Purchase of Origin's Beetaloo Basin Assets and Equity Raise
Purchase of Origin's Beetaloo Basin Assets and Equity Raise

Sydney, Sep 20, 2022 AEST (ABN Newswire) - Tamboran Resources Limited (ASX:TBN) (TBNNY:OTCMKTS) announces acquisition of Origin Energy's Beetaloo Assets, funded through a placement and strategic partnerships to raise up to ~$195 million.


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

- Tamboran becomes the largest acreage holder in the Beetaloo Basin with ~1.9 million net prospective acres, resulting in a ~270 per cent increase in Tamboran's estimate of net 2C contingent gas resources to ~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 annum (18.3 PJ per annum net to Tamboran) with Origin, Australia's leading energy retailer.

- The acquisition will be funded through an institutional placement to new and existing shareholders to raise up to $138 million (before costs) at $0.21 per share, representing a 22.2 and 18.2 per cent discount to the Company's closing price and five-day VWAP, respectively, on Wednesday 14 September 2022.

- The institutional placement included a $98 million Private Placement of shares to strategic partners and US cornerstone investors, supported by investments of $30 million by Sheffield and $22 million by Helmerich and Payne (H&P).

- The placement has been structured in two tranches, with the second tranche subject to shareholder approval at a General Meeting to be held on Tuesday, 25 October 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 over 50 per cent of the Ordinary Shares who are entitled to vote, intend to vote in favour of the Placement, including Tamboran's Board and largest shareholder, Longview Petroleum (19.6% interest).

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

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

"The acquisition of Origin's Beetaloo assets is transformational for Tamboran and our shareholders, positioning the Company as the largest acreage holder in the Basin. This allows Tamboran to set the pace
of development, which will involve a focus on accelerating initial production and cash flow generation from the acreage around the Amungee area. Commercialisation of the gas at Amungee is supported by a binding 10-year GSA with Origin and the previously announced Memorandum of Understanding with Jemena, which secured Tamboran access to the Northern Gas Pipeline, the only pipeline currently connecting the Northern Territory to Australia's East Coast.

"Tamboran will jointly acquire Origin's Beetaloo Basin assets with Bryan Sheffield, the Founder, Chairman and CEO of US unconventional E&P Parsley Energy, which was acquired by Pioneer Natural Resources in January 2021 for ~US$7.5 billion. Mr. Sheffield is the Founder and Managing Partner of Formentera Partners, a private oil and gas firm, and is investing through his wholly owned entity, Daly Waters Energy, LP. Tamboran will assume operatorship and work with Mr. Sheffield to further de-risk the Basin. Sheffield's total $82 million investment includes a cornerstone equity investment of $30 million in the placement.

"H&P, the largest onshore driller in the United States, has invested $22 million in the placement. Having Sheffield and H&P join Tamboran in the Beetaloo brings additional US unconventional expertise and capital to the region. Working together closely, we intend to focus on accelerating the pace of activity through improved well designs and operational efficiencies, which are expected to improve development economics.

"The acquisition of Origin's assets secures the JV a binding GSA with Origin, a leading energy retailer and one of the largest suppliers on the East Coast. Under the GSA, the JV will supply Origin with up to 36.5 PJ per annum (18.3 PJ per annum net to Tamboran) for 10 years, providing the JV with near-term pathway to cash flow. Alongside the recently announced Memorandum of Understanding with Jemena, which allows access to the Northern Gas Pipeline, the Origin GSA is expected to support our ambition to supply lowcarbon dioxide gas to Australia's 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 over its substantial, multi-year exploration and appraisal program. The Company is committed to working constructively and transparently in all interactions as we seek to support businesses, jobs and local interests as a member of the community.

"The Company's vision for playing our part in the global transition to a lower carbon economy through the production of low CO2 natural gas resources also remains unchanged. Our objective is to become a Net Zero carbon emissions gas producer for our equity share of Scope 1 and Scope 2 emissions when the Company commences commercial sales of natural gas by integrating renewable energy and carbon offsets into any development.

"Thank you to everyone who has supported Tamboran's placement, who have made this transformational acquisition possible. This is truly an exciting time for the Company as we look to prove up a world-class gas resource. We expect Beetaloo gas will deliver affordable, low-CO2 natural gas to 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 next few months in due course.

Bryan Sheffield said:

"I believe this multi-stacked resource play has the potential to replicate the Permian and be one of the solutions to address the global energy crisis. I'm thrilled to partner with Tamboran and H&P, teaming up with a top-tier operator and one of the best drilling companies in the world to develop this play."

Terms of the acquisition of Origin Energy's Beetaloo assets The JV (which is 50% owned by Tamboran and 50% owned by Sheffield) will acquire Origin's 77.5% interest and operatorship in three Beetaloo Basin blocks (EP 98, 117 and 76) with an effective date of 1 July 2022. The acquisition of Origin Energy's Beetaloo assets is subject to regulatory approval, waiving of pre-emptive rights and other customary conditions.

To view the terms of the transaction, please visit:

About Tamboran Resources Limited

Tamboran Resources LtdTamboran 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.



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