Tamboran Resources Ltd (OTC:TBNRF) has entered into a strategic partnership and received a US$10 million (A$15.2 million) equity investment from Liberty Energy Inc. a leading NYSE-listed North American energy services firm.
Under the strategic partnership, Liberty plans to import a modern frac fleet into the Beetaloo Basin in 2024 to support the stimulation campaign for Tamboran’s proposed 40 million cubic feet per day Shenandoah South Pilot Project, for which production is planned to commence in 2026.
Tamboran has agreed to work with Liberty to bring the latest sand mining and handling management solution to the Beetaloo Basin. Liberty plans to deliver a dedicated frac fleet and crew in 2024 has the potential to reduce the delays in mobilising equipment to the Beetaloo site, significantly increasing completion efficiencies and reducing the costs of future stimulation programs.
Tamboran, via its subsidiary Tamboran Infrastructure, has applied for 14 extractive mineral exploration licences close to the proposed Shenandoah South Pilot Project for the evaluation of and future extraction of frac sand.
These two initiatives — the strategic partnership with Liberty and mining of local sand — are expected to support reduced stimulation costs for future development programs.
Partnering with best-in-class companies
Tamboran managing director and CEO Joel Riddle said: “We welcome the strategic investment from Liberty, which provides alignment between the two companies and demonstrates Liberty’s confidence in the development of the Beetaloo Basin.
“Tamboran continues to partner with the best-in-class operating and technology companies to support the development of our assets. The strategic agreement with Liberty follows the partnership with Helmerich and Payne, which imported a modern US drilling rig into the Beetaloo Basin in 2023, and aims to result in material cost reduction and improved efficiency across our operations.
“The supply of stimulation equipment to the Beetaloo Basin is Liberty’s first outside of North America and we look forward to working with them for many years to come.
“Tamboran and Liberty are aligned on the common vision of proactively addressing global energy poverty by securing new supply of reliable and affordable energy. At Tamboran, we are committed to maintaining the energy security of Australians and aim to deliver affordable gas to Australians and Australia’s trading partners in the Asia Pacific region with the aim of encouraging a transition away from coal-fired power.”
LIberty chair and CEO Chris Wright said: “We are proud to partner with Tamboran to develop a new shale gas basin in Australia. Natural gas is by far the world’s fastest growing energy source because of its myriad uses and compelling advantages.
“Significant Beetaloo gas production could help energise Australia’s future and help meet Asia’s insatiable demand for natural gas to power economic growth, improve air quality, and lower greenhouse gas emissions. Beetaloo development perfectly aligns with our broader mission to better human lives.”
Tamboran raises $40.8 million
Tamboran also announced today that it has successfully completed its offering in new fully paid CHESS Depository Interests through an institutional placement and the institutional component of its one-for-6.2 pro rata accelerated non-renounceable entitlement offer announced yesterday.
Read more: Tamboran Resources launches A$28 million capital raising to boost Beetaloo Basin project
Supported by the $15.3 million strategic placement from Liberty Energy and a $7.6 million pre-commitment from the company’s largest shareholder, Bryan Sheffield, Tamboran has raised $40.8 million via the institutional offer.
Eligible retail investors have also been invited to participate in the entitlement offer at the same A$0.16 issue price and offer ratio as the institutional entitlement offer. The retail entitlement offer will open on Wednesday, December 20, 2023 and close at 5:00pm AEDT on January 3, 2024.
Of the raise, Riddle said: “We are greatly appreciative of the support from our shareholders who continue to see the potential of the Beetaloo Basin in the energy transition.
“The retail entitlement offer allows our existing shareholders to benefit from the recent transaction with our new Strategic Partner Liberty ahead of the Shenandoah South 1H (SS-1H) 30-day initial production (IP30) flow results during the first quarter of 2024.
“We are excited to work alongside Liberty in bringing their unique intellectual property and modern stimulation technology into the Beetaloo Basin. Liberty’s plan to deliver a dedicated frac fleet and crew into the Beetaloo Basin in 2024 has the potential to reduce the delays experienced in mobilising equipment to site, thereby significantly increasing completion efficiencies and reducing the costs of future stimulation programs.”