8-K: Tamboran Achieves Record Beetaloo Flow Rates, Secures Funding

Tamboran Resources Corporation reported record gas flow rates from its Beetaloo Basin SS-2H ST1 well, commenced a major drilling program, and secured additional funding, positioning for first gas sales by mid-2026.

Summary

• Delivered record Beetaloo Basin IP90 flow rates of 6.7 MMcf/d from the SS-2H ST1 well over a 5,483-foot horizontal section in the Mid Velkerri B Shale.
• Flow rates from the SS-2H ST1 well increased by approximately 2% over the final 30 days of testing without downhole intervention or changes to choke.
• Commenced the first batch drilling program in the Beetaloo Basin, with SS-4H and -5H wells successfully drilled to TD with 10,000-foot horizontal sections.
• Received historic approval from Native Title Holders and Northern Land Council, and Northern Territory Government (NTG) approval in September 2025, for the sale of appraisal gas to avoid flaring.
• Mr. Scott Sheffield (Former Pioneer Natural Resources Director and CEO) and Mr. Phillip Pace were appointed as Non-Executive Directors.
• Pro forma cash balance and receivables totaled US$71.1 million as of June 30, 2025, including a US$45.2 million cash balance, US$11 million from Tranche 2 of PIPE Transaction, and US$15 million from acreage sale to DWE.
• The proposed SS Pilot Project is on schedule for first gas in mid-2026, with compression and pipeline infrastructure delivered to Australia ahead of construction.
• The Sturt Plateau Compression Facility (SPCF) project was 55% complete at the end of August 2025.
• Average well cost for the batch drilling program is US$30 million, comprising US$12 million for drilling, US$16 million for stimulation, and US$2 million for extended production testing.

Sentiment

Score: 8

Explanation: The filing highlights significant operational achievements, including record flow rates and efficient drilling, alongside crucial regulatory approvals and successful capital raises. These factors substantially de-risk the project's path to first gas and demonstrate strong progress. While inherent risks of an early-stage energy project remain, the positive developments outweigh immediate concerns.

Positives

• Achieved a record Beetaloo Basin IP90 flow rate of 6.7 MMcf/d from the SS-2H ST1 well, demonstrating strong commercial deliverability.
• Observed a ~2% increase in flow rate during the final 30 days of testing for SS-2H ST1, potentially indicating significant matrix contribution and/or enhanced fracture conductivity.
• Successfully commenced the largest batch drilling program in the Beetaloo Basin, with SS-4H and -5H wells reaching TD efficiently (27 and 28 days respectively).
• Secured historic approval from Native Title Holders, Northern Land Council, and the NTG for the sale of appraisal gas, enabling commercialization and avoiding flaring.
• Strengthened the Board of Directors with the appointment of experienced industry leaders Mr. Scott Sheffield and Mr. Phillip Pace.
• Maintained a strong pro forma cash balance and receivables of US$71.1 million, providing funding for proposed Pilot Project upstream activities.
• The Sturt Plateau Pipeline (SPP) construction has commenced, and the Sturt Plateau Compression Facility (SPCF) is 55% complete, keeping the proposed SS Pilot Project on schedule for mid-2026 first gas.
• Successfully completed Tranche 1 and Tranche 2 of the PIPE transaction, raising US$55.4 million (pre-fees).
• Finalized the checkerboard of joint acreage position with Daly Waters Energy, LP, optimizing asset ownership.
• Completed the sale of a non-operating interest in 100,000 acres to DWE for US$15 million.

Negatives

• Cash outflow was used to fund SS-2H ST1 stimulation and SS-3H remediation activities.
• The company is in its early stage of development with no material revenue expected until 2026.
• Substantial additional capital is required for the business plan, which may be difficult to raise on acceptable terms.
• The strategy to deliver natural gas is contingent upon constructing additional pipeline capacity, which may not be secured.
• Absence of proved reserves and the risk that drilling may not yield natural gas in commercial quantities or quality.
• The speculative nature of drilling activities involves significant costs and may not result in discoveries or additions to future production or reserves.
• Challenges associated with importing U.S. practices and technology to the Northern Territory due to limited local experience.
• The critical need for timely access to appropriate equipment and infrastructure, which may impact market access and business plan execution.
• Operational complexities and inherent risks of drilling, completions, workover, and hydraulic fracturing operations.
• Volatility of natural gas prices and its potential adverse effect on financial condition and operations.
• Risks of construction delays, cost overruns, and negative effects on financial and operational performance associated with midstream projects.
• Potential fundamental impact on the business if assessments of the Beetaloo are materially inaccurate.
• Concentration of all assets and operations in the Beetaloo, making the company susceptible to region-specific risks.
• Recurring operational losses, negative cash flows, and cumulative net losses raise substantial doubt about the ability to continue as a going concern.
• Complex laws and regulations could affect operational costs and feasibility or lead to significant liabilities.
• Community opposition could result in costly delays and impede obtaining necessary government approvals.
• Exploration and development activities in the Beetaloo may lead to legal disputes, operational disruptions, and reputational damage due to native title and heritage issues.
• Requirement to produce natural gas on a Scope 1 net zero basis upon commencement of commercial production, with internal goals for operational net zero, which may increase production costs.
• Increased attention to ESG matters and environmental conservation measures could adversely impact business operations.

Risks

• Movements in oil and gas prices.
• Risks associated with the development and operation of the acreage.
• Exchange rate fluctuations.
• Inability to obtain funding on acceptable terms or at all.
• Loss of key personnel.
• Inability to obtain appropriate licenses, permits, and/or other approvals.
• Inaccuracies in resource estimates.
• Share market risks and changes in general economic conditions.
• Early stage of development with no material revenue expected until 2026 and limited operating history.
• Substantial additional capital required for the business plan, which may be difficult to raise on acceptable terms.
• Strategy to deliver natural gas to the Australian East Coast and select Asian markets being contingent upon constructing additional pipeline capacity, which may not be secured.
• Absence of proved reserves and the risk that drilling may not yield natural gas in commercial quantities or quality.
• Speculative nature of drilling activities, involving significant costs and may not result in discoveries or additions to future production or reserves.
• Challenges associated with importing U.S. practices and technology to the Northern Territory due to limited local experience.
• Critical need for timely access to appropriate equipment and infrastructure, which may impact market access and business plan execution.
• Operational complexities and inherent risks of drilling, completions, workover, and hydraulic fracturing operations.
• Volatility of natural gas prices and its potential adverse effect on financial condition and operations.
• Risks of construction delays, cost overruns, and negative effects on financial and operational performance associated with midstream projects.
• Potential fundamental impact on the business if assessments of the Beetaloo are materially inaccurate.
• Concentration of all assets and operations in the Beetaloo, making the company susceptible to region-specific risks.
• Substantial doubt raised by recurring operational losses, negative cash flows, and cumulative net losses about the ability to continue as a going concern.
• Complex laws and regulations that could affect operational costs and feasibility or lead to significant liabilities.
• Community opposition that could result in costly delays and impede the ability to obtain necessary government approvals.
• Exploration and development activities in the Beetaloo that may lead to legal disputes, operational disruptions, and reputational damage due to native title and heritage issues.
• Requirement to produce natural gas on a Scope 1 net zero basis upon commencement of commercial production, with internal goals for operational net zero, which may increase production costs.
• Increased attention to ESG matters and environmental conservation measures that could adversely impact business operations.

Future Outlook

Tamboran is progressing towards first production from its proposed 40 TJ/d (~39 MMcf/d) SS Pilot Project in mid-2026, with key milestones including reaching Final Investment Decision (FID) in 4Q 2025, completing SS-6H drilling, stimulating SS-4H, -3H, -5H, and -6H wells, and completing construction of the Sturt Plateau Pipeline and Compression Facility. The company also aims to complete the Phase 2 Development Area farmout in 1Q 2026 and plans to sell appraisal gas to the Northern Territory Government under a binding Gas Sales Agreement.

Management Comments

• "The fourth quarter has been a period of incredible activity for Tamboran. Our team delivered record flow rates from the ~5,500-foot horizontal section in the SS-2H ST1 well. Importantly, the well delivered an extremely flat decline curve over the 90-day period, including a surprising 2% increase over the last 30 days of testing without downhole intervention or changes to the choke." Richard Stoneburner, Chairman and Interim CEO.
• "In July 2025, we commenced the largest drilling campaign in the history of the Beetaloo Basin. The program includes three batched-drilled wells, each with a 10,000-foot horizontal section within the Mid Velkerri B shale. I am happy to report that earlier this week, we reached TD on the second of the three wells, delivering record drilling speeds through the horizontal section in the formation." Richard Stoneburner, Chairman and Interim CEO.
• "We also reached a key milestone in securing Native Title Holder and NTG approval to sell gas under the legislated appraisal framework. We appreciate the Native Title Holders and the Northern Land Council for their support in reaching a positive outcome with this significant agreement and for their vision and support." Richard Stoneburner, Chairman and Interim CEO.

Industry Context

The Beetaloo Basin is a significant emerging shale gas play in Australia, often compared to major US shale basins like the Marcellus. Tamboran's record flow rates and successful drilling campaigns indicate increasing confidence in the commercial viability of the Mid Velkerri B Shale, aligning with broader industry efforts to develop new gas supplies, particularly for the East Coast gas market which typically commands a premium over Henry Hub prices. The approvals for appraisal gas sales and infrastructure development reflect a maturing regulatory and operational environment for unconventional gas in the Northern Territory.

Comparison to Industry Standards

• The SS-2H ST1 IP30 flow rate of 7.2 MMcf/d over a 5,483-foot stimulated length, when extrapolated to a 10,000-foot horizontal section (13.2 MMcf/d), is in-line with the average of over 11,000 wells in the Marcellus Shale dry gas area with production for over a 12-month period. This suggests comparable productivity to a highly successful US shale play.
• The company is incorporating lessons from prior drilling campaigns, such as anti-vibrating drilling technology and new mud systems, which are standard practices in mature shale plays to improve efficiency and reduce costs.
• The average well cost of US$30 million for the SS Pilot Project wells (including drilling, stimulation, and extended production testing) provides a benchmark for development costs in the Beetaloo Basin.

Management Changes

Corporate Governance

Related Party Transactions

• Daly Waters Energy, LP (DWE), 100% owned by Formentera Australia Fund, LP (an entity founded by Bryan Sheffield, who also supported the PIPE transaction), finalized a checkerboard agreement for joint acreage and acquired a non-operating interest in 100,000 acres from Tamboran for US$15 million.
• Formentera Partners, an entity founded by Bryan Sheffield, supported the PIPE transaction with US$10 million.

Stakeholder Impact

• Shareholders: Positive impact from record flow rates, successful drilling, capital raise, and board strengthening. Potential for increased share value if project milestones are met. Dilution from PIPE transaction.
• Native Title Holders: Positive impact from the agreement to sell appraisal gas, indicating collaboration and benefit sharing.
• Northern Territory Government: Positive impact from the approval of appraisal gas sales, potentially leading to local gas supply and economic benefits.
• Employees: Continued employment and potential growth opportunities with ongoing drilling and development activities.
• Customers (NTG): Expectation of gas supply from mid-2026 under a binding GSA.
• Financiers: Ongoing discussions for funding the SPCF construction, indicating potential for new debt financing opportunities.

Next Steps

• Reach Final Investment Decision (FID) on proposed Pilot Project (4Q 2025).
• Complete drilling of SS-6H Pilot well (4Q 2025).
• Stimulate SS-4H well with Liberty Energy equipment (4Q 2025).
• Complete construction of the Sturt Plateau Pipeline (SPP) (Early 2026).
• Target completion of the Phase 2 Development Area farmout (1Q 2026).
• Stimulate SS-3H, -5H, and -6H wells ahead of commencement of gas sales (1H 2026).
• Complete construction of the Sturt Plateau Compression Facility (SPCF) (Mid-2026).
• Target SS Pilot Project first gas sales of 40 TJ/d (~39 MMcf/d) (Mid-2026).
• Progress discussions with financiers to support funding of the remaining construction costs for SPCF.
• Santos plans to commence a two 10,000-foot horizontal well program at Jibera South and Newcastle South in EP 161 (mid-2026).
• Tamboran to acquire 2D seismic in EP 143 (2026).
• Santos expects to stimulate each well in EP 161 (2027 dry season).
• Tamboran to drill a stratigraphic well in EP 143 (2028).

Key Dates

Recommendation

The filing presents a highly positive outlook for Tamboran Resources, marked by record-breaking flow rates from the SS-2H ST1 well, which demonstrated a surprising 2% increase over the final 30 days, indicating exceptional reservoir quality. The successful and efficient commencement of a major batch drilling program, with wells reaching target depth ahead of schedule, underscores operational excellence and de-risks future development. Crucially, the company secured historic regulatory and Native Title approvals for appraisal gas sales, a significant milestone that clears the path for commercialization and avoids flaring. The successful US$55.4 million capital raise, coupled with a pro forma cash balance of US$71.1 million, provides robust funding for upcoming activities. The appointment of highly experienced industry leaders like Scott Sheffield to the board further strengthens governance and strategic direction. With the SS Pilot Project on track for first gas by mid-2026 and key infrastructure progressing rapidly, the company is executing its strategy effectively. While inherent risks of an early-stage energy project exist, the substantial positive developments, strong operational performance, and clear path to production make Tamboran a compelling 'strong buy' for investors seeking exposure to a rapidly developing and de-risked shale gas play.

Keywords

Tamboran Resources, Beetaloo Basin, Natural Gas, IP90, Drilling, SEC Filing, Energy, Australia, Mid Velkerri B Shale, Exploration, Production, Capital Raise, Corporate Governance, ESG