Tamboran Resources Limited (TBNNY) Announces Launch of Equity Raise

Tamboran Resources Limited (ASX:TBN) (OTCMKTS:TBNNY) announces launch of a non-underwritten institutional placement (Placement) to raise approximately A$28 million (US$18 million) and a non-underwritten 1 for 6.2 pro rata accelerated non-renounceable entitlement offer (Entitlement Offer) (together, the Equity Raise).

The Placement and the institutional component of the Entitlement Offer (together, the Institutional Offer) is being made to new and existing institutional investors, and includes a A$15 million (US$10 million) investment by Liberty Energy (Liberty).

Tamboran's largest securityholder, Mr. Bryan Sheffield, has committed to participate in the Entitlement Offer for his full pro rata entitlement of A$8 million (US$5 million).

The Equity Raise is being conducted at A$0.16 per New Chess Depositary Interest (New CDI) (Issue Price), equivalent to a 15.8% discount to the last closing price of A$0.19 per CDI on Wednesday, 13 December 2023, and a 4.9% premium to the 10-day VWAP of A$0.153 per CDI.

The funds from the Equity Raise will support the Company's Beetaloo Basin activities to the sanctioning of its proposed 40 million cubic feet per day (MMcf/d) Shenandoah South Pilot Project, which is planned for H1 2024. This includes the purchase of long lead items to maintain project timeline and Front-End Engineering and Design (FEED) activities.

Tamboran Resources Corporation (ASX:TBN) Managing Director and CEO, Joel Riddle, said:

"The capital raise takes us another step closer to the sanctioning of our proposed 40 MMcf/d Pilot Project in the Shenandoah South region.

"I believe this is a key inflection point towards the commercialisation of the Beetaloo, which has the potential to provide Territorians and Australians on the East Coast with energy security for decades to come.

"Investment in gas is expected to be required to meet our energy transition targets and investment in natural gas with low reservoir CO2, such as the Beetaloo Basin, should be developed ahead of those with higher reservoir CO2 content. This could support lower development costs as less cost is associated with injecting CO2 via carbon capture and storage or purchasing offsets.

"We are excited to be joined by Liberty, a leading oilfield services company in the United States with sophisticated and high-quality hydraulic fracturing, engineering and wireline services. This partnership, which follows that of Helmerich & Payne in 2022, delivers on our mission to bring US shale expertise into the Beetaloo Basin."

Use of proceeds

The funds from the Equity Raise will support the Company's Beetaloo Basin activities to the sanctioning of its proposed 40 MMcf/d Shenandoah South Pilot Project, which is planned for H1 2024. This includes the purchase of long lead items to maintain project timeline and FEED activities.

Tamboran will require further capital in the future to fund the Company to its targeted goal of 2 Bcf/d (gross) gas production in the Beetaloo Basin by 2030. There are numerous capital levers which Tamboran may explore to supplement future equity, including:

- Farm-in: Attractive entry point for a farm-in partner.

- Royalty transaction: Tamboran has held discussions previously regarding the sale of royalties across Tamboran's Beetaloo Basin acreage.

- Debt: Potential to raise debt from financiers to support development of the proposed pilot project.

- US listing: Potential to source deeper pool of capital in the US with experience with shale developments, particularly in light of Tamboran's recent re-domiciliation into the US.

Details of the Equity Raise

The Equity Raise consists of an offer of New CDIs through:

- A Placement to raise up to A$28 million (US$18 million); and

- A 1 for 6.2 Entitlement Offer to existing eligible securityholders.

The Issue Price for both the Placement and Entitlement Offer will be A$0.16 per New CDI which represents a 15.8% discount to Tamboran's last closing price of A$0.19 per CDI on Wednesday, 13 December 2023 and a 4.9% premium to the 10-day VWAP of A$0.153 per CDI.

Under the Entitlement Offer, eligible securityholders are invited to subscribe for 1 New CDI for every 6.2 existing Tamboran CDIs (Entitlement) held as at 7:00pm (Sydney time) on Monday, 18 December 2023.

Tamboran will issue up to approximately 452 million New CDIs under the Equity Raise, representing 26.4% of Tamboran's existing CDIs on issue. Post completion of the Equity Raise (assuming both the Placement and Entitlement Offer are fully subscribed), there will be 2,169 million CDIs on issue.

New CDIs issued under the Equity Raise will rank equally with existing fully paid CDIs from the date of issue. The Entitlement Offer is non-renounceable and rights are not transferrable and will not be traded on the ASX or any other exchange. The Entitlement Offer will be made to eligible institutional securityholders (Institutional Entitlement Offer) and eligible retail securityholders (Retail Entitlement Offer). Eligible ecurityholders who do not take up their entitlement under the Entitlement Offer in full or in part, will not receive any value in respect of those entitlements not taken up.

Strategic Investment

Bryan Sheffield has committed to take up an A$8 million (US$5 million) investment under the Entitlement Offer, representing Mr. Sheffield's full pro rata entitlement.

To view details of the Institutional Entitlement Offer, please visit:
https://abnnewswire.net/lnk/80FNK70G

Investor enquiries:
Chris Morbey
Vice President - Investor Relations
+61-2-8330-6626
Investors@tamboran.com

Media enquiries:
+61 2 8330 6626
Media@tamboran.com

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