First gas from Tamboran Resources’ Shenandoah South pilot project is expected in mid-2026, with the company successfully raising $85 million for the project through a Private Investment in Public Equity (PIPE) arrangement.
The company announced that it has entered into subscription agreements to issue approximately 3.1 million shares of Common Stock in a PIPE to institutional investors.
Tamboran Resources said it expects to receive gross proceeds of approximately $85 million from the PIPE, before deducting placement agent fees and other offering expenses.
Having secured funding, Tamboran Resources plans to drill three wells commencing in mid-2025 to supply gas to the proposed project. Following the drilling, the company will stimulate four wells (the Shenandoah South-3H well and the three wells drilled in 2025) under a single campaign to maximise cost and operational efficiencies planned for late 2025.
One well is planned to be flow tested following the stimulation campaign, with the remaining wells being cased and “soaked” ahead of production in mid-2026.
Tamboran Resources’ financial position has been further strengthened through a checkerboarding acreage agreement with Daly Waters Energy and the acquisition by Daly Waters Energy of a non-operating interest in 100,000 acres of Beetaloo acreage, valued at $15 million.
Through the arrangement, Daly Waters Energy will also become an operator of acreage in the Beetaloo Sub-basin, which will further advance development in the Northern Territory.
Tamboran Resources has also commenced IP30 (30-day initial production) flow testing at its Shenandoah South 2H sidetrack well (SS-2H ST1), with results expected in June 2025. The results will provide critical data for further investment decisions and underline the production capacity of the Beetaloo Sub-basin.
The Northern Territory Government said together, the PIPE funding and Daly Waters agreement represent a significant vote of confidence in the long-term development of the Beetaloo and the growing role of the Northern Territory in delivering cleaner, more affordable and more secure energy solutions to Australia and the region.
Gerald Maley, Northern Territory Minister for Mining and Energy, said the Territory Government is proud to back Tamboran Resources’ progress and welcome the new investment into the Beetaloo.
“Every milestone like this brings us one step closer to delivering more gas to Territory homes and businesses, creating local jobs, and boosting long-term royalty revenue to fund vital services and infrastructure,” Maley said.
“The gas produced from the Beetaloo will be the fuel that drives our energy security and underpins the Territory’s economic recovery.
“Importantly, royalties from the Beetaloo, calculated at 10 per cent of the gross value of gas at the wellhead, will deliver long-term economic returns for Territorians.”
Joel Riddle, Tamboran Resources Corporation Chief Executive Officer, said, “We thank our shareholders for their support in the PIPE and look forward to a busy 2H 2025 and delivery of first gas from our operations in mid-2026.”
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