Tamboran Resources Corporation

Greetings and welcome to the Tamborin Resources Fiscal Year 2025 fourth quarter earnings release. At this time, all participants are in a listen-only mode. A question and answer session will follow the phone presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dick Stoneburner. Thank you. You may begin.

Hello, everyone, and welcome to Tamborin Resources Financial Year 2025 Fourth Quarter Earnings Presentation. My name is Dick Stoneburner, and I am the Chairman and Interim CEO of Tamborin. And I'm joined here today by our Chief Financial Officer, Eric Dyer. Moving to slide two, you can see our disclaimer, which relates to forward-looking statements within the presentation. I encourage you to review this at your leisure. Moving to slide three. The fourth quarter has been a period of incredible activity for Tamborin. We delivered and announced record flow rates from the 5,500-foot horizontal section in the SS2H sidetrack worn well. Importantly, the well delivered an extremely flat decline over the 90-day period, including a surprising 2% increase over the last 30 days of testing without downhole intervention or changes to the choke. I believe we could be seeing the enhanced matrix connectivity achieved during the simulation program and performance from a formation that has 40 percent higher gas in place and 20 percent higher TOC than the Marcellus Shale. In July, we commenced the most aggressive drilling campaign in the history of the Bulu Basin. The program includes three wells that have been drilled utilizing batch drilling techniques, each with a 10,000-foot horizontal section within the Med Valkyrie B Shale. I'm happy to report that earlier this week, we reached TV on the second of the three wells, delivering record drilling speeds through the horizontal section in the formation. I am also proud to highlight that during the period, we received consent from native tidal holders to sell gas under the legislative appraisal framework. This is the first approval secured from native tidal holders under the new Beneficial Use of Gas legislation, allowing us to sell appraisal gas from the exploration permit for three years. The BJV will now focus on securing necessary approvals to support longer-term production. As we highlighted earlier in the quarter, we have commenced the farm-out process, incorporating approximately 400,000 acres in the most development-ready acreage in the Beetaloo Basin. We've attracted strong interest from a range of highly qualified counterparties who are attracted by the strong technical properties of our acreage and the constructive commercial and regulatory environment. Discussions are ongoing, and we will update the market at the appropriate time. Our board was also strengthened with former Pioneer Natural Resources Director and CEO, Mr. Scott Sheffield, and Mr. Philip Pace joining the company as non-executive directors. that each bring extensive leadership, operational, financial, capital raising, strategic partnering, and risk management expertise to Tamborin. We ended the quarter with U.S. $45.2 million in cash and receivables of U.S. $26 million, including U.S. $11 million proceeds from tranche two of pipe transaction, which was received in July, and US $15 million from an acreage sale to DWE. We are also progressing discussions with financiers to secure the remaining funder of the SPCF construction. Finally, I want to emphasize that our search for a new CEO continues to progress, and we expect to announce the new position before the end of the calendar year. Moving to slide four, During the quarter, we announced record IP 30, 60, and 90-day rates from the SS2H slide ST1 well, a reminder that the well was tested over approximately 5,500 feet of horizontal section within the mid-Valkyrie Shale. Rates from the well increased approximately 2 percent during the final 30 days without changes in the choke or downhole interventions. This may indicate significant matrix contribution and enhanced fracture conductivity. We have continued to compare flow rates from the Beteloo Basin's mid-Valkyrie B-Shale to the Marcellus Shale. However, what we are starting to see is the Beteloo Basin showing its own distinct character, which may indicate lower declines supported by higher gas in place, higher TOC, or total organic carbon, and higher gas saturation. Additional and longer-duration testing of these wells will support what the ultimate EUR these wells will deliver. This is the key reason for the pilot project, and we look forward to providing updates on these longer-term tests once we commence gas sales next year. Moving to the next slide, as I mentioned earlier, we have completed drilling of the first two wells in the three-well campaign. The three wells were batch drilled meaning we drilled each section of the well separately, which allows for much more efficient drilling operations. This has only been able to be efficiently completed in the Bealoo Basin using Homer and Payne's SuperSpec FlexRig 3. We continue to learn from our drilling operations, and this program has seen the implementation of anti-vibrating technology to address tool failures, as well as modifications to the MET system. These changes have resulted in year-on-year improvement on basin-leading drilling rates within the target Valkyrie B shale. We have seen a level of tool failure within our drilling program, resulting in non-productive time on the SS4 and 5H wells. We are continuing to work with our oilfield service providers to reduce this non-productive time and improve further on our drilling profiles as we target SPUD to total depth that is potentially considerably less than 25 days. Moving to the next slide, I want to provide an update on the two infrastructure projects being delivered to transport our additional volumes to the local pipeline network and achieve successful gas sales. Firstly, the SPCF is a Tamborne and DWE-owned compression and dehydration facility that will process the gas ahead of delivering into the pipeline. We secured approval from the Northern Territory government earlier this quarter and completed the key earthworks on the site. The compressors and the TEG unit have been delivered to the site and lifted to their final locations. Essentially, we have all pieces in place to start the pipework and connections of the facility, head of completion and commissioning in mid-2026, subject to duration of the wet season. The Sturt Plateau Pipeline is owned by the Australian pipeline company APA Group, which will connect the SPCF to the gas sales point on the APA-owned Amadeus gas pipeline, which is a local pipeline network in the Northern Territory. APA received approval from the government to commence construction of the pipeline and is expected to be completed by the end of the year. Tamborin will pay a fixed monthly tariff to APA for use of the pipeline. Moving to our cash position, we enter the quarter with U.S. $45.2 million in cash, up 20 million U.S. following the receipt of cash relating to the first tranche from the pipe transaction undertaken in May. Tamborin shareholders approved the second $11 million U.S. tranche in July. The majority of cash flow related to funding of these SS2H ST1 stimulation and flow testing and the successful SS3H remediation activities. Sanborn expects to receive the US $15 million cash payment from Daily Waters Energy by the end of the year. Our cash balance and receivables are US $71.1 million We continue to move towards securing a financing facility to fund our remaining share of the SPCF infrastructure, and we hope to be able to announce this in the near future. Moving to slide eight, you can see that we have a busy year ahead of us as we deliver on our commitment to commence gas sales from the Beedlew Basin. If I think back to 15 months ago when we listed Tamborin on the New York Stock Exchange, we made a commitment to commence gas sales in mid-2026. Since then, with huge credit to our team and key stakeholders, we have maintained this schedule and are getting closer to delivering on this promise. I believe the Beedaloo Basin has the potential to transform not only the Northern Territory, but Australia's East Coast as a whole, delivering energy security to Territorians and a pathway to potentially securing long-term energy security for Australia's East Coast gas market. I want to thank our shareholders for the continued support and look forward to providing an update on our activities at our next earnings call in November. With that, I would like it to hand over to the operator for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. for participants using speaker equipment. It may be necessary to pick up the handset before pressing the start keys. And one moment, please, while we poll for questions. Our first question comes from the line of Scott Hanold with RBC Capital. Please proceed with your question.