Tamboran Resources Ltd. said it will issue 5,027,430 shares this week in another fundraising effort for its Beetaloo Basin project in Australia.
The share purchase plan, an ordinary placement aimed at existing investors, is priced at $0.12 (AUD 0.18) per unit, for a total of $593,000 (approximately AUD 905,000). Tamboran has sought regulatory approval for the securities, which have already been subscribed, to be listed on the Australian Stock Exchange (ASX), according to documents filed this week.
The issuance is part of the gas developer’s program to raise capital for exploration and development at its 1.9 million net acreage at Beetaloo in Australia’s Northern Territory, which it says is its main wallet
Tamboran had already placed 288,995,504 ordinary shares at the same price, raising $34 million (almost AUD 52.02 million), as announced by Tamboran on July 4.
It has received commitments for a further 6,638,886 ordinary shares, also at a price of 0.18 AUD per share, as the second tranche of the placement under the capital raising campaign, subject to the approval of the shareholders Tamboran investors will decide whether to approve the tranche, which would raise $779,000 (more than AUD1.19 million), at the company’s next general meeting, it said in an ASX filing on Monday.
Announcing the capital increase on June 27, Tamboran also said it has signed binding heads of agreement for a convertible note (CN) of up to $9 million, subject to shareholder approval, to complement the placement of two tranches and the share purchase plan. The agreement with drilling company Helmerich & Payne Inc. “expected to cover the cost of mobilizing H&P’s super spec FlexRig Flex 3 platform in Australia in the first half of 2023.”
“This will allow Tamboran to focus on investing in drilling activities to mature resources and unlock gas in the Beetaloo Basin,” Tamboran added in the June announcement.
“Funds from the Placement, CN and SPP (together, the Capital Raise) will support drilling activity in Tamboran’s Beetaloo Basin, fully satisfy the operating commitments associated with the Origin transaction on 2022 (achieving a 38.75 percent interest in EPs 76, 98). and 117) and allow Tamboran to book initial 2C gas resources in the Shenandoah South area,” the announcement states.
The capital increase expects to raise approximately $46.76 million (AUD$71.4 million). “Upon completion of the capital increase, Tamboran will be fully funded to conduct cleanup activities on the Amungee 2H (A2H) well and drill the Shenandoah South 1H (SS1H) and Amungee 3H wells in EP. [Exploration Permit] 117 and 98, respectively,” Tamboran said.
On August 1, Tamboran and venture partner Falcon Oil & Gas Ltd. jointly announced the start of drilling for SS1H, targeting Mid-Velkerri B Shale in EP 117. Tamboran has a 38.75 percent interest and operation in EP 76, 98 and 117. while Falcon owns 22.5 percent.
SS1H is 37 miles (60 kilometers) from A2H, where the partners had already achieved a gas breakthrough.
The two companies previously said gas flow at A2H had been inhibited, but that the results showed the well could have more reserve for production.
SS1H, which has a horizontal section of 3,281 feet (1,000 meters), is 23 feet (700 meters) deeper than A2H, the joint press release said.
“The deeper reservoir in this area of the basin is expected to provide higher pressures, based on data from the two Tanumbirini wells operated by Santos in EP 161,” the statement said. Tamboran owns 25 percent of EP 161 while Santos Ltd. has the remaining 75 percent.
On June 22, Falcon and Tamboran announced: “The A2H well achieved gas breakthrough, however, modeling and independent third-party analysis from a US laboratory identified a potential skin inhibiting the flow of stimulated shale gas”.
“Despite this, gas has flowed at an average rate of 0.97 mmcf/d [million cubic feet per day] over 50 days with about 10 percent of the water used in the simulation program recovered so far, well below other wells in the basin,” the partners said. [joint venture] believes that well flows have not yet established a 30-day initial uninhibited production rate.”
The well was producing about 830,000 cubic feet per day with a water recovery rate of 50 barrels per day, they said.
“The hydrocarbon phases recovered are dry gas with 90.4 percent methane and 9 percent ethane,” the companies add.
“The JV believes that the results are not indicative of the underlying production potential of the Amungee Member B Shale, as the Amungee NW-IH well achieved flows of >5 mmcf/d in about 1,000 normalized meters from the same well in 2021”.
Falcon and Tamboran said they would continue to test fluid samples to determine how to clean up the suspected inhibitor.
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