Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has made significant strides in its planned A$71.4 million capital raising to expedite the development of its gas projects in the Beetaloo Basin in the Northern Territory.
Firstly, the company has received binding commitments from new and existing shareholders for a A$53.2 million non-underwritten placement, underscoring investor confidence in Tamboran’s growth prospects.
In addition to the placement, the company has signed a binding Heads of Agreement (HOA) with US-based Helmerich & Payne for a 5-year convertible note worth US$9 million, subject to shareholders approval.
Lastly, a share purchase plan (SPP) on the same terms as the placement has been offered to existing shareholders at $0.18 per share for a total of about A$5 million.
Much needed funds
Funds from the capital raising will provide Tamboran with the necessary resources to accelerate drilling activities in the Beetaloo Basin as well as fulfil the farm-in commitments relating to the Origin transaction in 2022 for a 38.75% interest in EPs 76, 98 and 117.
Additionally, they will enable the company to book initial 2C gas resources over the Shenandoah South area, marking a significant milestone in its growth trajectory.
It will also allow Tamboran to undertake clean-up activities at the Amungee 2H as well as commence drilling operations at the Shenandoah South 1H and Amungee 3H wells in EP 117 and 98, respectively.
Step closer to commercialisation
“Tamboran’s $71.4 million capital raise brings the company one step closer to commercialisation of our acreage in the Beetaloo Basin and funds several key milestones that are expected to unlock this vast, low reservoir CO2 gas resource,” Tamboran Resources managing director and chief executive officer Joel Riddle said.
“We are fully focused on delivering commercial flow rates from the Shenandoah South and Amungee areas.
De-risking of these two areas provides us with optionality for initial production via mini-LNG, as early as 2024, and the proposed pilot development, targeting first production by the end of 2025.
“Tamboran recently entered into exclusive agreements with Clean Energy Fuels Australia that could support production from either of these locations.
“The capital raise also supports Tamboran’s growth ambitions to supply Beetaloo gas into the East Coast gas and global LNG markets.
“This ambition is backed by two key announcements, a strategic partnership with the midstream pipeline provider, APA Group (ASX:APA), and non-binding MoUs with BP (LON:BP) and Shell (LON:RDSa), two of the world’s largest LNG portfolio trading and energy companies.
“Tamboran aims to play a key role as being part of the solution to supporting both the Australian domestic gas market and the Asia Pacific as economies move away from coal-fired power during the energy transition.”