Tamboran Resources Corporation · NYSE:TBN
Tamboran Resources — Investor Presentation (July 2024)
43 slides from Tamboran Resources's investor presentation, Jul 12, 2024
Slide 1: Investor Presentation July 2024
For personal use only NYSE: TBN, ASX: TBN Investor Presentation July 2024 SHENANDOAH SOUTH WELLPAD, NORTHERN TERRITORY, AUSTRALIA
Slide 2: Disclaimer
Disclaimer The information in this presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include statements
Slide 3: Disclaimer
Disclaimer Tamboran is subject to known and unknown risks, many of which are beyond the ability of Tamboran to control or predict. These risks may include, for example, movements in oil and gas prices, risks associated with the development and operation of the acreage, exchange rate fluctuations, an
Slide 4: Tamboran's Executive Team & Board of Directors
Tamboran’s Executive Team & Board of Directors Deep technical knowledge and experience in early-stage E&P Executive Team Board of Directors For personal use only Joel Riddle Mr. Dick Stoneburner - Chairman Managing Director and CEO − >27 years’ experience in upstream oil and gas − Joined Tamboran Re
Slide 5: Tamboran Resources – Emerging next generation E&P company
Tamboran Resources – Emerging next generation E&P company Our role in the energy transition 65 140 For personal use only Our Vision 44 Estimated LNG trade volume To play a role in the global energy transition by in 20303 responsibly investing in the development of (million tonnes per annum) natural
Slide 6: Investment highlights
Tamboran Resources Corporation (NYSE: TBN, ASX: TBN) Investment highlights For personal use only Largest acreage operator in the Beetaloo Basin with ~1.9 million net prospective acres, similar shale properties to the core Marcellus shale Commercialization targeting premium gas markets with pricing a
Slide 7: Tamboran's dominant operated Beetaloo Basin acreage position
Tamboran’s dominant operated Beetaloo Basin acreage position Key operator of ~2 million net acres in world class Beetaloo Basin shale play Tamboran Resources Corporation (as at close July 09, 2024) Tamboran’s Beetaloo Basin acreage position ~2 million acres (net) For personal use only Stock code: TB
Slide 8: Target markets to support Tamboran's Beetaloo growth strategy
Target markets to support Tamboran’s Beetaloo growth strategy Emerging shortfalls within the NT, East Coast and international LNG gas markets Local NT gas East Coast gas International LNG For personal use only Gas flows from Blacktip (Primary Supply Projected East Coast gas market supply/demand2 Pro
Slide 9: Australian gas price premium
Australian gas price premium Australia’s domestic gas price trade at ~3x higher than the Henry Hub gas price − Australian gas contracts typically negotiated ACCC analysis of bid and offer information provided by suppliers1 For personal use only between buyer and seller over short- to medium- term pe
Slide 10: The Beetaloo Basin – One of the largest undeveloped gas resources
The Beetaloo Basin – One of the largest undeveloped gas resources in the world Remote location supported by existing pipelines, rail and road infrastructure − The Beetaloo Basin is located ~300-miles southeast of For personal use only Darwin in Australia’s Northern Territory. Remote flat location, u
Slide 11: Extensive technical de-risking over the last years in the Beetaloo Basin
Extensive technical de-risking over the last 10 years in the Beetaloo Basin Tamboran has leveraged historic exploration data to accelerate development of the Beetaloo Basin − ~9,500 kilometres (~5,900 miles) of 2D For personal use only seismic acquisition across the 5 million prospective acres in th
Slide 12: Focused strategy targeting development in the Shenandoah South area
Tamboran’s focused strategy targeting development in the Shenandoah South area Regional study leveraged learnings from successful US shale gas basins over last 10 years For personal use only − Mid-Velkerri dry gas play in deep Beetaloo West area (~1 million acres (~387,500 net) at >2,500-metre (8,20
Slide 13: Shenandoah South 1H drilled in deepest section of Mid-Velkerri gas play
Shenandoah South 1H drilled in deepest section of Mid-Velkerri gas play in the Beetaloo West area Geological rock properties at SS-1H compare favorably with those in the average Marcellus Shale dry gas window Shenandoah South 1H − SS-1H well logged ~480 ft of high quality, stacked Middle Velkerri sh
Slide 14: Shenandoah South 1H optimized with US-style completion design
Shenandoah South 1H optimized with “US-style” completion design Incorporating US completion expertise to improve well performance T3H previously delivered highest flow test in Beetaloo Basin For personal use only Drilled with 4 ½” casing, ~60 bpm with cross-link gel design EP 161 Tanumbirini 3H well
Slide 15: Shenandoah South 1H IP90 flow test results
Shenandoah South 1H IP90 flow test results SS-1H well achieved the highest normalized IP90 flow test in the Beetaloo Basin to date IP90 Flow Rate For personal use only − IP90 flow rate of 5.8 MMcf/d1 20.00 exceeding pre-drill expectation 18.00 − Steady, low-decline during the 16.00 IP90 test period,
Slide 16: Shenandoah South 1H IP90 performance vs. Marcellus Shale producers
Shenandoah South 1H IP90 performance vs. Marcellus Shale producers Favorable IP90 comparison to average Marcellus Shale well performance Average 12-Month Type Curve (By Marcellus Producers) Marcellus Shale (US) For personal use only − The average IP90 flow rate from the Mid Velkerri B Shale at SS-1H
Slide 17: SS-1H results high-grade ~1 million acres in deep Mid-Velkerri gas play
SS-1H results high-grade ~1 million acres1 in deep Mid-Velkerri gas play in Beetaloo West area Proposed Pilot location selected due to attractive rock properties and close proximity to existing pipeline corridor For personal use only Targeting development in deep Beetaloo West area: − ~1 million gro
Slide 18: Tamboran's proposed Beetaloo Basin development strategy
Tamboran’s proposed Beetaloo Basin development strategy Aspiration to grow Beetaloo Basin gas production to 2 Bcf/d (gross) as early as 20301 to supply NT, East Coast and Asia Pacific markets For personal use only Phase 4 – NTLNG (2035+) Potential additional volumes to NTLNG 2 Bcf/d (~780 MMcf/d net
Slide 19: Tamboran's Strategic Partnerships in place to accelerate development
Tamboran’s Strategic Partnerships in place to accelerate development Delivering on commitment to import US technology and build additional pipelines into the Beetaloo Basin − Tamboran / H&P (NYSE: HP) Strategic Alliance to import modern US unconventional drilling rigs For personal use only into the
Slide 20: Phase 1: Proposed Shenandoah South Pilot Project
Phase 1: Proposed Shenandoah South Pilot Project Targeting first gas from proposed ~40 MMcf/d (gross) Pilot Project in 1H 2026 − Proposed Pilot Project targeting six upfront horizontal wells For personal use only drilled in 2024-25 to achieve ~40 MMcf/d (gross) plateau production, subject to funding
Slide 21: Phase 1: Proposed Pilot Project fully contracted
Phase 1: Proposed Pilot Project fully contracted Binding, take-or-pay Gas Sales Agreement with investment grade Northern Territory Government as the customer For personal use only − Customer: Northern Territory Government (Aa3, stable) − Volume: ~40 MMcf/d (~19 MMcf/d net Tamboran) − Term: Total ter
Slide 22: Phase 2/3: Multiple pathways to commercialize Beetaloo Basin gas
Phase 2 / 3: Multiple pathways to commercialize Tamboran’s Beetaloo Basin gas Oversized new pipelines to provide new feed gas to East Coast Gas Market and Darwin LNG Market East Coast Domestic Gas Market For personal use only Phase 2 Aggregate volume of 875 MMcf/d to offset projected 24-36” Open sho
Slide 23: Phase 3: Tamboran's proposed NTLNG Project at Darwin
Phase 3: Tamboran’s proposed NTLNG Project at Darwin Targeting first fully integrated LNG development in onshore Northern Territory − Northern Territory Government awarded Tamboran a ~420-acre (170-hectare) site at Darwin in May 2023 For personal use only − The Australian Federal Government is contr
Slide 24: Latest wells proving operational capability and transfer of US shale technology
Latest wells proving operational capability and transfer of US shale technology H&P rig already delivering a significant step change in drilling efficiency, reaching TD at Amungee NW 3H in <18 days Beetaloo Basin wells For personal use only 0- − Legacy wells within the Basin have historically taken
Slide 25: Pathway to reducing drilling, stimulation and completion costs
Pathway to reducing drilling, stimulation and completion costs Targeting long-term development well cost of US$16 million per well (~10,000 feet, 60 stages) Total drill, frac and completion cost (US$ millions) For personal use only 43 31 27 23 23 21 16 2024 2025 2026 2028+ 2019 2022/23 2023 (1 well/
Slide 26: Pilot Project will target significant D&C cost reduction
Shenandoah South Pilot Project will target significant D&C cost reduction Reducing costs via construction of a local sand mine and volume discounts on cement, mud and chemicals Local Sand Mine opportunities Sand For personal use only − Working closely with local company to source local sand close to
Slide 27: Proposed Pilot Project to further optimize US-style well design
Proposed Pilot Project to further optimize “US-style” well design Incorporating learnings from SS-1H to further improve well performance and cost efficiency For personal use only Shenandoah South 1H 10 stimulation stages over ~1,640 ft (164 ft spacing) Targeting ~5 mmscfd per 1,000-metre (3,280 feet
Slide 28: Upcoming catalysts
Upcoming catalysts Progressing towards production from proposed ~40 MMcf/d (gross, ~19 MMcf/d net) Pilot Project in 1H 2026 ✓ April 2024 For personal use only Announce SS-1H IP90 flow rates ✓ 2Q 2024 Finalize binding Gas Sales Agreement for proposed Pilot Project ✓ 2Q 2024 Complete Concept Select en
Slide 29: Appendix A: Additional Information
Appendix A: Additional Information For personal use only 29
Slide 30: Tamboran's Board of Directors
Tamboran’s Board of Directors Deep technical knowledge and track record in early-stage E&P success For personal use only Dick Stoneburner Joel Riddle Fred Barrett Patrick Elliott Chairman Managing Director and CEO Non-Executive Director Non-Executive Director − Over 35 years’ experience in − Joined
Slide 31: Tamboran's Board of Directors (Cont'd)
Tamboran’s Board of Directors (Cont’d) Deep technical knowledge and track record in early-stage E&P success For personal use only David Siegel Stephanie Reed Ryan Dalton John Bell Andrew Robb AO Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive
Slide 32: Tamboran is the largest acreage operator in the Beetaloo Basin
Tamboran is the largest acreage operator in the Beetaloo Basin ~1.6 million acres of Mid Velkerri B Shale >2,000 metres deep acquired from Sweetpea (2021) and Origin (2022) − Dominant acreage position across the For personal use only deepest and highest productive regions in the Beetaloo Basin − Ope
Slide 33: Regional Geology provides ideal setting for multi-decade Beetaloo development
Regional Geology provides ideal setting for large, multi-decade Beetaloo development Comparison of Marcellus and Beetaloo Shale depositional basins Lithology Distribution Depth Thickness Appalachian Basin − Foreland basin formed during For personal use only tectonic collision. − Produces asymmetrica
Slide 34: SS-1H IP30 flow test vs. other Beetaloo Basin
SS-1H IP30 flow test vs. other Beetaloo Basin Achieving the highest normalized IP30 flow test in the Beetaloo Basin to date Shenandoah South 1H Tanumbirini 3H Tanumbirini 2H Carpentaria 2H Carpentaria 3H (SS-1H) (T3H) (T2H) (C2H) (C3H) For personal use only Beetaloo Permit EP 117 EP 161 EP 161 EP 18
Slide 35: SS-1H IP90 flow test vs. other Beetaloo Basin
SS-1H IP90 flow test vs. other Beetaloo Basin Achieving the highest normalized IP90 flow test in the Beetaloo Basin to date Shenandoah South 1H Tanumbirini 3H Tanumbirini 2H Carpentaria 2H Carpentaria 3H (SS-1H) (T3H) (T2H) (C2H) (C3H) For personal use only Beetaloo Permit EP 117 EP 161 EP 161 EP 18
Slide 36: Bryan Sheffield | Strategic Alliance
Bryan Sheffield | Strategic Alliance Bryan Sheffield brings over 20 years of shale, unconventional and public company expertise − Sheffield, through Sheffield Holdings, first began For personal use only acquiring interests in Tamboran in November of 2021 − Since then, Sheffield has grown to be the l
Slide 37: Potential development of the Beetaloo is a transformational opportunity for the NT
Potential development of the Beetaloo is a transformational opportunity for the NT Delivery of material royalties and job opportunities to the region For personal use only Under Tamboran’s 2030 plan to potentially deliver 2 Bcf/d1 gas production from the Beetaloo Basin, the Northern Territory could
Slide 38: Attractive Australian fiscal regime
Attractive Australian fiscal regime For personal use only − ~9% Private Royalties1 − 25% leasehold royalty − Crown royalty ranges from − 10% Northern Territory burden 1% to a maximum of 40% Government Royalty − 21% Corporate Tax Rate depending on payout status, commodity, − Native Title Royalty2 − S
Slide 39: Gas market dynamics
Gas market dynamics Material difference between Australian and US gas market dynamics For personal use only − Illiquid spot market − Liquid spot market via Henry Hub − Pricing typically negotiated − Volatility in pricing makes long between upstream E&P and end term debt financing less desirable user
Slide 40: Phase 3: Tamboran's proposed NT LNG Project at Middle Arm
Phase 3: Tamboran’s proposed NT LNG Project at Middle Arm Proposed NTLNG project leading Australia’s third wave of LNG, focused on supporting Asia Pacific energy transition1 Location LNG Capacity Marine For personal use only Northern Territory Concept Select phase to Federal Government Government aw
Slide 41: Australian Government's new GHG regulations and Net Zero Scope 1 rules
Australian Government’s new GHG regulations and Net Zero Scope 1 rules on the Beetaloo Basin First regulated Net Zero Scope 1 gas development in the world − Australian Government’s Safeguard Mechanism establishes “GHG baselines” for facilities in Australia Tamboran's Beetaloo Basin asset has low-res
Slide 42: The Beetaloo – Potential emissions reduction opportunity
The Beetaloo – Potential emissions reduction opportunity Tamboran’s business model targets are expected to deliver first commercial gas with Net Zero equity Scope 1 and 2 emissions1 Potential for ~60 million tonnes CO2e per annum reduction in global emissions if 3 Bcf/d of Beetaloo Basin gas For per
Slide 43: For personal use only
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