Tamboran has received a giant vote of confidence from strategic US investor Bryan Sheffield, who has pumped in $20m to underpin a broader $35m placement.

Sheffield’s involvement is significant as he is no ordinary strategic investor.

He has intimate experience with unconventional oil and gas as he was the founder, chairman and chief executive of US Permian Basin independent Parsley Energy prior to its US$7.3bn ($10.1bn) acquisition by Pioneer Natural Resources Company in January 2021.

And it is likely that this same experience has drawn him to invest in Tamboran Resources (ASX:TBN), which has acreage right smack in the deepest part of the core Beetaloo Sub-basin in the Northern Territory and a joint venture with Santos (ASX:STO).

Managing director Joel Riddle welcomed Sheffield becoming a substantial shareholder (7.4%) of the company, stating that he has significant experience in the US unconventional energy sector.

“This is an exciting time for Tamboran as we complete our two horizontal well 2021 drilling campaign with our joint venture partner Santos in EP 161,” he added.

“Both wells in EP 161 are expected to be fracture stimulated and flow tested before the end of CY2021.

“Learnings from the 2021 campaign are being integrated into the planning for our operated 2022 drilling program, which includes the Maverick-1H well in EP 136, located within the Core Beetaloo.”

Sheffield also chimed in, saying that the Beetaloo sub-Basin has a number of the key elements for a world-class shale play.

“The Mid-Velkerri shale has a large aerial extent, ample thickness and great rock quality. I am excited to be part of the Tamboran story,” he concluded.

Placement details

The remaining $15m of the $35m placement priced at 37c per share, or a 3% discount to the seven-day volume weighted average price, was snapped up by existing institutional shareholders.

Proceeds will be used to accelerate the company’s CY 2022 work program on its wholly-owned EP 136.

 

 

 

This article was developed in collaboration with Tamboran Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Read MoreOil & Gas

Featured Companies

You might be interested in