rates.

 

[houtman]

TBN's IP30 results were released on Monday, the price had hardly moved during the 30days so no surprise at the result.

They had targeted >10.7MMcf/d but tested at 7.2MMcf/d.
The NPV will take a hit.

They have announced this as "a Beetaloo Basin record average 30-day initial production (IP30) flow rate ", however when normalized over 10,000ft it is lower than the earlier 1H well.

A disappointing result, and for me, disappointing reporting.

They had talked up their abilities and processes and yet here we are.



They will continue the test for 90 days(IP90) to test decline rates.

 

[countrylad]

The IP90 is what you need to know, and you need this for all of their wells, thats when Mr or Ms Market will make up their mind. I have been watching closely and while do not have a position I may take one on the future and it will before the first IP90 results.