EP 98 Operational Update: SS-2H ST1 Stimulation Delivers Material Step Change in Beetaloo Completion Efficiency

Rhea-AI Summary

Tamboran Resources (NYSE: TBN) has successfully completed stimulation operations at the Shenandoah South 2H sidetrack (SS-2H ST1) well in the Beetaloo Basin. The operation covered 35 stages across a 5,483-foot horizontal section in the Mid Velkerri B Shale, utilizing Liberty Energy's modern stimulation equipment.

Key achievements include:

• Record completion of five stages over 24-hour periods
• Average proppant intensity of 2,706 pounds per foot
• Wellhead injection rates above 100 barrels per minute
• Stage spacing optimized to ~168 feet for improved efficiency

The well demonstrated significant improvements compared to SS-1H, including a 234% increase in usable lateral stimulation length, 250% increase in stimulated stages, and 22% higher stimulation intensity. The next steps include clean out activities and commencement of initial flow back and extended production testing.

Positive

• Record-breaking completion efficiency with five stages completed in 24 hours
• 234% increase in usable lateral stimulation length compared to SS-1H
• 22% higher stimulation intensity at 2,706 pounds per foot
• 100% increase in equipment horsepower capacity (80,000 vs 40,000)

Negative

• None.

Insights

Energy Industry Expert

The latest operational update from Tamboran Resources reveals a significant technological breakthrough in their Beetaloo Basin operations. The SS-2H ST1 well completion demonstrates exceptional efficiency improvements, with the horizontal section reaching 5,483 feet - more than triple the length of previous wells. This advancement is particularly noteworthy for several reasons:

The achieved metrics are impressive:

• A 234% increase in usable lateral stimulation length
• Record-setting proppant intensity of 2,706 pounds per foot
• Injection rates exceeding 100 barrels per minute

These technical achievements could significantly impact the project's economics. The increased lateral length and stimulation intensity typically correlate with higher production rates and improved ultimate recovery. The ability to complete five stages in 24 hours represents a step-change in operational efficiency, potentially reducing completion costs and time to production.

The partnership with Liberty Energy, utilizing their 80,000 horsepower equipment (double the previous capacity), demonstrates a strategic upgrade in operational capabilities. The ownership structure, with Tamboran operating through a joint venture with Daly Waters Energy, provides strong financial backing and technical expertise for the project's development.

The optimization of stage spacing to ~168 feet shows a data-driven approach to completion design, potentially leading to more effective resource recovery. The upcoming flow back and extended production testing will be important in validating these technical improvements and their impact on well productivity.

Highlights

• Tamboran Resources successfully completed stimulation activities over 35 stages across a 5,483-foot (1,671-metre) horizontal section in the Mid Velkerri B Shale within the Shenandoah South 2H sidetrack (SS-2H ST1) well. The stimulation was conducted using the Liberty Energy (NYSE: LBRT) modern stimulation equipment.
• The SS-2H ST1 completion operations achieved five stages over a 24-hour period on multiple days, exceeding previous Beetaloo Basin records.
• Average proppant intensity of 2,706 pounds per foot (lb/ft) across the 35 completed stages exceeded all previous completion activities in the Beetaloo Basin to date and achieved wellhead injection rates above 100 barrels per minute (bpm).
• The SS-2H ST1 well will be completed ahead of clean out activities and the commencement of initial flow back and extended production testing.
• Further updates on the completion of the Shenandoah South 3H (SS-3H) well will be provided in due course.

NEW YORK--(BUSINESS WIRE)-- Tamboran Resources Corporation (NYSE: TBN, ASX: TBN):

Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said:

“The SS-2H ST1 stimulation operations were successfully completed across 35 stimulated stages over the 5,483-foot horizontal section in the Mid Velkerri B Shale.

“The increased efficiency from the Liberty stimulation equipment has delivered Beetaloo Basin completion records for average proppant injection intensity and treating rates over 100 bpm.

“The decision was made during the completion activities to optimize the stimulation design by increasing the spacing between stages to ~168 feet, which resulted in improved efficiency.

“We will now focus on completing and cleaning out the SS-2H ST1 well ahead of the commencement of initial flow back and extended production testing.”

SS-2H ST1 completion metrics (as compared with SS-1H)

Well	SS-1H	SS-2H ST11	∆ (%)
Usable lateral stimulation length (feet)	1,640	5,483	234%
Number of stimulated stages (#)2	10	35	250%
Average spacing (feet)	164	157	(4%)
Stimulation intensity (lb/ft)	2,212	2,706	22%
Average sand per stage (lb)	355,997	423,884	19%
Equipment Used	Condor Energy	Liberty Energy	N/A
Equipment Horsepower (HHP)	40,000	80,000	100%

1Planned stimulation design compared to actuals from the SS-1H well, which was completed in 2H 2023.

2Excludes stimulation of the toe stage of the horizontal section.

EP 98/117 interests

Company	Interest
Tamboran (B2) Pty Limited1	77.5%
Falcon Oil and Gas Australia Limited (Falcon)	22.5%
Total	100.0%

Shenandoah South-2 Drilling Spacing Units (DSUs) – 46,080-acres²

Company	Interest
Tamboran (B2) Pty Limited1	95.0%
Falcon Oil and Gas Australia Limited (Falcon)	5.0%
Total	100.0%

1Tamboran (B2) is a 50%/50% Joint Venture between Tamboran and Daly Waters Energy, LP (100% owned by Formentera Australia Fund, LP, which is managed by Formentera Partners, LP, a private equity firm of which Bryan Sheffield serves as managing partner). Tamboran (B2) is the operator of EP 98/117 and Tamboran is acting as operator on behalf of the joint venture.

2Subject to the completion of the SS-2H ST1 and SS-3H wells on the Shenandoah South pad 2.

This announcement was approved and authorized for release by Joel Riddle, the Managing Director and Chief Executive Officer of Tamboran Resources Corporation.

About Tamboran Resources Corporation

Tamboran Resources Corporation, (“Tamboran” or the “Company”), through its subsidiaries, is the largest acreage holder and operator with approximately 1.9 million net prospective acres in the Beetaloo Sub- basin within the Greater McArthur Basin in the Northern Territory of Australia.

Tamboran’s key assets include a 38.75% working interest and operatorship in EPs 98, 117 and 76, a 100% working interest and operatorship in EP 136 and a 25% non-operated working interest in EP 161, which are all located in the Beetaloo Basin.

Disclaimer

Tamboran makes no representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward-looking statement or any outcomes expressed or implied in any forward-looking statement. The forward-looking statements in this report reflect expectations held at the date of this document. Except as required by applicable law or the ASX Listing Rules, Tamboran disclaims any obligation or undertaking to publicly update any forward-looking statements, or discussion of future financial prospects, whether as a result of new information or of future events.

The information contained in this announcement does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial product advice. Before making an investment decision, recipients of this announcement should consider their own needs and situation and, if necessary, seek independent professional advice. To the maximum extent permitted by law, Tamboran and its officers, employees, agents and advisers give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. Further, none of Tamboran nor its officers, employees, agents or advisers accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this announcement.

Note on Forward-Looking Statements

This press release contains “forward-looking” statements related to the Company within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the Company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward-looking statements.

It is possible that the Company’s future financial performance may differ from expectations due to a variety of factors, including but not limited to: our early stage of development with no material revenue expected until 2026 and our limited operating history; the substantial additional capital required for our business plan, which we may be unable to raise on acceptable terms; our strategy to deliver natural gas to the Australian East Coast and select Asian markets being contingent upon constructing additional pipeline capacity, which may not be secured; the absence of proved reserves and the risk that our drilling may not yield natural gas in commercial quantities or quality; the speculative nature of drilling activities, which involve significant costs and may not result in discoveries or additions to our future production or reserves; the challenges associated with importing U.S. practices and technology to the Northern Territory, which could affect our operations and growth due to limited local experience; the critical need for timely access to appropriate equipment and infrastructure, which may impact our market access and business plan execution; the operational complexities and inherent risks of drilling, completions, workover, and hydraulic fracturing operations that could adversely affect our business; the volatility of natural gas prices and its potential adverse effect on our financial condition and operations; the risks of construction delays, cost overruns, and negative effects on our financial and operational performance associated with midstream projects; the potential fundamental impact on our business if our assessments of the Beetaloo are materially inaccurate; the concentration of all our assets and operations in the Beetaloo, making us susceptible to region-specific risks; the substantial doubt raised by our recurring operational losses, negative cash flows, and cumulative net losses about our ability to continue as a going concern; complex laws and regulations that could affect our operational costs and feasibility or lead to significant liabilities; community opposition that could result in costly delays and impede our ability to obtain necessary government approvals; exploration and development activities in the Beetaloo that may lead to legal disputes, operational disruptions, and reputational damage due to native title and heritage issues; the requirement to produce natural gas on a Scope 1 net zero basis upon commencement of commercial production, with internal goals for operational net zero, which may increase our production costs; the increased attention to ESG matters and environmental conservation measures that could adversely impact our business operations; risks related to our corporate structure; risks related to our common stock and CDIs; and the other risk factors discussed in the this report and the Company’s filings with the Securities and Exchange Commission.

It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the Company continually reviews trends and uncertainties affecting the Company’s results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document.

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Investor enquiries:

Chris Morbey, Vice President – Corporate Development and Investor Relations

+61 2 8330 6626

Investors@tamboran.com

Media enquiries:

+61 2 8330 6626

Media@tamboran.com

Source: Tamboran Resources Corporation

FAQ

What are the key completion metrics achieved in Tamboran's SS-2H ST1 well compared to SS-1H?

SS-2H ST1 achieved a 234% increase in lateral stimulation length (5,483 vs 1,640 feet), 250% more stimulated stages (35 vs 10), and 22% higher stimulation intensity (2,706 vs 2,212 lb/ft) compared to SS-1H.

What is Tamboran's (TBN) ownership structure in the EP 98/117 project?

Tamboran (B2) holds 77.5% interest in EP 98/117, while Falcon Oil and Gas Australia holds 22.5%. For the Shenandoah South-2 DSUs, the split is 95% and 5% respectively.

What are the next steps for Tamboran's SS-2H ST1 well?

The next steps include completing and cleaning out the SS-2H ST1 well, followed by initial flow back and extended production testing.

What equipment improvements did TBN implement for the SS-2H ST1 stimulation?

TBN upgraded from Condor Energy to Liberty Energy equipment, doubling the equipment horsepower from 40,000 to 80,000 HHP.