Tamboran Resources (TBN) Q1 2025 earnings summary

Executive summary

• Completed drilling of Shenandoah South 2H (SS-2H) well to 20,669 feet in 35 days, the longest horizontal well in the Beetaloo Basin, with a sidetrack (SS-2H ST1) required due to a mechanical issue and achieving record drilling rates.

• Geological data from SS-2H and SS-2H ST1 confirm strong gas shows, contiguous Mid Velkerri Shale, and no faulting.

• Drilling of SS-3H well is scheduled for November 2024, with both SS-2H ST1 and SS-3H to undergo major stimulation campaigns in 1Q 2025.

• Liberty Energy's US-style frac fleet, the largest in Australia, mobilized for optimized stimulation and efficiency gains.

• Ongoing development of local sand mine to reduce well costs and support future drilling.

Financial highlights

• Cash balance as of September 30, 2024, was US$74.0 million (AUD 82 million), adjusted to US$81.6 million after rig sale proceeds in October.

• Sale of US drilling rig generated US$8.5 million (pre-fees), offsetting higher drilling costs for the SS-2H sidetrack.

• Net loss for Q3 2024 was $5.9 million, with operating expenses rising to $7.0 million.

• Approximately AUD 19 million invested in drilling two wells during the quarter.

• Fully funded to deliver IP30 flow rates for both wells by end of Q1 2025.

Outlook and guidance

• On track to deliver IP30 flow rates for SS-2H ST1 and SS-3H wells in 1Q 2025, subject to weather and regulatory approvals.

• First gas from the pilot project targeted for 1H 2026, with facility and pipeline construction to commence after approvals in 2H 2025.

• Estimated $70 million investment required for development plans through June 2025.

• Further announcements on midstream capital sourcing and binding transportation agreements expected in future quarters.