Date: 07/01/2025
*** GENERAL AVICE ONLY***
Company Overview:
Tamboran Resources Corporation is the largest acreage holder with ~1.9 million net prospective net acres in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia.
The Company is focused on playing a constructive role in the global energy transition towards a lower carbon future, by developing the significant low CO2 gas resource within the basin. Tamboran’s key assets include a 25% working interest in EP 161, a 100% working interest and operatorship in EP 136, EP 143 and EP(A) 197 and a 38.75% working interest and operatorship in EPs 98, 117 and 76 which are all located in the Beetaloo Basin.
Tamboran will focus on the development of the proposed EP 98 Pilot Development, targeting first production by the end of calendar year 2025.
Shenandoah South-3H drilled to TD in 25 days
The Shenandoah South 3H (SS-3H) well was successfully drilled, cased and cemented with 5-½-inch casing to a measured depth of 21,169 feet (6,452 metres) within Beetaloo Basin exploration permit EP 98.
The well was drilled in 25 days (spud to total depth (TD)) and achieved an average drilling rate of 843 feet per day, 10 days and 43% faster than the SS-2H well, the only well previously drilled to total depth of more than 20,000 feet. This follows the successful implementation of key lessons from wells drilled earlier in the 2024 campaign.
• The SS-3H well is the first well drilled and cased with a useable 10,000-foot (3,048-metre) horizontal section below 8,000 feet true vertical depth (TVD) for stimulation in the Beetaloo Basin.
• Data from the SS-3H well has demonstrated strong gas shows and a continuation of the high quality shale and rock properties observed in the Shenandoah region, including a gentle, undulating structure with no faulting observed along the ~10,000-foot (3,048-metre) section.
• The Liberty Energy (NYSE: LBRT) stimulation equipment and sand has been mobilized to location ahead of a 100 – 120-stage stimulation campaign, which is planned to commence in early 1Q 2025.
• The SS-2H ST1 well is planned to be stimulated with up to 45 stages following the casing of the horizontal section to 5,577 feet (1,700 metres). The SS-3H completion design is expected to increase up to 75 stimulated stages over the 10,000-foot section.
• IP30 flow tests from both wells remain on track for release in 1Q 2025.
Rationale:
TBN came out with some exciting drill news in December 2024 and market has reacted positively. This successful drill has significantly de-risked the company. Lots of the buying has been during the US hours as TBN is dual listed. Analysts have a price target of 30c for TBN and there is an opportunity to buy here at 17c which is still around the average price for 2024. TBN has a binding offtake with Northern Territory government, binding pipeline build with APA, NYSE listing and US$74m in the bank, so lots of positive catalysts for a company that is going to help with the coming shortage of natural gas in Australia
Trade Strategy: Buy Tamboran Resources (TBN)
Entry: Buy – up to 17c
Exit: Target – 24c | Stop Loss – 10c (Use a 30% trailing stop)
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.