On July 31, 2024, Tamboran Resources Corp (NYSE: TBN; ASX: TBN) released its 8-K filing detailing the company's fourth quarter activities report for the period ended June 30, 2024. Tamboran Resources Corp is a gas company focused on supporting the Net Zero CO2 energy transition in Australia and Asia-Pacific through developing low CO2 unconventional gas resources in the Australian Northern Territory.
Performance and Challenges
Tamboran Resources Corp (TBN, Financial) reported significant progress in its operations, including the successful listing on the New York Stock Exchange (NYSE) and raising approximately US$82 million before fees. This capital is earmarked for the company's upcoming two-well 2024 program, which includes the longest lateral section drilled in the Beetaloo Basin to date. The company aims to replicate the impressive flow rates from the 500-meter section in the Shenandoah South 1H (SS-1H) well over an extended 3,000-meter horizontal section.
However, the company faces challenges, including the need for substantial additional capital to fund its business plan and the speculative nature of drilling activities, which involve significant costs and may not result in discoveries or additions to future production or reserves. These challenges could impact the company's ability to achieve its strategic objectives.
Financial Achievements
During the quarter, Tamboran signed a binding, long-term Gas Sales Agreement (GSA) with the Northern Territory Government (NTG) for 40 TJ per day over an initial nine-year period. The company was also granted Major Project Status for its Beetaloo Basin development, which provides significant benefits, including government support for the integrated development of the Beetaloo Basin.
Additionally, Tamboran completed its initial public offering (IPO) on the NYSE, raising gross proceeds of US$75 million before fees. The IPO was supported by a US$20 million investment from existing shareholders Sheffield Holdings, LP, and Liberty Energy. The underwriters of the IPO exercised their option to purchase an additional 308,750 shares, raising an additional US$7.4 million before costs.
Income Statement, Balance Sheet, and Cash Flow
Tamboran reported a cash balance of A$111.6 million (US$73.9 million) at the end of the quarter, with no debt. The company spent approximately A$22.7 million (US$14.9 million) during the quarter on drilling operations and expenditure on the 40 MMcf/d Sturt Plateau Compression Facility (SPCF).
| Metric | Value |
|---|---|
| Cash on Hand | A$111.6 million (US$73.9 million) |
| Quarterly Spend | A$22.7 million (US$14.9 million) |
Commentary and Analysis
"Tamboran successfully delivered on several key milestones during the quarter, including the highly anticipated NYSE listing. Tamboran raised approximately US$82 million (before fees), which is expected to fund our upcoming two well 2024 program, which includes the longest lateral section drilled in the Beetaloo Basin to date." - Joel Riddle, Managing Director and CEO
The company's strategic focus on the Beetaloo Basin and Middle Arm developments, supported by strong government backing, positions it well for future growth. The successful flow testing of the SS-1H well and the planned drilling of the SS-2H and SS-3H wells are critical to demonstrating the production profile for 10,000-foot lateral sections within the Mid Velkerri B Shale.
Overall, Tamboran Resources Corp (TBN, Financial) has made significant strides in its operational and financial performance, setting a strong foundation for future growth. The company's ability to secure substantial funding and government support underscores its potential in the oil and gas industry.
Explore the complete 8-K earnings release (here) from Tamboran Resources Corp for further details.
