PERTH (miningweekly.com) - Natural gas developer Tamboran Resources has unveiled a near A$71.4-million capital raise to accelerate the development of its Beetaloo basin projects.

The company on Tuesday said it had received binding commitments to raise up to A$53.2-million under a non-underwritten placement to new and existing shareholders, priced at 18c a share.

The institutional placement will comprise two tranches, with the first 288.99-million shares to be issued under the company’s existing placement capacity, while a further 6.63-million shares will be issued subject to shareholder approval at a general meeting planned for late July or early August.

In addition to the share placement, Tamboran has also signed a heads of agreement (HoA) for a $9-million convertible note with New York-listed Helmerich & Payne, which is also subject to approval.

The convertible note has a five-year term and a 5.5% interest rate, with a conversion floor of 21c a share and a ceiling of 30c a share.

Tamboran told shareholders that the note is expected to cover the cost of mobilisation of the H&P superspec FlexRig Flex 3 Rig into Australia during H1 2023. This will allow Tamboran to focus on investing into drilling activities to mature resources and unlock gas in the Beetaloo basin.

Furthermore, Tamboran would also launch a share purchase plan (SPP), priced at 18c each, to raise a further A$5-million, under which eligible shareholders could subscribe for up to A$30 000 of new additional shares in the company.

The SPP will open on July 6 and close on July 27.

“Tamboran’s near A$71.4-million capital raise brings the company one step closer to commercialisation of our acreage in the Beetaloo basin and funds several key milestones that are expected to unlock this vast, low reservoir CO₂ gas resource,” said MD and CEO Joel Riddle.

“We are fully focused on delivering commercial flow rates from the Shenandoah South and Amungee areas. De-risking of these two areas provides us with optionality for initial production via mini-liquefied natural gas (LNG), as early as 2024, and the proposed pilot development, targeting first production by the end of 2025. Tamboran recently entered into exclusive agreements with Clean Energy Fuels Australia that could support production from either of these locations.

“The capital raise also supports Tamboran’s growth ambitions to supply Beetaloo gas into the East Coast gas and global LNG markets. This ambition is backed by two key announcements, a strategic partnership with the midstream pipeline provider, APA Group, and non-binding memorandums of understanding with BP and Shell, two of the world’s largest LNG portfolio trading and energy companies.

“Tamboran aims to play a key role as being part of the solution to supporting both the Australian domestic gas market and the Asia Pacific as economies move away from coal-fired power during the energy transition,” said Riddle.