Tamboran Resources Corporation has secured up to US$198 million through a combination of public and entitlement offers to fund expanded drilling and resource delineation in the Beetaloo Basin, aiming for first gas sales by Q3 2026.
- US$103 million raised via underwritten public offer at US$35 per share
- Institutional entitlement offer raised approximately US$60 million
- Retail entitlement offer planned to raise up to US$19 million, partially underwritten
- Funds to support drilling in Pilot Area, Orion Acreage, BCDA, and EP 161 acreage
- RBC Capital Markets and E&P Capital Pty Limited acting as joint lead managers and underwriters
Capital Raise Details and Structure
Tamboran Resources Corporation (NYSE/ASX:TBN) announced a capital raise targeting up to US$198 million to accelerate its activities in the Beetaloo Basin, Northern Territory. The raise comprises a registered underwritten public offer that has already secured US$103 million (A$147.1 million) at an offer price of US$35.00 per share of Common Stock, alongside an institutional entitlement offer which raised approximately US$60 million (A$86 million). A retail entitlement offer is scheduled to open on April 13, 2026, aiming to raise up to US$19 million (A$27 million), with partial underwriting support of A$24 million (US$17 million).
The underwritten public offer includes an option for underwriters to purchase an additional 443,491 shares. The institutional entitlement offer was conducted on a 1 for 10 pro rata accelerated non-renounceable basis and was supported by both new and existing institutional shareholders. The retail entitlement offer will be offered to eligible retail securityholders in Australia, New Zealand, and certain other jurisdictions, excluding the United States.
Use of Proceeds and Operational Outlook
Proceeds from the capital raise are earmarked to fund additional drilling in the Pilot Area, resource delineation in the Orion Acreage and Beetaloo Central Development Area (BCDA), as well as drilling activities in the EP 161 acreage. Funds will also support working capital and general corporate purposes. Tamboran’s CEO Todd Abbott highlighted that the company is entering its most active two-year period in the Beetaloo Basin, with first gas sales expected in the third quarter of 2026 and ongoing resource delineation across its acreage.
Tamboran holds approximately 1.9 million net prospective acres, making it the largest acreage holder in the Beetaloo Basin. The company’s development plans include potential production increases beyond the contracted 40 terajoules per day supply to the Northern Territory Government. Joint venture partners involved in the basin include Daly Waters Energy (DWE), INPEX, and Santos (ASX:STO), with farmout acreage within the Orion Block also subject to ongoing processes.
Underwriting and Offer Timetable
RBC Capital Markets and E&P Capital Pty Limited are acting as joint lead managers and underwriters for the entitlement offers. The retail entitlement offer is partially underwritten up to A$24 million, with sub-underwriting agreements covering approximately 90% of the expected retail offer size. The underwriting agreement contains detailed termination rights for the underwriters, including provisions related to regulatory compliance, market conditions, and corporate events.
The timetable for the equity raise includes the retail entitlement offer opening on April 13, 2026, and closing on April 27, 2026. Settlement and issuance of new shares and CHESS Depository Interests (CDIs) are scheduled through early May, with trading expected to commence shortly thereafter.
Strategic Context and Market Position
This capital raise follows Tamboran’s recent public offering launch to fund Beetaloo Basin drilling, reflecting a coordinated effort to accelerate development activities across multiple acreage blocks. The company’s focus on the Beetaloo Basin aligns with its strategy to contribute to energy security in the Northern Territory, Australia, and the broader Asia-Pacific region. The planned first gas sales in late 2026 and ongoing drilling campaigns underscore Tamboran’s commitment to advancing its natural gas resources amid a complex regulatory and operational environment.
In a broader market context, Tamboran’s capital raise and development plans come amid increasing attention to energy security and regional gas supply. The company’s progress, including its recent public offering to fund Beetaloo Basin drilling, will be closely watched by investors and stakeholders given the scale of investment and operational milestones targeted.
Bottom Line?
The success of Tamboran’s retail entitlement offer and execution of its drilling program will be key to advancing its development timeline and realising value from the Beetaloo Basin.
Questions in the middle?
- What level of subscription will the retail entitlement offer achieve given it is only partially underwritten?
- How will Tamboran manage operational and regulatory risks inherent in accelerating drilling activities?
- What are the implications for regional gas supply if Tamboran successfully increases production beyond contracted volumes?