Completes Capital Raise, Presentation and Investor Webcast
Sydney, June 27, 2023 AEST (ABN Newswire) - Tamboran Resources Limited (
ASX:TBN) (TBNNY:OTCMKTS) has received binding commitments for a non-underwritten placement to new and existing shareholders to raise up to ~$53.2 million (before costs) at $0.18 per share. The price represents a 12.2 per cent discount to the closing price on Thursday, 22 June 2023 and 13.0 per cent discount to the 10-day VWAP for the period ending 22 June 2023.
In conjunction with the placement, Helmerich & Payne (NYSE:HP) and Tamboran have signed a binding Heads of Agreement (HOA) for a Convertible Note (CN) of ~US$9 million (~$13.2 million), which is subject to shareholder approval. The CN has a 5-year term and 5.5% interest rate (paidin-kind), with a conversion floor of $0.21 per share and ceiling of $0.30 per share.
The Company intends to launch a Share Purchase Plan (SPP) allowing existing shareholders to participate on the same terms as the placement at $0.18 per share of up ~$5 million.
The funds from the Placement, CN and SPP (together, the Capital Raise) will support Tamboran's Beetaloo Basin drilling activity, fully satisfy the farm-in commitments associated with the Origin transaction in 2022 (securing a 38.75% interest in EPs 76, 98 and 117) and allow Tamboran to book initial 2C gas resources over the Shenandoah South area.
The placement was supported by a ~$14.7 million investment from Tamboran's largest shareholder, Mr Bryan Sheffield (Sheffield).
At the completion of the Capital Raise, Tamboran will be fully funded to undertake clean-up activities at the Amungee 2H (A2H) well and drill the Shenandoah South 1H (SS1H) and Amungee 3H (A3H) wells in EP 117 and 98, respectively.
Tamboran Resources Limited Managing Director and CEO, Joel Riddle, said:
"Tamboran's ~$71.4 million Capital Raise brings the Company one step closer to commercialisation of our acreage in the Beetaloo Basin and funds several key milestones that are expected to unlock this vast, low reservoir CO2 gas resource.
"We are fully focused on delivering commercial flow rates from the Shenandoah South and Amungee areas.
De-risking of these two areas provides us with optionality for initial production via mini-LNG, as early as 2024, and the proposed pilot development, targeting first production by the end of 2025. Tamboran recently entered into exclusive agreements with Clean Energy Fuels Australia (CEFA) that could support production from either of these locations.
"The Capital Raise also supports Tamboran's growth ambitions to supply Beetaloo gas into the East Coast gas and global LNG markets. This ambition is backed by two key announcements, a strategic partnership with the midstream pipeline provider, APA Group, and non-binding MOUs with bp and Shell, two of the world's largest LNG portfolio trading and energy companies.
"Tamboran aims to play a key role as being part of the solution to supporting both the Australian domestic gas market and the Asia Pacific as economies move away from coal-fired power during the energy transition."
Helmerich & Payne (H&P) Convertible Note
In conjunction with the equity placement, Tamboran have signed a binding HOA to complete a CN with H&P for up to ~US$9 million (~$13.2 million). The note is expected to cover the cost of mobilisation of the H&P super spec FlexRig(R) Flex 3 Rig into Australia during H1 2023. This will allow Tamboran to focus on investing into drilling activities to mature resources and unlock gas in the Beetaloo Basin.
Institutional equity placement
Tamboran has received commitments for ~$53.2 million (pre-costs) in equity, to be raised through the issue of approximately 295.6 million new shares to new and existing investors. This includes a further equity investment of ~$14.7 million from Tamboran's largest shareholder, Sheffield Holdings, LP ("Sheffield").
The placement was conducted at an issue price of $0.180 per share ("Issue Price"), representing a discount of:
- 12.2% to Tamboran's last traded price on Thursday, 22 June 2023 of $0.205 per share.
- 13.0% to Tamboran's 10-day VWAP ended Thursday, 22 June 2023 of $0.207 per share.
The placement comprises two-tranches as follows:
- An unconditional placement of 288,995,504 New Shares to raise ~$52.0 million, to be issued without shareholder approval ("Tranche 1 Placement"). New Shares issued under the Tranche 1 Placement will be issued within the Tamboran's existing placement capacity in accordance with ASX Listing Rule 7.1 (184,623,835 shares) and 7.1A (104,371,669 shares); and
- A conditional placement of 6,638,886 New Shares to certain Tamboran directors to raise ~$1.2 million, subject to shareholder approval at a general meeting expected to be held in late July / early August 2023 ("Tranche 2 Placement").
Barrenjoey Markets Pty Ltd acted as Capital Markets Advisor and Lead Manager to the placement.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/809LP7U8
Tamboran Resources' Managing Director and Chief Executive Officer, Mr Joel Riddle, will host a webcast to discuss the recent equity raise and forward drilling program for the Company's Beetaloo Basin assets.
Time: 11:00am AEST (Sydney)
Date: Tuesday, 27 June 2023
Webcast link: https://webcast.openbriefing.com/tbn-ep-2023/
To view the Capital Raise Presentation, please visit:
https://www.abnnewswire.net/lnk/P00WEUD7
About Tamboran Resources Corporation
Tamboran Resources Corporation (ASX:TBN) is a natural gas company that intends to play a constructive role in the global energy transition towards a lower carbon future by developing low CO2 unconventional natural gas resources in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran's key assets are a 25% working interest in EP 161 and a 100% working interest in EP 136, EP 143 and EP(A) 197 which are located in the Beetaloo Sub-basin.
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