Highlights
- Tamboran Resources and Formentera Partners, the owner of Daly Waters Energy (DWE), have executed a Farm-in Agreement to advance development of the Beetaloo Basin in Australia’s Northern Territory.
- Under the Farm-in Agreement, Tamboran will farm down approximately 10,000 acres of its working interest across the Shenandoah North Pilot Area and the Shenandoah South Pilot Area (collectively the Pilot Area) and the Beetaloo Central Development Area (BCDA) to DWE.
- The Farm-in Agreement provides for a staged earn-in, up to ~US$28.5 million, subject to structured off-ramp provisions.
- The agreement follows DWE announcing a strategic joint venture with INPEX Corporation (JPX: 1605, market capitalization of US$35 billion) (INPEX), Japan’s largest E&P and operator of the 8.9 MTPA (~1.2 Bcf/d) Ichthys LNG project in Darwin.
- The transaction recognizes the value premium that can be realised on Beetaloo acreage as it is defined and matured, like the Pilot Area, as well as the value that can be realised for adjacent appraisal areas, like the BCDA. It is an important step towards commercialization.
- Completion of the transaction is subject to certain conditions precedent in the farm-in between DWE and INPEX along with closure of Tamboran’s Falcon acquisition.
Tamboran Resources Corporation Chief Executive Officer, Mr. Todd Abbott, said:
“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.
'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 commercialization.'
'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.'
'The additional investment supports local jobs, infrastructure development and long-term energy security for the Northern Territory, while keeping us firmly on track for first gas in the third quarter of 2026. We are pleased to be progressing the project alongside DWE and remain excited about the scale of the opportunity ahead.'
Farm-in Agreement
The Farm-in Agreement between Tamboran and Formentera, the owner of DWE, is over the same acreage as the recently announced strategic joint venture between INPEX and DWE. Table 1 describes the preand-post transaction ownership across the Northern Pilot Area, Southern Pilot Area and BCDA.
Phase 1 carry: Under Phase 1 of the Farmout Agreement, DWE will provide Tamboran with a US$11.6 million carry commitment in respect to future work program spend in the Pilot Area.
Phase 2 carry: Subject to DWE electing to proceed to Phase 2, DWE will carry TBN for an additional US$11.6 million carry in the BCDA.
Additional consideration: Upon certain conditions being met, DWE will also provide Tamboran with an additional milestone carry of up to US$5.3 million.
Reassignment/Assignment: If DWE decides not to proceed with Phase 2, Tamboran will receive, by way of reassignment, 50% of the post-acreage ownership in the Pilot Area and assign 50% of the post-acreage ownership in the BCDA to DWE. Completion of the transaction is subject to satisfaction of certain conditions precedent required by DWE.
Source: Tamboran Resources
