Tamboran Resources Ltd (ASX:TBN) welcomes the move by Falcon Oil & Gas Australia Ltd to waive its pre-emptive rights relating to the purchase by Tamboran of Origin Energy’s 77.5% operating interest in the Beetaloo Basin assets in the Northern Territory of Australia.
Accordingly, the parties have entered into a binding Letter of Intent (LOI) to amend the terms of the Joint Operating Agreement (JOA) and the existing Farm-in Agreement (FIA) for the Beetaloo assets.
Tamboran’s interest in the assets is via its 50/50 joint venture with Bryan Sheffield.
Under the LOI, Falcon, the owner of 22.5% non-operating interest in the Beetaloo assets, will not exercise its pre-emptive rights in relation to the JV’s purchase of Origin’s interest in exchange for a partial extension to the carry consideration under the FIA, to be borne equally by Tamboran and Sheffield.
Close cooperation
“Subject to final Northern Territory Government approval of the Origin transaction, we look forward to working closely with our new joint venture partner, Falcon Oil & Gas, in accelerating the commercialisation of the significant, low CO2 natural gas within the Beetaloo Basin,” Tamboran managing director and chief operating officer Joel Riddle said.
“The amendments to the JOA and FIA pave a way forward for all parties to benefit from collaboration as we work towards sanctioning of the proposed Amungee Pilot Development in EP 98.”
The Northern Territory Government is expected to give its approval by the end of October 2022.
Tamboran will become the largest acreage holder in the Beetaloo when the transaction is completed, with about 1.9 million net prospective resources and hold about 1.8 trillion cubic feet (TCF) of net 2C contingent gas resources.