Falcon Oil & Gas notes the press releases from Tamboran Resources Corporation issued on 13 May 2025.
Tamboran’s announcements confirmed:
- the commencement of flow testing at the Shenandoah S2-2H ST1 ('SS-2H ST1') well in the Beetaloo Sub-basin, Northern Territory, Australia;
- agreements entered to complete a US$55.4 million private placement and a US$15 million asset sale (at US$150/acre) to provide Tamboran with necessary funding to drill three wells commencing in mid-2025 and stimulate four wells (including the Shenandoah S2-4H well drilled late last year) in a single campaign planned for late 2025 / 1H 2026 subject to JV approval; and
- the finalisation of the checkerboard of the joint acreage position across exploration permits 76, 98 and 117 between Tamboran and Daly Waters Energy, LP ('DWE').
Key points to note:
SS-2H ST1
Flow testing of SS-2H ST1 has commenced after a longer soaking period following analysis of wells across the Beetaloo Sub-basin, allowing water to imbibe into the rock, increasing the formation’s relative permeability to gas.
- The IP30 flow test is expected to be announced in June 2025 and testing is planned to continue for a full 90-days, subject to weather or unforeseen events.
Checkerboard
- Tamboran and DWE have signed a binding agreement to finalise the checkerboard of their joint acreage across the three exploration permits: EP 76, 98 and 117.
- Both parties will hold operated working interest areas at 77.5% (except in the two smaller areas which are the subject of the sale of 100,000 acres by Tamboran to DWE), with Falcon Oil & Gas Australia Limited (“Falcon”) having the remaining 22.5% non-operating interest across the wider acreage.
- Ownership of the proposed northern Pilot Area containing 20,309 acres, the focus for initial gas production in the Northern Territory, remains unchanged with Falcon at 5%, Tamboran (operator) 47.5% and DWE 47.5%.
- Ownership of the anticipated expansion into the southern Pilot Area containing 20,309 acres will be Falcon at 22.5%, Tamboran 38.75% and DWE (operator) 38.75%.
- Falcon is uniquely placed as the only party with an interest across all checkboard pieces.
Operator Funding for the completion of the Shenandoah South Pilot Project
- Tamboran has confirmed that following the completion of its fundraising, it expects to be fully funded to drill and complete the remaining three wells required to deliver first gas under the Shenandoah South Pilot Project, with first gas planned for mid-2026.
- Falcon has opted to reduce its interest in these three remaining wells to be drilled to zero %.
Valuation of acreage
- DWE and Tamboran have entered into a binding agreement whereby DWE will acquire a non-operating and non-controlling interest across 100,000 acres within two areas of Tamboran’s post-checkerboard acreage position for a consideration of US$15 million, equating to US$150/acre.
- The US$150/acre would translate to a valuation of Falcon’s acreage at a minimum of US$150 million.
Investor Meet
Philip O’Quigley, Falcon’s CEO, will conduct a Q&A via the Investor Meet Company platform on 21 May 2025 at 4:00pm (London time) to discuss this press release and comment on the related press releases issued by Tamboran yesterday. The event is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9.00am (London time) on 20 May 2025 or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Falcon Oil & Gas Ltd. via:
https://www.investormeetcompany.com/falcon-oil-gas-ltd/register-investor
Investors who already follow Falcon Oil & Gas Ltd. on the Investor Meet Company platform will automatically be invited.
Philip O’Quigley, CEO of Falcon commented:
'We look forward to updating the market on the SS-2H ST1 IP30 flow test results as soon as they become available.
We are extremely encouraged by the read-through valuation on Falcon’s net 1 million acres from the sale of acreage by Tamboran to DWE and we welcome the completion of the checkerboard where Falcon is uniquely placed as being the only company with an interest in each of the checkerboard pieces.
Reducing our participation in the next three wells has an insignificant impact on our overall net acres in the Beetaloo which remains at circa 1 million acres and our interest across the wider acreage remains at 22.5%. This demonstrates the optionality and financial engineering afforded by the drilling and spacing units, which enable Falcon to strategically and efficiently deploy its capital. This reduction in our participation in the next three wells significantly reduces our 2025 capital expenditure whilst at the same time leaving us very well positioned to capture the overall success of the Beetaloo.
Lastly, we look forward to working with DWE as an additional operator in the Beetaloo.'
Source: Falcon Oil & Gas
