Tamboran Resources Limited buys Origin’s Beetaloo Basin assets and raises equity


Sydney, Australia (ABN Newswire) – Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNNY) announces the acquisition of Beetaloo assets from Origin Energy, funded by placement and strategic partnerships to raise up to $195 million .

Strong points

– Tamboran and Bryan Sheffield (Sheffield) have agreed to jointly acquire (50% each) Origin Energy’s (Origin) 77.5% interest in three Beetaloo Basin permits (EP 98, 117 and 76) through the through a joint venture (the JV) for an initial cash consideration of $60 million plus a future production royalty.

– Tamboran becomes the largest acreage holder in the Beetaloo Basin with approximately 1.9 million net potential acres, resulting in an approximately 270% increase in Tamboran’s estimate of net 2C contingent gas resources at approximately 1.5 trillion cubic feet (TCF).

– The JV has entered into a binding 10-year Gas Sales Agreement (GSA) for up to 36.5 PJ per year (18.3 PJ net per year for Tamboran) with Origin, the leading energy distributor in Australia.

– The acquisition will be funded through an institutional placement to new and existing shareholders to raise up to $138 million (before fees) at $0.21 per share, representing a discount of 22 .2 and 18.2% to the company’s closing price and five-day VWAP, respectively, on Wednesday, September 14, 2022.

– The institutional placement included a $98 million private equity placement to strategic partners and leading U.S. investors, backed by investments of $30 million from Sheffield and $22 million from Helmerich and Payne (H&P).

– The placement has been structured in two tranches, with the second tranche being submitted for shareholder approval at a general meeting to be held on Tuesday, October 25, 2022.

– Tamboran intends to launch a share purchase plan (SPP) allowing existing shareholders to participate on the same terms as the placement at $0.21 per share, targeting $3.0 million.

– Tamboran’s major shareholders, representing more than 50% of the common shares eligible to vote, intend to vote in favor of the placement, including Tamboran’s Board of Directors and major shareholder, Longview Petroleum (19 .6%).

– Immediate near-term catalysts include the drilling of Maverick 1V (M1V) in EP 136, currently underway, and two Amungee wells scheduled to commence in October 2022. Initial production rates for the two Amungee wells are expected to be announced early in the schedule year 2023.

Managing Director and CEO of Tamboran Resources Limited, Joel Riddle said:

“The acquisition of the Beetaloo assets from Origin is transformational for Tamboran and our shareholders, positioning the company as the largest acreage holder in the basin. This allows Tamboran to set the tone
development, which will focus on accelerating initial production and generating cash flow from acreage around the Amungee area. Commercialization of gas at Amungee is backed by a binding 10-year GSA with Origin and the previously announced Memorandum of Understanding with Jemena, which secured Tamboran’s access to the Northern Gas Pipeline, the only pipeline currently linking the Northern Territory to the east coast of Australia.

“Tamboran will jointly acquire the Beetaloo Basin assets from Origin with Bryan Sheffield, the founder, president and CEO of the unconventional E&P Parsley Energy in the United States, which was acquired by Pioneer Natural Resources in January 2021 for approximately $7.5 billion. Mr. Sheffield is the Founder and Managing Partner of Formentera Partners, a private oil and gas company, and invests through his wholly owned entity, Daly Waters Energy, LP. Tamboran will assume operations and will work with Mr. Sheffield to further de-risk the pool.Sheffield’s total investment of $82 million includes a base equity investment of $30 million in the placement.

“H&P, the largest land driller in the United States, has invested $22 million in the placement. Having Sheffield and H&P join Tamboran in the Beetaloo brings additional unconventional American expertise and capital to the region. Working working closely, we intend to focus on accelerating the pace of activity through improved well design and operational efficiencies, which should improve development economics.

“The acquisition of Origin’s assets secures the JV a binding GSA with Origin, a major energy distributor and one of the largest suppliers on the East Coast. Under the GSA, the JV will provide Origin up to 36.5 PJ per year (18.3 PJ per year net to Tamboran) for 10 years, providing the JV with a short-term pathway to cash flow.Alongside the recently announced Memorandum of Understanding with Jemena, which provides access to the Northern Gas Pipeline, the Origin GSA should support our ambition to supply low carbon dioxide gas to the Australian East Coast gas market.

“Tamboran remains absolutely committed to operating sustainably. We intend to build on the deep relationships with traditional owners, pastoralists, other local stakeholders and the Northern Territory Government that have been fostered by Origin in the Beetaloo during its substantial multi-year exploration and evaluation. The Company is committed to working constructively and transparently in all interactions as we seek to support local businesses, jobs and interests as member of the community.

“The company’s vision of playing our part in the global transition to a low-carbon economy through the production of low-CO2 natural gas resources also remains unchanged. Our goal is to become a low-carbon gas producer. net zero carbon emissions for our equity share of Scope 1 and Scope 2 emissions when the company begins selling natural gas by integrating renewables and carbon offsets into any development.

“Thank you to everyone who supported Tamboran’s placement, who made this transformational acquisition possible. This is truly an exciting time for the company as we seek to prove a world-class gas resource. -Natural Gas CO2 on the Australia’s east coast gas market and global LNG markets over the next decade. I look forward to sharing the progress of our drilling activity over the coming months in due course.

Bryan Sheffield said:

“I believe this tiered resource game has the potential to replicate the Permian and be one of the solutions to addressing the global energy crisis. I am delighted to partner with Tamboran and H&P, in m ‘partnering with a leading operator and one of the best drilling companies in the world to develop this area.”

Terms of acquisition of Origin Energy’s Beetaloo assets The JV (50% owned by Tamboran and 50% by Sheffield) will acquire Origin’s 77.5% stake and operator role in three blocks in the Beetaloo (EP 98, 117 and 76) effective July 1, 2022. Acquisition of Beetaloo assets from Origin Energy subject to regulatory approval, waiver of pre-emption rights and other customary conditions .

To view the terms of the transaction, please visit:

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 to a low carbon future by developing low carbon unconventional natural gas resources. CO2 in the Beetaloo sub-basin in the Greater McArthur Basin in the Northern Territory of Australia. Tamboran’s principal 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


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