Tamboran Resources Ltd is well on track to raise A$66 million in its Initial Public Offering (IPO) to list on the Australian Securities Exchange (ASX) with firm commitments received from existing shareholders and new investors for A$60 million.
In a prospectus that has been lodged with ASIC, the company is targeting an additional A$6 million for 15 million shares at A$0.40 per share which is being sought under a General Offer to the Australian public.
Shares in the company are anticipated to begin trading on the ASX under the code TBN by the end of June.
Tamboran intends to use proceeds from the IPO to fund its 25% interest in the Santos-operated EP 161 Tanumbirini #2H and Tanumbirini #3H horizontal wells and the drilling of the Maverick #1H horizontal well on Tamboran’s adjacent 100%-owned EP 136 licence in the first half of 2022.
“Largest in nearly a decade”
Tamboran CEO and managing director Joel Riddle said lodging the prospectus supported by the capital committed from high-quality institutional investors in Australia, the US, Asia Pacific and Europe was a “significant day for Tamboran Resources, our employees and our shareholders”.
He said: “The committed capital represents the largest E&P IPO in Australia in nearly a decade.
“This is an incredible achievement for the company, and demonstrates the strong institutional investor demand in Australia, US, Asia Pacific and Europe to fund Tamboran’s high-growth business plan.”
The General Offer is expected to close on or about June 10, 2021, subject to customary closing conditions.
MST Financial Services Pty Ltd served as lead manager of the IPO, Jermyn East Capital Pty Ltd served as corporate advisor and Squire Patton Boggs served as legal advisor to the company.
Well-funded for drilling
Mr Riddle added, “Following the completion of the IPO, Tamboran will be funded for the drilling of two horizontal wells on EP 161 and one horizontal well on EP 136 in the core of the Beetaloo Sub-basin and, subject to drilling success, the company will be well-positioned to deliver the first commercial development from the Beetaloo Sub-basin by 2025.”
As well as funding of up to three horizontal wells, proceeds will be used for 2-D seismic acquisition and other working capital.
The drilling campaign in EP 161, operated by Santos, in which Tamboran has a 25% interest, began on May 11 with the spudding of the Tanumbirini #2H horizontal well.
Drilling of this well is expected to be completed in July 2021.
The rig will then drill Tanumbirini #3H and both wells will be flow tested in the second half of this year.
2-D seismic acquisition is anticipated to occur over Tamboran’s 100% EP 136 licence in the second half of 2021 and the Maverick #1H horizontal well is anticipated to be drilled in the first half of 2022.