Strategic Alliance with Helmerich and Payne, Inc
Sydney, Sep 20, 2022 AEST (ABN Newswire) - Tamboran secures a $22 million strategic investment and drilling contract from Helmerich & Payne, Inc.
Tamboran Resources Limited (ASX:TBN) (TBNNY:OTCMKTS) has entered into a strategic alliance and has secured $22 million (US$15 million) equity investment from a subsidiary of Helmerich & Payne, Inc. (H&P), (NYSE:HP), the largest drilling solutions provider in the US. The investment forms part of Tamboran's $138 million equity placement, announced on 20 September 2022.
Tamboran will utilise the proceeds from the recent equity placement to focus on the development of the Beetaloo Basin. Additionally, the strategic alliance with H&P, which has significant expertise in deep unconventional shale drilling, is expected to assist Tamboran in accelerating development drilling in the region at a reduced cost.
Tamboran has finalised a drilling contract with H&P for a super-spec FlexRig(R) for a two-year term.
The rig will mobilise into Australia for the Company's 2023 proposed drilling campaign. The drilling activity, if successful, is expected to position Tamboran for the sanctioning of the proposed Amungee Pilot Development by the end of 2023.
As part of the strategic alliance, H&P will have the right of first refusal until 2033 to provide Tamboran all subsequent rigs required to accelerate the Company's 1 billion cubic feet per day (BCFD) development plan at market rates.
Once imported into Australia, H&P's super-spec FlexRig(R), with more than 2,000 horsepower and one-million-pound hookload, will be one of Australia's most powerful onshore drilling rigs.
Capable of drilling more than 4,000-metre horizontal sections within the Mid-Velkerri "B Shale", the rig is expected to support a material reduction in cost per unit of recoverable gas and minimize the environmental footprint.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
"We are extremely excited to work with H&P to bring one of the largest US onshore drilling and service providers into the Beetaloo Basin. The strategic alliance with H&P, alongside their $22 million equity investment in Tamboran, aims to bring unrivaled US unconventional expertise and knowledge into the development of our significant low-CO2 natural gas resource and materially reduce costs. The equity investment reflects H&P's confidence in the quality and focus of Tamboran's assets and operational team.
"We look forward to working together with H&P as we progress the development of the proposed Amungee Pilot Development, which aims to supply approximately 100 terajoules per day of low-CO2 gas to Australia's East Coast gas market by the end of calendar year 2025."
John Lindsay, H&P's President and CEO commented, "We are excited about our investment in Tamboran as well as the opportunity to work with the company to unlock the potential in the Beetaloo Basin. Our strategic alliance creates a win-win scenario. H&P supporting Tamboran's development plans in the Northern Territory, while at the same time executing on H&P's strategy to gain more international exposure, utilising our FlexRig(R) fleet, technology and drilling expertise to develop unconventional resources outside the US."
About Tamboran Resources Limited
Tamboran Resources Ltd (ASX:TBN) is a natural gas company that intends to play a constructive role in the global energy transition towards a lower carbon future by developing low CO2 unconventional natural gas resources in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran's key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197 which are located in the Beetaloo Sub-basin.
Tamboran Resources Limited