Beetaloo to the Big Apple: Tamboran Resource's Strategic IPO Launch on NYSE

Last month marked a historic achievement for Tamboran Resources as it became the first non-U.S. energy company since 2014, and the first non-revenue E&P firm since 2009, to go public on the New York Stock Exchange. This Australian natural gas exploration and production company is strategically expanding in the Beetaloo Basin, one of the world's most promising shale gas fields located about 300 miles southeast of Darwin in the Northern Territory of Australia. Tamboran's IPO success is largely attributed to its substantial acreage position, significant gas resource base, and proximity to Asia—the world's fastest-growing gas market. This strategic positioning resonates with the growth strategies of large international E&Ps that are keen to tap into the Asian markets.

Strategic Positioning and U.S. Market Selection

Tamboran's strategic decision to list on the NYSE was driven by several factors. Joel Riddle, Managing Director at Tamboran, highlights, “In the US, there is a general acknowledgment from the investment community that gas will continue to be required over the medium to long term, not only for energy but in chemicals and manufacturing.” This expertise and familiarity with the sector are vital as Tamboran navigates the complexities of developing the Beetaloo Basin. Furthermore, Tamboran has partnered with proven US shale operators, Helmerich & Payne (H&P) and Liberty Energy, who have taken an equity interest in Tamboran for alignment, also giving the company recognition that it is focused on developing the Beetaloo Basin to US standards.

Utilization of IPO Proceeds

The funds raised through the IPO are earmarked for significant development within the Shenandoah South Pilot Project. Specifically, the capital will advance the drilling of two wells 10,000 foot lateral wells using Helmerich & Payne’s FlexRig® and stimulate them across 60 stages with Liberty Energy’s frac fleet. Scheduled to commence drilling in Q3 2024 with stimulation by early Q4, Tamboran anticipates announcing flow tests by early 2025. Additionally, the IPO proceeds will support crucial infrastructure developments, such as processing facilities and civil works essential for the Shenandoah South Pilot Project, with discussions already underway for the divestiture of these infrastructure assets. This strategic deployment of capital also includes advancing the 6.6 MTPA NTLNG project into pre-FEED studies during Q3 2024.

Next Generation Energy Company: Commitment to Sustainability

As a next-generation E&P company, Tamboran is committed to the Net Zero CO2 Energy Transition, focusing on developing low CO2 gas resources. From the outset, the company plans to integrate advanced technologies and sustainable practices into its operations. Joel Riddle elaborates, “Tamboran has a unique opportunity to develop a new gas basin from the bottom up, incorporating technology and methods to reduce emissions in our initial design. This includes integrating renewable energy, batteries, CCS, low-emission technology, and high-quality carbon offsets into any development with the objective of becoming a Net Zero scope 1 and 2 emissions gas producer.” Tamboran is ideally positioned to contribute CO2 to regional CCS projects, which are crucial for new project sanctioning. Located in an area with optimal conditions for solar power generation, Tamboran is poised to leverage renewable energy extensively, ensuring its operations minimize environmental impact while maintaining robust gas production.

Tamboran Resources' debut on the New York Stock Exchange marks a significant milestone not just for the company but also for the global energy sector. By securing a place in one of the world's largest capital markets, Tamboran is poised to leverage its substantial natural gas resources to meet the growing energy demands of Asia while adhering to stringent environmental standards. The IPO not only reflects the continuing allure of traditional energy resources but also highlights a shift towards more sustainable practices within the industry. As Tamboran advances its projects, particularly in the Beetaloo Basin, its journey offers a promising blueprint for integrating traditional energy production with next-generation sustainability commitments. This IPO signifies a pivotal moment in the evolution of global energy markets, where economic growth and environmental responsibility are increasingly interlinked.

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