December 2023 Quarterly Activities Report
Sydney, Jan 31, 2024 AEST (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (TBNNY:OTCMKTS) successfully completed the 10-stage stimulation program over a 500-metre (1,640-foot) horizontal section of Mid Velkerri B Shale within the Shenandoah South 1H (SS-1H) well in Beetaloo Basin exploration permit EP 117. Flow back commenced in January 2024 and the Company is on track to announce 30-day initial production (IP30) flow rates in Q1 2024.
Diagnostic fracture injection test (DFIT) of the Mid Velkerri B Shale in SS-1H demonstrated an over pressured regime, with a pore pressure gradient of at least 0.54 pounds per square inch (psi) per foot, in line with results demonstrated at Tanumbirini (0.51 - 0.56 psi per foot).
The Company announced a Strategic Partnership and received a US$10 million (A$15.2 million) equity investment from Liberty Energy Inc. (NYSE:LBRT) (Liberty), a leading North American energy services firm. Liberty plans to import a modern frac fleet into the Beetaloo Basin in 2024.
Tamboran and APA Group (ASX:APA) signed three agreements for the development of the Beetaloo Basin: an Early Works Agreement to develop a pipeline to connect the proposed Sturt Plateau Compression Facility (SPCF) to the Amadeus Gas Pipeline; an Early Works Agreement to develop a large diameter pipeline to connect Tamboran's acreage in the Beetaloo Basin to the East Coast gas grid; and an enduring Partnering Agreement.
Tamboran's Security holders voted in favour to redomicile the Company in the USA via a Scheme of Arrangement. Securities remain listed on the ASX via CHESS Depository Interests (CDIs).
The Company successfully raised A$55 million via an Institutional Placement and Entitlement Offer on a 1 for 6.2 basis at A$0.16 per CDI. The placement was supported by a A$7.6 million investment from the Company's largest shareholder, Mr. Bryan Sheffield, and existing shareholders.
As at 31 December 2023, the Company had a cash balance of A$47.8 million. Tamboran received an additional A$14.2 million in January 2024 relating to the Retail Entitlement Offer.
Tamboran Resources Corporation Managing Director and CEO, Joel Riddle said:
"The second quarter has seen significant activity as we progress towards our proposed Pilot Project in the deeper section of the Mid Velkerri B Shale at Shenandoah South. The successful stimulation program at SS-1H was carried out in December 2023 and we look forward to announcing IP30 flow rates from the well during the first quarter of 2024.
"The Company successfully raised A$55 million from our existing shareholders and new strategic partner Liberty Energy, a highly regarded onshore energy services firm. The funding is expected to support our activities and purchase of long lead items until the sanctioning of the proposed Shenandoah Pilot Project.
"Finally, we advanced key commercial agreements with APA Group in the form of three signed agreements for the development of the Beetaloo Basin. Our strategic partnerships with APA Group, Liberty Energy and Helmerich & Payne strongly position the Company to accelerate the development of our significant Beetaloo Basin acreage position to initially support both the Northern Territory and East Coast gas markets, which are both expected to be short of gas during the decade."
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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.