Tamboran Resources Corporation

Hello, everyone, and welcome to Tamborin Resources' financial year 2026 first quarter earnings presentation. My name is Dick Stoneburner, and I'm the chairman and interim CEO of Tamborin Resources, and I'm joined here today with 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 first quarter of FY26 has been a transformational period for Tamborin as we continue to progress toward initial gas sales from the Beataloo Basin. During the quarter, we made the historic decision to sanction the Shenandoah South pilot project following execution of key commercial and stakeholder approvals. The decision to sanction the pilot project is a major milestone in the history of Tamborin resources the Beedloo Basin, and the Northern Territory. In October, we successfully completed the first batch drilling campaign in the basin, with three wells drilled and cemented with full 10,000-foot horizontal sections within the mid-Valkyrie B Shale. We commenced the Stimulation Program on the SS6H well earlier this week, and the program is planned to be completed before the end of the year. The remaining two wells from this drilling program and the SS3H, drilled and uncompleted well, are planned to be stimulated in the first half of 2026. Construction activities were commenced on the Tamborne-operated Sturt Plateau Compression Facility, also known as the SPCF. At the end of October, the project was 68% complete, and importantly, tracking the P50 budget and schedule. The project remains on track to deliver first gas in mid-2026. The AP-operated Sturt Plateau pipeline also commenced construction during the quarter and is currently within budget and on schedule. In September, we announced that we had entered into definitive agreements with Falcon Oil and Gas to acquire the subsidiaries of the company in a cash and script deal. The transaction between Tamborin and Falcon is a logical consolidation of two of the VLU Basin's most active companies and is expected to strengthen Tamborin's acreage position across the majority of the VLU depot center following the checkerboard process with DWE. Following the end of the quarter, Tamborin announced the completion of a public offer to raise 56.1 million U.S. before fees at U.S. $21 per share. and had entered into subscription agreements with certain investors to raise up to 32 million U.S. via a pipe transaction. The pipe transaction is subject to a shareholder vote, which is scheduled for January 2026. The public offer was supported by U.S. $10 million investment from leading energy technology company, Baker Hughes. Baker will provide industry-leading oilfield services and equipment while supporting optimization and efficiency initiatives for Tambourine's Beedaloo Basin development. Finally, we ended the quarter with a US $39.6 million in cash and expect to receive near-term cash inflows of $100 million US following the completion of the public offer, the pipe transaction, and the acreage sale to DWE, which was announced in May of 2025. Moving to slide four. During the quarter, we announced that Tamborne and our JV partners had officially sanctioned our Shenandoah South pilot project, targeting delivery of gas to the Northern Territory government from mid-2026. I would like to thank all of those who have made this possible, from a history of explorers who recognized the Beedaloo Basin back in the late 1990s, to key stakeholders being the supportive Native tidal holders, the Northern Land Council, and the Northern Territory Government. We would also like to thank our many shareholders for their dedicated support in bringing this project to life. The decision to take FID follows the execution of key commercial documents with the APA Group and the SPCF Trust and follows the signing of agreements with native titleholders with the support of the Northern Land Council and the Northern Territory Government stepping up to secure approvals required to commence sales of appraisal gas under the beneficial use of gas legislation. Tambourine and Daly Waters infrastructure have also secured up to $118 million U.S. via a financing facility with a consortium of lenders for the construction of the SPCF, the key infrastructure that will process gas before it reaches the local market in Darwins. The combination of our current cash balance, receivables, and debt facility puts Tamborne in a position to fund its share of the upstream drilling and stimulation of the remaining pilot project wells required to reach plateau production and construction of the SPCF. Both the construction of the SPCF and SPP are on time and on budget. We remain on track to deliver first gas sales via commissioning in mid-2026, subject to weather and successful completion of stimulation activities. Moving to slide five, in October, we successfully completed the first batch drilling program in the Beedaloo Basin, delivering an average FUD to TD of 26.7 days. Each well was successfully drilled and cemented with a 10,000-foot horizontal section within the mid-Belcary B Shale. The drilling program was completed ahead of schedule and below budget, supported by the application of new technologies to deliver increased efficiencies. Combining the best section of each of these three wells would have delivered spud to TD duration of less than 20 days, which is where I believe these wells will get to in the very near future. While we successfully completed the drilling campaign, In preparation for the stimulation of the SS4 well, we had an issue with our coil tubing. And rather than try and resolve it and risk delay with Liberty Energy, who was mobilizing the frac fleet to site, we have decided to stimulate the SS6H well instead to remain on schedule and on time. Moving to slide six. As I mentioned earlier, we have commenced the stimulation of the SS6H 6H well following the successful pressure testing earlier this month. Liberty Energy were efficient in mobilizing their equipment and preparing for the 60-stage program in the deepest region of the BDLU West Acreage. We have made some minor modification to our stimulation design following the incorporation of lessons learned from the SS1H and the SHST1 wells. The main adjustment is to replicate the profit and fluid intensity that we used on the SS1H well with target profit intensity of approximately 2,250 pounds per foot. The stimulation program is expected to be completed by the end of 2025 and commence flow testing in first quarter of 2026, subject to weather conditions and soaking duration. Moving to slide seven. Construction activities on the SPCF commenced following the approvals from the Northern Territory Government. The compressor and TEG units were delivered to site and activities to install units are underway. At the end of October, the project was 68% complete and within the P50 budget and schedule, which remains on track for mid-2026, subject to weather conditions. Tamborne and DWI secured up to U.S. $118 million in funding for the remaining costs of the SPCF facility with a consortium of lenders to cover the P90 cost estimate. The debt facility is supported by the Northern Territory Government via a $75 million Australian guarantee on Tamborne's $90 million Australian net share of the project costs. Moving to slide eight. The AP-operated Stewart Plateau pipeline commenced work during the quarter, with 60% of the pipeline now welded. As you can see in the photos, the pipeline construction is going well and is currently within budget and schedule. The project is expected to reach practical completion by the end of the year. Moving to slide nine. During the quarter, we announced the acquisition of our joint venture partner in the Beedaloo Basin, Falcon Oil and Gas. DAPN holds 22.5 non-operated interest in the acreage in the western Beteloo with Tamborin and Daily Waters Energy. This acquisition provides Tamborin with acreage covering the entire EP 76, 98, and 117 permits following the checkerboard process we announced with DWE in May 2025. Importantly, the transaction increases Tamborin's acreage position within the Phase II development area. on which we are currently progressing a farm-out process with RBC Capital Markets. On completion of the transaction, Tamborin will have the largest acreage position within the BDLU Deficit Center with 2.9 million net acres and an enterprise value of greater than $500 million U.S. The transaction is expected to complete during the first quarter of 2026. following shareholder votes from Falcon and Tamborne shareholders. Moving to slide 10, further to the RBC farm-out process, we have worked with our partners DWE to increase the acreage consideration to 500,000 acres in the Phase II development area. This plan adds approximately 100,000 acres from an area south of the original acreage position which was owned 77.5% by DWE and 22.5% by Falcon, and expected to be the Tamborne's post-shareholder vote approving the acquisition. Following the completion acquisition of Falcon and the acreage swap with DWE, Tamborne and DWE will hold 50-50 on the pilot area and 78-22 on the phase two development area. This will increase our interest in retention license 10 to 92%. Moving to slide 11, as we announced in conjunction with our public offer, leading energy technology company, Baker Hughes, joined Helmer & Payne and Liberty Energy as a strategic partner with Tim Warren. Baker supported our recent public offer with a $10 million U.S. equity investment. and we are working closely with the company to support the development of our Beetaloo Basin acreage. Tamborne and Baker have entered into a preferred services agreement where Baker will supply oilfield services and support optimization and efficiency initiatives in Tamborne's initial development. Baker Hughes has been working with us across the initial and recent Shenandoah programs. They continue to lead the new oilfield services technologies and practices that have not been utilized before in Australia. We are very thankful for their support, and this partnership establishes a framework for us to reduce costs, collaborate, and increase efficiencies across our activities. Moving to slide 12, you can see that following our recent capital raise, we are well positioned to fund our pilot project to initial gas sales in mid-2026. At the end of the quarter, we had approximately $40 million U.S. in cash on the balance sheet, with near-term cash inflows of 100 million U.S., including 53 million U.S. post fees that we have received from the recently announced public offer, $15 million U.S. from the acreage sale to DWE, which was announced in May, and 32 million U.S. of subscription agreements from certain investors under the PIPE transaction. We are also working on securing a research and development rebate for fiscal year 24, 25, and 26 that could, if approved, provide incremental cash inflows. Moving to slide 13, we have a very busy year ahead of us as we progress towards initial gas sales in mid-2026. As discussed earlier, we have commenced the 60-stage stimulation program of the SS6H well, which is expected to be completed by the end of the year. The well is expected to commence IP30 flow testing during the first quarter of 2026, subject to the duration of soaking. Following the completion of the wet season, we plan to stimulate the remaining three wells to achieve initial gas sales of 40 terajoules per day for mid-2026. We expect to finalize the farm out of the Phase II development area in Q1 2026 and drill several carried wells during the remainder of the calendar year. These wells will be a step towards delineating a large gas resource required to underpin a new pipeline to the East Coast market. We also expect to complete the Falcon transaction during the first quarter of 2026, which requires a shareholder vote from Tamborin and Falcon shareholders. I want to thank all of our shareholders for the continued support and look forward to providing an update on our activities at our next earnings call in February of 2026. With that, I'd like to hand over to the operator for questions.

Thank you. And at this time, we'll conduct our 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 that your line is in a question queue. You may press the star key followed by the number 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. And your first question comes from Scott Hanold with RBC Capital Markets. Please state your question.

Yeah, thanks. Thanks, Dick, for all that detail. You know, my first question, it might be for Eric, and look, you all shored up your funding pretty well over the last, you know, few months, and if I'm just focused on, you can focus on just the pilot project right now, can you talk status quo, like how the capital spend looks over the next few quarters into first production, what you expect kind of that quarterly progression to look like, and remind me with