Tamboran Resources Corporation · NYSE:TBN
Tamboran Resources — Merger or Acquisition (September 2022)
42 slides from Tamboran Resources's merger presentation, Sep 20, 2022
Slide 1: Acquisition of Origin Energy's Beetaloo Basin Assets and Equity Raising
For personal use only Acquisition of Origin Energy’s Beetaloo Basin Assets and Equity Raising 20 September 2022 1 TANUMBIRINI WELL PAD, NORTHERN TERRITORY, AUSTRALIA
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Tamboran Resources Limited (Tamboran). The information in this presentation is information of a general nature and is subject to change without notice. This presentation contains information in a summary form only and should For personal use only be
Slide 3: Agenda
Agenda For personal use only 1. Transaction Details 2. Asset Overview 3. Appendix A: Transaction Timeline 4. Appendix B: Upcoming Beetaloo Basin Catalysts 5. Appendix C: Improving Economics 3
Slide 4: Transaction Details
For personal use only Details Transaction
Slide 5: Transaction rationale
Transaction rationale Transformational acquisition of Origin Energy’s assets consolidates Tamboran as the leading Beetaloo Basin company For personal use only Consolidation Pathway to New Assets Existing Assets Provides Scale Cash Flow Dominant acreage position in 10-year Gas Sales (38.8%) the Beeta
Slide 6: Transaction overview
Transaction overview Up to ~$195 million funding drives Tamboran’s transformational growth and accelerated development of the Beetaloo Basin For personal use only − Tamboran and Bryan Sheffield (“Sheffield”), through a 50:50 JV entity (“the JV”), have agreed to jointly acquire Origin Energy’s (“Orig
Slide 7: Acquisition and drilling program funded through $138 million equity raising
Transaction overview Acquisition and drilling program to be funded through $138 million equity raising For personal use only − $138.0 million equity raising (the “Placement”), comprising: Equity raising size o $98.0 million private placement of shares to strategic partners and US cornerstone investo
Slide 8: Tamboran Resources corporate overview
Tamboran Resources (ASX: TBN) Corporate overview For personal use only Tamboran Resources Limited (as at close 14 September 2022) 12-month share price performance6 Pre-Deal Pro Forma 0.450 14.0 0.400 Share Price (A$ per share) 12.0 Stock code: TBN (ASX), TBNNY (OTC) Volume (million shares) 0.350 10.
Slide 9: Tamboran's Board of Directors and key management
Tamboran’s Board of Directors and key management Deep technical knowledge and track record in early-stage E&P success For personal use only Dick Stoneburner Dan Chandra Chairman Non-Executive Director − Over 35 years’ experience in petroleum geology. − Over 20 years of investing experience across a
Slide 10: Transformational Beetaloo Basin acquisition
Transformational Beetaloo Basin acquisition Acquisition of Origin Energy’s assets will result in a dominant acreage position across the “Core” Beetaloo For personal use only Tamboran acquires 38.75% net interest and operatorship of Origin Energy’s assets (EP 98/117/76) in the Beetaloo Basin. New Ass
Slide 11: Scale of consolidated acreage on par with the US Marcellus Shale
Scale of consolidated acreage on par with the US Marcellus Shale Tamboran’s continuous Beetaloo Basin acreage equivalent to double EQT’s Marcellus acreage position For personal use only New + Existing Assets (38.8%) (25%) (38.8%) (38.8%) (100%) LEGEND (100%) “Core” Marcellus Greater Marcellus Tambor
Slide 12: Significant resource upside
Significant resource upside Acquisition secures Tamboran a material acreage position with opportunity for significant future resource growth For personal use only Prospective net acres (million acres)1 Net 2C Contingent Gas Resources (BCF)1 Net 2U Prospective Gas Resources (TCF)1,2 +445% +270% +370%
Slide 13: $104 million investment from strategic US unconventional experts
$104 million investment from strategic US unconventional experts Strategic partnership brings significant US unconventional development expertise to the Beetaloo Basin For personal use only About Bryan Sheffield About Helmerich & Payne, Inc. (H&P) Mr. Sheffield was the Founder, Chairman and CEO of E
Slide 14: Opportunity delivers scale
Opportunity delivers scale ASX top 10 listed E&P with significant gas resource base and attractive multiple For personal use only Top 10 ASX Listed E&P ($ million)1 Net 2P + 2C Resources (mmboe)2 EV/(2P + 2C) ($ per boe)2 600 Excludes Woodside, Santos, Beach and Karoon Excludes Woodside and due to s
Slide 15: Business Strategy & Asset Overview
Business Strategy & Asset For personal use only Overview 15
Slide 16: Improved platform to material growth and upside to an initial ~1 BCFD gas business by 2030
Improved platform to material growth and upside to an initial ~1 BCFD1 gas business by 2030 Focused on accelerating commercialisation of the “World Class” Beetaloo Basin For personal use only Tamboran aims to supply gas to the Australian East Coast Pathway to revenue of ~$3 billion3 per annum and gl
Slide 17: Pathway to ~5.0 TCF of net 2P gas reserves by end 2025
Pathway to ~5.0 TCF of net 2P gas reserves by end 2025 Targeting first production in 2025 from the proposed ~100 mmscfd Amungee Pilot Development in EP 98 For personal use only Five wells planned over the next 18 months have potential to deliver net 2C contingent gas resources of ~2.9 TCF1. − 2022:
Slide 18: Upcoming wells to be optimised with US-style fracture stimulation design
Upcoming wells to be optimised with “US-style” fracture stimulation design Increased lateral length designed to improve flow rates and increase well economics For personal use only EP 161 Tanumbirini 2H and 3H wells IP30 flow tests from T2H and T3H delivered 3.3 and 5.2 mmscfd per 1,000-metre (3,280
Slide 19: Significant near-term potential upside
Significant near-term potential upside Potential for ~ 0.7 TCF of 2C contingent gas resources to be converted to 2P reserves by the end of 20231 For personal use only 8.0 7.0 2025 Tamboran 6.0 5 TCF Targeting potential 2P Reserves2 5.0 Value ($ billions) 4.0 3.0 Exxon/ InterOil Transaction Average (
Slide 20: Strategic initiatives provide foundation for near-term cash flow generation
Strategic initiatives provide foundation for near-term cash flow generation Aiming to secure long-term LNG export solution by the end of calendar year 2023 For personal use only − Strategic alliance between Tamboran and H&P to import a modern US unconventional Securing a drilling rig into Australia.
Slide 21: Targeted full-cycle cost from Beetaloo: Domestic and global LNG markets
Targeted full-cycle cost from Beetaloo: Domestic and global LNG markets Proposed Amungee Pilot Development will initially target the Australian East Coast domestic gas market For personal use only 1 2 3 2028+ Illustrative pipeline to commercialise Beetaloo gas 2023-2024 2025 Domestic & LNG backfill
Slide 22: Beetaloo Basin positioned to be one of the lowest cost producers into Asia Pacific LNG
Beetaloo Basin is positioned to be one of the lowest cost producers into Asia Pacific LNG market LNG feed gas from Beetaloo has potential to be comparable with Qatar LNG Expansion and Papau LNG For personal use only 1 12.00 Delivered cost to Japan for LNG projects (US$ per mmBtu) 10.00 8.00 6.00 ~US
Slide 23: Appendix A: Transaction Timeline
Appendix A: For personal use only Transaction Timeline 23
Slide 24: Proposed timeline and mechanics
Proposed timeline and mechanics Capital raise process and timeline For personal use only Event Date (2022) Placement Announcement of the results of Placement and ASX Investor Presentation released Tuesday, 20 September Trading halt / voluntary suspension lifted and shares recommence trading Tuesday,
Slide 25: Sources and uses of funds
Sources and uses of funds Tamboran to fund the acquisition through an equity placement and strategic partnership with Sheffield For personal use only Sources of funds Uses of funds Sources1 $ million Uses of funds $ million Cash and equivalents2,3 16 Cash payment for Origin’s assets (50% TBN, 50% Sh
Slide 26: Appendix B: Upcoming Beetaloo Basin Catalysts
Appendix B: For personal use only Upcoming Beetaloo Basin Catalysts 26
Slide 27: EP 98 drilling planned to commence in October 2022
EP 98 drilling planned to commence in October 2022 Amungee 2H and 3H wells to provide immediate catalysts and resource maturation within the acquired EP 98 permit For personal use only Two wells planned for 2022 drilling program ✓ All regulatory and stakeholder approvals in-place or on track. ✓ Silv
Slide 28: EP 136 civil works and 2D seismic operations completed
EP 136 civil works and 2D seismic operations completed safely and on budget On track to spud Maverick 1V shortly For personal use only Approvals to drill Maverick 1V ✓ Received all regulatory approvals, including Land Access (May 2022) and Environmental Management Plan (August 2022)1. ✓ M1V spudded
Slide 29: Beetaloo Basin catalysts
Beetaloo Basin catalysts Five wells to be drilled in H2 2022 across the Beetaloo expected to support further de-risking and potential resource additions For personal use only Amungee 2H and 3H (EP 98) Tanumbirini 2H/3H (EP 161) Tamboran 38.75%*, Sheffield 38.75%, Falcon Santos 75%*, Tamboran 25% Oil
Slide 30: Tamboran's consolidated asset position in the Core Beetaloo
Tamboran’s consolidated asset position in the “Core” Beetaloo Operator of EP 136 (100%) and EP 98/117/76 (38.75%) provides options for Tamboran to lead the pace of development For personal use only Depth Structure Map of Mid-Velkerri “B Shale” 1 2 3 EP 161 EP 136 EP 98/117/76 3 25% Tamboran Interest
Slide 31: Appendix C: Improving Economics
Appendix C: For personal use only Improving Economics 31
Slide 32: Potential for competitive economics from Beetaloo development
Potential for competitive economics from Beetaloo development Targeting upstream costs of $2.00 – 3.00 per mscf1 For personal use only Horizontal well 30-day IP flow test (mmscfd) 1,000-metre horizontal well 2.0 mmscfd 2.5 mmscfd 3.5 mmscfd 4.0 mmscfd 5.5 mmscfd 6.0 mmscfd 3,000-metre development we
Slide 33: NSAI estimates of contingent gas resources
NSAI estimates of contingent gas resources 268% increase to net 2C contingent gas resources1,2 For personal use only Pre-Acquisition Net 38.75% Acquired Interests Post Completion Contingent Gas Resources (EP 161 + 136) Contingent Gas Resources Contingent Gas Resources Low Estimate Best Estimate High
Slide 34: NSAI estimates of prospective gas resources
NSAI estimates of prospective gas resources 370% increase to net 2U prospective gas resources1,2 For personal use only Pre-Acquisition Net 38.75% Acquired Interests Post Completion Unrisked Prospective Gas Resources Unrisked Prospective Gas Resources Unrisked Prospective Gas Resources Low Estimate B
Slide 35: Resources statement
For personal use only Resources statement The estimates of contingent and prospective gas resources in the permits contained in the announcement were prepared by Netherland, Sewell & Associates, Inc., qualified resource evaluators. The resource assessment was independently carried out by John G. Hat
Slide 36: Disclaimer: Resource disclosure
Disclaimer: Resource disclosure LR 5.25.1 Contingent and Prospective Resource estimates for Origin Energy’s Permits (EP76, EP98 and EP117) have been assessed as of 31 August 2022. Contingent and Prospective Resources estimates for Tamboran Resources’ EP136 and EP161 were also assessed as of 31 Augus
Slide 37: Risks associated with the acquisition of the Origin Assets
Risks associated with the acquisition of the Origin Assets (a) Due diligence in relation to Origin Energy’s The Company has undertaken a due diligence process in respect of Origin Energy’s Beetaloo Sub-basin assets to be acquired by Tamboran (Origin Assets), which relied in part on the review of geo
Slide 38: Risks specific to the Company and the industry
Risks specific to the Company and the industry (k) Exploration risk Gas exploration and development is speculative and involves elements of significant risk with no guarantee of success. Tamboran may not find any or may find insufficient hydrocarbon reserves and resources to commercialise, which wou
Slide 39: Risks specific to the Company and the industry
Risks specific to the Company and the industry (x) Regulatory risk Tamboran must comply with relevant laws and regulations in each jurisdiction it operates as it applies to the environment, tenure, land access, landholders and native title holders. Non-compliance with these laws and regulations and
Slide 40: Specific Risks in relation to the Sweetpea Assets
Specific Risks in relation to the Sweetpea Assets (nn) Overriding Royalties and Area of Mutual Interest Sweetpea Petroleum Pty Limited (Sweetpea) is a wholly owned subsidiary of Tamboran and its assets are subject to overriding royalty interests (ORRI) and an Area of Mutual Interest (AMI) obligation
Slide 41: Risks associated with investing in the Shares
Risks associated with investing in the Shares (ww) The Shares may not be a suitable investment Each potential investor in the Shares must determine the suitability of that investment in light of its own circumstances. Furthermore, each potential investor in the Shares should: • For personal use only
Slide 42: For personal use only
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