Tamboran Announces Partial Exercise of Underwriters’ Over-Allotment Option

Rhea-AI Summary

Tamboran Resources (NYSE:TBN) announced the partial exercise of the underwriters' over-allotment option from its recent IPO. An additional 308,750 shares will be sold at US$24.00 per share, generating US$7.4 million in gross proceeds. The closing is expected on July 30, 2024, subject to customary conditions.

The funds will be used to support ongoing drilling activities for the proposed Shenandoah South Pilot Project in the Beetaloo Basin. This follows Tamboran's initial public offering of 3,125,000 shares at the same price. The original 30-day over-allotment option was granted in connection with the IPO.

Positive

• Additional US$7.4 million in gross proceeds raised through partial exercise of over-allotment option
• Funds to be used for ongoing drilling activities in the Beetaloo Basin
• Successful completion of IPO and partial exercise of over-allotment option indicates investor interest

Negative

• Potential dilution of existing shareholders due to additional shares being issued

Insights

Financial Analyst

The partial exercise of the over-allotment option by Tamboran Resources 's IPO underwriters is a moderately positive development for the company. This move demonstrates some level of market demand for Tamboran's shares, albeit not at the full extent of the over-allotment option.

The additional $7.4 million in gross proceeds will bolster Tamboran's financial position, providing extra capital for their Shenandoah South Pilot Project in the Beetaloo Basin. This influx of funds could potentially accelerate their drilling activities and exploration efforts, which is important in the capital-intensive oil and gas sector.

However, it's worth noting that only 9.88% of the over-allotment option was exercised (308,750 shares out of a possible 3,125,000). This partial exercise might indicate that market demand for Tamboran's shares, while present, is not overwhelmingly strong. Investors should consider this as a potential indicator of market sentiment towards the company and its prospects.

The $24 per share price maintains consistency with the initial IPO pricing, suggesting stability in the perceived value of Tamboran's stock. However, investors should keep a close eye on how the stock performs once these additional shares hit the market on July 30, 2024, as it could provide insights into the stock's near-term trajectory.

Energy Sector Analyst

Tamboran's focus on the Beetaloo Basin in Australia's Northern Territory is noteworthy for energy sector investors. The Beetaloo Basin is considered one of the most promising shale gas plays globally, with potential to significantly impact Australia's energy landscape.

The additional capital raised through this over-allotment will support Tamboran's drilling activities in the Shenandoah South Pilot Project. This project is important for proving the commercial viability of gas extraction in the region. Success here could position Tamboran as a key player in Australia's future energy mix, particularly as the country seeks to transition from coal to cleaner energy sources like natural gas.

However, investors should be aware of the challenges associated with shale gas exploration and production in Australia. These include:

• Regulatory hurdles and environmental concerns
• Remote location of the Beetaloo Basin, which may increase operational costs
• Potential fluctuations in natural gas prices affecting project economics

The partial exercise of the over-allotment option suggests cautious optimism from institutional investors. While there's interest in Tamboran's potential, there's also a degree of reservation, possibly due to the speculative nature of early-stage gas exploration projects.

Investors should closely monitor Tamboran's progress in the Shenandoah South Pilot Project, as success or failure here will likely have a significant impact on the company's future prospects and stock performance.

Highlights

• Tamboran Resources Corporation (“Tamboran” or the “Company”) today announced that the underwriters of its previously completed initial public offering (IPO) of common stock on the New York Stock Exchange (NYSE) have partially exercised their over-allotment option to purchase an additional 308,750 shares at a price of US$24.00 per share. Closing is expected on July 30, 2024, subject to customary closing conditions.
• The 30-day over-allotment option was granted in connection with Tamboran’s initial public offering of 3,125,000 shares of Common Stock at a price to the public of US$24.00 per share.
• Tamboran intends to use the US$7.4 million of gross proceeds from the offering as described in the prospectus for the offering to fund the ongoing drilling activities for the proposed Shenandoah South Pilot Project in the Beetaloo Basin.

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

Further details

A registration statement on Form S-1 relating to the proposed offering was declared effective by the U.S. Securities and Exchange Commission on June 26, 2024. Copies of the prospectus relating to the proposed offering may be obtained, when available, from: BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attention: Prospectus Department, by telephone at 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com; Citigroup, Attention: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146) or RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, New York, NY 10281, by telephone at 877-822-4089 or by email at equityprospectus@rbccm.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the U.S. Securities Act of 1933, as amended.

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.

Note on Forward-Looking Statements

The information contained in this release contains certain forward-looking statements. All statements, other than statements of historical fact included herein, included regarding the size, timing or results of the initial public offering are forward-looking statements. When used in this release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “seek,” “may,” “should,” “would,” “could,” “will,” “authorize,” “grant,” the negative of these term and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described in the section entitled “Risk Factors” in the prospectus included in the registration statement. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events.

Although we believe that the assumptions underlying these forward-looking statements are reasonable, should one or more of the risks or uncertainties described in the prospectus included in the registration statement occur, or should underlying assumptions prove incorrect, actual outcomes and our results and financial condition may differ materially from those indicated in any forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements, expressed or implied, included herein are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

All forward-looking statements, expressed or implied, in this release are based only on information currently available to us and speak only as of the date on which they are made. Except as otherwise required by applicable law, we disclaim any duty to publicly update any forward-looking statement, each of which is expressly qualified by the statements in this section, to reflect events or circumstances after the date of this release.

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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

How many additional shares did Tamboran Resources (NYSE:TBN) sell through the over-allotment option?

Tamboran Resources (NYSE:TBN) sold an additional 308,750 shares through the partial exercise of the underwriters' over-allotment option.

What is the price per share for Tamboran's (NYSE:TBN) over-allotment option exercise?

The price per share for Tamboran's (NYSE:TBN) over-allotment option exercise is US$24.00, the same as the initial public offering price.

When is the expected closing date for Tamboran's (NYSE:TBN) over-allotment option exercise?

The expected closing date for Tamboran's (NYSE:TBN) over-allotment option exercise is July 30, 2024, subject to customary closing conditions.

How will Tamboran Resources (NYSE:TBN) use the proceeds from the over-allotment option exercise?

Tamboran Resources (NYSE:TBN) intends to use the proceeds to fund ongoing drilling activities for the proposed Shenandoah South Pilot Project in the Beetaloo Basin.