Tamboran and Santos Execute Memorandum of Understanding to Advance Studies for Darwin LNG Expansion By Investing.com

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• Tamboran Resources Corporation and Santos Limited (ASX: STO) have entered into a non-binding Memorandum of Understanding (MOU) to undertake technical studies in relation to the potential Darwin LNG (DLNG) Train 2 expansion and collaborative work on the jointly owned EP 161 acreage (Santos 75% operator, Tamboran 25%) in the Beetaloo basin.
• The objective of the study is to evaluate options for supplying a potential expansion at the existing DLNG facility in Middle Arm. DLNG is approved at a nominal 10 million tons of LNG per annum (MTPA), with this option to expand to ~6 MTPA.
• Santos is the operator of the existing DLNG project with a 43.4% working share.
• Tamboran and Santos are joint venture partners on the EP 161 acreage containing ~300,000 hectares of Mid Velkerri B shale at depths below 8,850 feet (~2,700 meters). The region showed Marcellus Basin-type decline curves from two Tanumbirini wells that were drilled and tested for flow in 2022.
• Tamboran remains committed to advancing the development of the proposed NTLNG project in Middle Arm, which is currently in the pre-FEED study phase with Bechtel Corporation.
• Tamboran and Santos are committed to supplying natural gas from the Beetaloo Basin to both the Australian domestic gas market and the international LNG market.

NEW YORK–(BUSINESS WIRE)–Director and CEO of Tamboran Resources Corporation, Joel Riddle, said:

The Memorandum of Understanding between Tamboran and Santos aims to explore commercialization opportunities for the development of DLNG Train 2 using natural gas obtained from the extensive potential gas resources within the Beetaloo Basin.

With approximately two million net potential hectares across the Beetaloo Basin, Tamboran possesses significant gas resources capable of supplying the Northern Territory and East Coast of Australia gas market for decades. With multiple commercialization pathways through the Darwin and Gladstone LNG markets and the East Coast domestic gas market, Tamboran is well placed to assess opportunities to accelerate value accretion for our shareholders.

Tamboran and Santos have been partners in EP 161 acreage, which hosts the Beetaloo East area, for more than a decade.

We believe that the shale within the deepest Beetaloo East region is equal to some of the high-grade shale grades we have successfully unlocked in the Shenandoah South area of ​​Beetaloo West. Beetaloo East is the location of the Tanumbirini wells, which were drilled and tested for flow in 2022 and were the first wells in the basin to show Marcellus Basin-style decline curves, albeit with underpowered equipment, drilling and stimulation techniques.

We look forward to progressing discussions with Santos to unlock this significant shale gas resource and contribute to the expansion of DLNG in Darwin. This development has the potential to deliver royalties to the Northern Territory Government while also creating jobs and royalties for Indigenous holders in the region.

EP 161 interest

1Denotes operator EP 161 surface.

This post has been approved and authorized for publication by Joel Riddle, 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 owner and operator of approximately 1.9 million net potential hectares 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 and operating interest in EPs 98, 117 and 76, a 100% working and operating interest in EP 136 and a 25% non-operating working interest in EP 161, located in the Beetaloo Basin.

Waiver

Tamboran makes no representations, warranties or guarantees as to the accuracy or likelihood of fulfillment of any forward-looking statement or any outcome expressed or implied by any forward-looking statement. Forward-looking statements in this report reflect expectations that existed as of the date hereof. Except as required by applicable law or the ASX Listing Rules, Tamboran disclaims any duty or obligation to publicly update any forward-looking statements or discussions of future financial prospects, whether as a result of new information or future events.

The information contained in this publication 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 fullest extent permitted by law, Tamboran and its officers, employees, agents and advisors make no warranties, representations or guarantees as to the accuracy, completeness or reliability of the information contained in this presentation. Furthermore, none of Tamboran or its officers, employees, agents or advisers accept, to the extent permitted by law, liability for any loss, claim, damage, cost or expense arising out of or in connection with the information contained in this publication.

Note on forward-looking statements

This press release contains forward-looking statements regarding 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 and additions. Forward-looking statements reflect the Company’s current expectations and projections about future events at the time, and therefore involve uncertainty and risk. The words believe, expect, predict, will, could, would, should, perhaps, plan, estimate, intend, predict, potentially, continue, and the negatives of these words and other similar expressions generally identify forward-looking statements.

The Company’s future financial performance may differ from expectations due to a number of factors, including but not limited to: our early stage of development with no expected material revenues through 2026 and our limited operating history; substantial additional capital required for our business plan, which we may not be able to raise on acceptable terms; our strategy to deliver natural gas to Australia’s east coast and select Asian markets depends on the construction of additional pipeline capacity, which may not be secured; the lack of proven reserves and the risk that our drilling will not produce 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; challenges associated with importing US practices and technology into the Northern Territory, which could affect our business and growth due to limited local experience; the critical need for timely access to appropriate equipment and infrastructure, which may affect our market access and execution of our business plan; the operational complexities and inherent risks of drilling, completion, workover and hydraulic fracturing operations that could adversely affect our business; volatility in natural gas prices and their potential adverse effect on our financial condition and operations; risks of construction delays, cost overruns and adverse effects on our financial and operating results associated with midstream projects; the potential fundamental impact on our business if our estimates of Beetaloo are materially inaccurate; the concentration of all our assets and operations in Beetaloo, which makes us vulnerable to region-specific risks; significant doubt caused by our recurring operating 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 operating costs and feasibility or result in significant liabilities; community opposition that could result in costly delays and impede our ability to obtain necessary government approvals; research and development activities at 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 after commercial production commences, with internal targets for operational net-zero, which may increase our production costs; increased attention to ESG issues and environmental protection measures that could negatively affect our business; risks associated with our corporate structure; risks associated with our common stock and CDIs; and other risk factors discussed in this report and the Company’s filings with the Securities and Exchange Commission.

It is not possible to predict or identify all such factors. All forward-looking statements in this document are based on certain assumptions and analyzes made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it deems appropriate under the circumstances. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from expectations. While the Company continuously monitors trends and uncertainties affecting the Company’s results of operations and financial condition, the Company undertakes no obligation to update or supplement any specific forward-looking statements contained in this document.

See the original version on businesswire.com: https://www.businesswire.com/news/home/20250122852542/en/

Investor inquiries:

Chris Morbey, Vice President Corporate Development and Investor Relations
+61 2 8330 6626
Investors@tamboran.com

Media inquiries:

+61 2 8330 6626
Media@tamboran.com

Source: Tamboran Resources Corporation