Tamboran Raises US$55.4M PIPE at US$17.74 to Fund Key Wells for Mid-2026 Gas
Tamboran Resources has raised US$55.4 million through a private placement to fund critical drilling activities in the Beetaloo Basin, aiming for first gas production by mid-2026.
- US$55.4 million PIPE at US$17.74 per share with 15% discount
- Initial US$44.4 million tranche closing May 16, 2025
- Funds to drill three remaining wells for Shenandoah South Pilot Project
- Target plateau production of ~40 MMcf/d (19 MMcf/d net to Tamboran)
- First gas expected mid-2026, pending approvals and weather
Tamboran's Capital Raise to Accelerate Beetaloo Development
Tamboran Resources Corporation has announced a significant capital injection of US$55.4 million through a private investment in public equity (PIPE) aimed at advancing its Shenandoah South Pilot Project in Australia's Beetaloo Basin. The placement, priced at US$17.74 per share, a 15% discount to the recent closing price, reflects strong investor confidence in Tamboran's strategy to unlock natural gas production in this emerging energy region.
The initial tranche of US$44.4 million is expected to close imminently, by May 16, 2025, with the remaining US$11 million contingent upon shareholder approval and customary closing conditions. This phased approach balances the urgency of funding ongoing drilling with governance safeguards.
Drilling and Production Milestones in Sight
With the capital secured, Tamboran plans to drill and complete three remaining wells critical to reaching a plateau production rate of approximately 40 million cubic feet per day (MMcf/d), with around 19 MMcf/d net to the company. These wells are part of the Shenandoah South Pilot Project, a key asset in the Beetaloo Basin, which Tamboran operates with a significant acreage position.
Tamboran's CEO, Joel Riddle, highlighted that first gas production is targeted for mid-2026, subject to weather conditions and regulatory approvals. This timeline positions Tamboran to contribute meaningfully to Australia's natural gas supply landscape within the next 18 months.
Operational Progress and Testing Update
Operationally, Tamboran has commenced flow testing on the SS-2H sidetrack well following a soaking period designed to optimize fracture permeability. The company expects to announce initial flow test results (IP30) in June 2025, which will be closely watched as an indicator of the project's commercial viability.
Additionally, funds from the PIPE will support the Sturt Plateau Compression Facility, a vital infrastructure component, until financing terms with lenders are finalized. This integrated approach underscores Tamboran's commitment to ensuring operational readiness alongside drilling activities.
Investor Support and Strategic Backing
The PIPE transaction was notably supported by existing shareholders and Formentera Partners, an investment entity founded by Bryan Sheffield, signaling strong insider confidence. BofA Securities acted as the sole placement agent, facilitating the capital raise in a competitive market environment.
Looking ahead, Tamboran's ability to execute on its drilling program and secure necessary approvals will be critical to sustaining momentum. The Beetaloo Basin remains a focal point for Australia's energy future, and Tamboran's progress will be a bellwether for the sector.
Bottom Line?
Tamboran’s successful capital raise sets the stage for a pivotal drilling campaign that could redefine its production profile by mid-2026.
Questions in the middle?
- Will the June flow test results confirm the commercial viability of the SS-2H sidetrack well?
- How will shareholder approval impact the timing and completion of the remaining US$11 million tranche?
- What are the risks and timelines associated with regulatory approvals and weather dependencies for first gas?
