Tamboran Resources (TBN) Q1 2025 TU earnings summary

Executive summary

• Completed drilling of SS-2H, the first ~10,000 ft horizontal well in Beetaloo Basin; SS-2H sidetrack (ST1) nearing completion after a mechanical issue, with strong, consistent geologic properties and gas shows observed.

• Drilling efficiencies improved significantly, with the sidetrack achieving double the penetration rate of SS-2H and expected to set a Beetaloo Basin record.

• Liberty Energy's US-style frac equipment imported, enabling optimized stimulation for pilot wells in 1Q 2025.

• Progressing local sand mine development to reduce completion costs and support future drilling.

• Tamboran Resources remains in the exploration stage with no revenue from gas operations as of September 30, 2024, and does not expect material revenue until 2026 at the earliest.

Financial highlights

• Cash balance at September 30, 2024, was $74.0M, adjusted to $81.6M after rig sale proceeds in October.

• Net proceeds of AUD 7.6 million from sale of a U.S. rig offset the AUD 5 million cost of redrilling SS-2H.

• Net loss for the quarter was $6.8 million, compared to $3.8 million in the prior year quarter.

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

• Expecting $6.8M R&D rebate in 4Q 2024.

Outlook and guidance

• On track to deliver IP30 flow rates for SS-2H ST1 and SS-3H in 1Q 2025.

• First gas from pilot project anticipated in first half of 2026, with facility and pipeline construction to commence after regulatory approvals in 2H 2025.

• Approximately $70 million in investment is planned for the remainder of fiscal 2025 to progress development plans.

• Existing cash and proceeds from asset sales are expected to fund planned drilling and flow testing, but significant additional funding may be required to execute the full strategy.