Tamboran Resources Corporation (NYSE:TBN, ASX:TBN, OTC:TBNRL, FRA:O8R) has agreed to farm down a portion of its Beetaloo Basin acreage to Daly Waters Energy (DWE), in a deal that values the assets at a premium and introduces up to US$28.5 million in funding support.
The agreement, struck with DWE’s owner Formentera Partners, covers around 10,000 acres across the Shenandoah North and South Pilot Areas and the Beetaloo Central Development Area (BCDA), and is designed to advance development of the basin while reducing Tamboran’s capital burden.
The farm-in provides for a staged earn-in by DWE, with total potential funding of up to US$28.5 million tied to development milestones and election to proceed through phases.
Under Phase 1, DWE will fund US$11.6 million of Tamboran’s share of future work programs across the Pilot Area. A further US$11.6 million carry is available under Phase 2, subject to DWE progressing, focused on the BCDA.
An additional US$5.3 million milestone-based carry may also be payable if certain conditions are met.
The agreement includes off-ramp provisions, with acreage ownership adjusted depending on whether DWE proceeds to later stages.
"This transaction represents a significant validation of the underlying value of our Beetaloo acreage with an implied valuation well above our recent traded metrics. Importantly, it allows us to accelerate activity while preserving balance sheet strength and maintaining operatorship of our core assets," Tamboran Resources Corporation CEO Todd Abbott said.
“Our Phase 2 Development Area farm-out process is continuing, and we look forward to providing additional updates in due course. Our process will benefit from this and the other recent positive developments in the Basin."
Strategic context and valuation uplift
The transaction aligns with a broader strategic move involving INPEX, which has partnered with DWE in the same acreage, signalling growing international interest in the Beetaloo Basin.
“The INPEX investment in the Beetaloo Basin via its farm-in to the DWE interest in the North and South Pilot Area and BCDA position is a strong sign of confidence and has the potential to provide Tamboran with an additional pathway to gas commercialisation,” Abbott said.
Tamboran said the deal reflects a valuation uplift for its acreage as it transitions from exploration to more defined and appraised assets, particularly within the Pilot Area and adjacent BCDA.
Chief executive Todd Abbott described the agreement as validation of the company’s asset base, noting it implies a valuation above recent trading metrics while preserving operatorship of core assets.
What it means for Tamboran
The farm-down allows Tamboran to accelerate development activity while maintaining balance sheet strength, effectively bringing in external capital to fund near-term work programs.
It also provides an additional pathway toward commercialisation of Beetaloo gas, supported by the involvement of DWE and its strategic partner INPEX.
Importantly, Tamboran retains exposure to the project while reducing up-front capital requirements, positioning the company to progress toward first gas targeted in Q3 2026.
Next steps and conditions
Completion of the farm-in remains subject to several conditions, including those tied to the DWE-INPEX transaction and Tamboran’s proposed Falcon acquisition.
The company also confirmed that its broader Phase 2 development area farm-out process is ongoing, with further updates expected as it continues to advance commercialisation of the Beetaloo Basin.