Tamboran Resources Corporation (OTC:TBNRF, ASX:TBN) has priced its New York Stock Exchange (NYSE) initial public offering (IPO) of 3,125,000 shares of common stock at a price to the public of US$24.00 per share for gross proceeds of US$75 million.
Shares will begin trading on the NYSE on June 27, 2024, under the ticker symbol TBN with the offering expected to close on June 28, 2024, subject to customary closing conditions.
The raising was well supported by US$20 million from existing shareholders Sheffield Holdings, LP, an affiliate of Bryan Sheffield, and Liberty Energy.
Use of proceeds
Proceeds will fund ongoing drilling activities for the proposed Shenandoah South Pilot Project in the Beetaloo Basin of Australia’s Northern Territory.
They will help fund the drilling, completion and infrastructure requirements to reach plateau rates from the proposed pilot project for which Tamboran is targeting a final investment decision (FID) in mid-2024.
Additional capital will fund the proposed Northern Territory LNG pre-FEED activities, other Beetaloo Basin activities and general working capital.
READ: Tamboran Resources launches New York Stock Exchange Initial Public Offering at US$24-27 per share
BofA Securities, Citigroup and RBC Capital Markets are acting as joint book-running managers for the proposed offering. Johnson Rice & Company and Piper Sandler are acting as co-managers for the proposed offering.
Tamboran Resources has granted the underwriters a 30-day option to purchase up to an additional 468,750 shares of its common stock at the initial public offering price, less underwriting discount.
The company’s shares of common stock, represented by CDIs, will also continue to trade on the Australian Securities Exchange (ASX). Each CHESS Depository Interest (CDI) represents 1/200th of a share of the company’s common stock.
“Greater reflection of value”
"The US market has deep knowledge of the development of shale gas resources and a long history of supporting gas companies to fund their developments,” Tamboran Resources managing director and CEO Joel Riddle said.
“Our Board of Directors believes the US listing will deliver Tamboran shareholders a greater reflection of the value of Tamboran’s assets.
“The IPO is expected to fund Tamboran’s next six wells in the Beetaloo Basin, which will all be drilled to approximately 10,000 feet (3,000 metres) and are planned to deliver gas to the Northern Territory Government via the company’s proposed 40 million cubic feet per day (MMcf/d) Shenandoah South Pilot Project.”