Tamboran Opens A$27 Million Retail Entitlement Offer to Accelerate Beetaloo Drilling

Retail Entitlement Offer Targets A$27 Million

Tamboran Resources Corporation (ASX:TBN, NYSE:TBN) has kicked off the retail leg of its ongoing capital raising, inviting eligible retail securityholders to subscribe for new CHESS Depositary Interests (CDIs) at A$0.25 each. The offer opened on April 13 and will close at 5:00pm Sydney time on April 27, 2026, aiming to raise up to A$27 million. This retail entitlement offer follows a successful institutional entitlement offer and a US public offering that collectively raised approximately US$163 million (A$233 million).

The retail offer is partially underwritten to the tune of A$24 million by joint lead managers RBC Capital Markets and E&P Capital Pty Limited, with two institutional sub-underwriters committing to cover around 90% of the expected retail raise. Eligible retail securityholders can also apply for additional CDIs up to 50% of their entitlement under an oversubscription facility, although allocations will be scaled if demand exceeds available shares.

Tamboran’s chairman Dick Stoneburner highlighted the strategic importance of this capital raise to accelerate development activities across the Beetaloo Basin, including drilling in the Pilot Area, resource delineation in the Orion Acreage and Beetaloo Central Development Area (BCDA), as well as participation in drilling programs in the EP 161 acreage with joint venture partner Santos.

Capital Raise Complements US$103 Million Underwritten Offering

The retail entitlement offer builds on the company’s recent US$103 million underwritten public offering of common stock priced at US$35 per share. This offering, combined with the institutional entitlement offer that raised approximately US$60 million, forms a comprehensive equity raise totalling about US$198 million (A$280 million). The underwritten offering includes a 30-day option for underwriters to purchase an additional 443,491 shares, providing Tamboran with further capital flexibility.

New shares issued under the underwritten offering were placed within the company’s existing placement capacity and are expected to settle on April 9, 2026, with trading commencing shortly thereafter. The institutional entitlement offer settled on April 15, with new shares and CDIs expected to commence trading on April 16.

Notably, the offer price for the retail entitlement offer is set at A$0.25 per CDI, reflecting a 22.8% discount to the last traded price of US$45.34 per share on the NYSE on April 7, 2026, and a 24.1% discount to the five-day volume weighted average price. This pricing aims to incentivize participation while balancing dilution concerns.

Use of Proceeds to Accelerate Beetaloo Development

Funds raised from the equity raise will be directed towards key growth initiatives in the Beetaloo Basin. Tamboran plans to increase production above approximately 40 million cubic feet per day (MMcf/d) into the Northern Territory gas market, advance resource delineation in the Orion acreage, and fund development activities in the BCDA, where a farmout arrangement with Daly Waters Energy (DWE) and INPEX is underway. The company will also participate in drilling two wells in the EP 161 acreage alongside Santos.

These activities underpin Tamboran’s strategy to deliver first gas sales from the Shenandoah South Pilot Project by the third quarter of 2026, with potential for production expansion in 2028. The capital raise supports working capital needs and other general corporate purposes, reflecting the company’s ambition to become a leading supplier in the Australian and Asia-Pacific gas markets.

Underwriting and Allocation Details

The retail entitlement offer is non-renounceable, meaning entitlements cannot be traded or transferred. Eligible retail securityholders holding CDIs as at the record date of April 9, 2026, are entitled to subscribe for one new CDI for every 10 existing CDIs held. The company has implemented an allocation policy designed to spread additional CDI allocations under the oversubscription facility and shortfall offer to a broad base of investors, while ensuring no single investor increases their voting power above 20%.

Securityholders who do not participate in the offer will see their holdings diluted. The company notes that no securityholder is expected to increase their relevant interest above 20% as a result of this entitlement offer. Related parties, including directors, are not entitled to participate in the shortfall offer.

Investors should be aware of the regulatory and legal restrictions associated with the offer. The new CDIs and underlying shares of common stock have not been registered under the US Securities Act and cannot be offered or sold to US persons except in exempt transactions. The company has implemented transfer restrictions and market procedures to ensure compliance during a six-month distribution compliance period.

Investor Considerations and Risks

Tamboran cautions investors that the offer is speculative given the early stage of development and the inherent risks in gas exploration and production. The company’s financial position and future performance depend on successful drilling outcomes, regulatory approvals, market conditions, and the ability to secure infrastructure and commercial contracts.

Potential investors should carefully consider the risk factors outlined in the company’s investor presentation and filings, including operational, regulatory, environmental, and market risks. The company also highlights the importance of consulting professional advisers before participating in the entitlement offer.

This retail entitlement offer follows the group’s recent capital raising activities detailed in the Tamboran Resources Raises Up to US$198 Million announcement, which provides further context on the scale and strategic rationale of the equity raise.