Tamboran Resources Corporation

Greetings and welcome to the Tamborin Resources second quarter fiscal year 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow a formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to our host, Todd Abbott, Chief Executive Officer for Tamborin Resources. Thank you. You may begin.

Hello, everyone, and welcome to Tamborin Resources Financial Year 2026 Second Quarter Earnings Presentation. My name is Todd Abbott, and I'm the Chief Executive Officer of Tamborin Resources, and I'm joined here today by Chief Financial Officer Eric Dyer and BP Investor Relations and Corporate Development Chris Morby. In January 26, following an external process, the board appointed me as the new CEO, and I'm truly excited for this opportunity to lead TAM Board and the Beetlejuice Basin into the next phase. We have a great management team with deep experience and a board of directors with a track record of creating large value over their careers. I have long relationships and deep trust with the board, and I'm confident in our path. I look forward to working closely with all stakeholders, including native title holders, Northern Territory governments, pastoralists, and shareholders to deliver what I believe has the potential to be a world-class, unconventional gas project. But before I start the review of the second quarter earnings, I'd like to acknowledge the great work done by Dick Stoneburner as interim CEO. Dick guided the company through some critical milestones, including the Falcon merger and the largest drilling campaign in the Beetley Basin. He is one of the best in the business, and we couldn't have a better chairman. So thank you, Dick. And with that, let's get started. So moving to slide two, you can see our disclaimer, which relates to forward-looking statements within the presentation. I encourage you to review that at your leisure. And then on to slide three. The second quarter of fiscal 26 has been another period of progress for Tamborin, as we delivered on key milestones and approached first gas sales from the Beteloo Basin during the third quarter of this calendar year. Following the completion of the drilling of the two-well program in October 25 using the H&P Flex Rig 3, the team successfully delivered the largest stimulation program to date in the Beetlee Basin, achieving 58 stages across a 10,009-foot horizontal section within the Mid-Valkyrie B Shale. The stimulation activities were completed using the Liberty Energy Fract Fleet, which Tamborin mobilized to the basin in 2024. We conducted an initial flowback, and now the well is currently shut in and undertaking a 60-day soaking period. We had originally planned a 30-day soak period, but after further consideration, we'll undertake a soak duration in line with the SS2H ST1 well. Construction activities on the Sturt Plateau Compression Facility continued during the quarter, with the project approximately 80% complete at the end of January. And during the quarter, key contracts were awarded for the electrical work, The project remains on P50 budget and on track for first gas in third quarter 26. The Australian Pipeline, or APA Group, continued construction of the Sturt Plateau Pipeline. The line is now in the ground with strength and hydro testing activities successfully conducted in January, and the pipeline now ready to take gas. I want to thank APA for their tremendous effort in delivering the SPP on schedule and below budget and look forward to continuing to build the relationships. And we're now gearing up to commence our 26 B&B Basin operations, which will be our most active year to date. The program includes stimulation of the remaining three wells required to deliver the 40 million a day plateau rate ahead of the commencement of initial gas sales later this year. And we're also planning to drill two wells with our partner Daily Waters Energy on the SS1 well pad to the south of the SPCF. Tamborim will be acting as operator on behalf of DWE, and the wells are planned to be stimulated in second half of 26, subject to performance of the initial wells. We'll also be participating in two wells in the Beedlew East Acreage EP161 via our 25% non-operating partnership with Australian E&P Santos. The two wells, Jabira South 1H and Newcastle South 1H, are both 10,000-foot commitment wells, and are positioned to delineate additional gas resources in the Eastern Depot Center. Santos has contracted the Ensign Rig 971 to undertake these activities. Additionally, we are continuing to progress the farm-out process, but we will not go into much detail on the call, just given the commercial sensitivities and the phase that we're at. Finally, we ended 2025 with a cash balance of $91 million U.S., and a drawn debt of 16 million U.S. associated with the construction of the SPCF. And since the end of the year, Tamborim received 32 million U.S. following completion of the pipe in January and expects to receive another U.S. 15 million related to the acreage sale to DWE. Moving to slide four, I want to touch on the investment highlights, which is a key reason I'm so excited to take on the CEO opportunity. First, scale. Tamborin sits on 2.9 million net prospective acres across one of the largest unconventional shale projects in the world, including large positions over both the Beasley East and West depot centers. The acreage position includes up to four high-quality benches across the basin with over 16,000 locations. Second, well results are showing that initial flow rates indicate a comparison to the Marcellus shale in the USDA. And what we are starting to see is the Valkyrie B is showing its own distinct character, indicating shallower declines as the well continues to clean up over the 90-day flow testing. The Beedlewy Basin is also connected to three highly attractive gas markets, the NT local gas market, which we will be producing into later this year, the Australian East Coast Gas Network, which is trading at multiples to the long-term Henry Hubb price, and the Asia LNG market, which is the largest growing demand center for gas in the world. Tamborne is nearing production, which is going to be a huge milestone, not only for the company, but for the stakeholders in the Northern Territory. Our first production from the Beetley Basin will provide local supply of energy to the NT, which is powered predominantly by gas, and it will also deliver royalties to the native title holders and to the Northern Territory government. We are nearing completion of the acquisition of subsidiaries of Falcon Oil and Gas, which will consolidate Tim Bourne's interest across the entire Beteloo Basin and further de-risk the execution of our development plan. Moving to slide five, 26 is just the first step in Tim Bourne delivering significant production growth into the three markets I highlighted earlier. This year, we will be focused on stimulating the three remaining wells and completing the construction of the SPCF to deliver first gas sales to the Northern Territory governments. We will be drilling two backfill wells on the DWE operated southern pilot area during the first half of 2026. The reason for drilling these wells ahead of production is a risk mitigation strategy and provides valuable gas behind the pipe that will be used to increase volumes over the 40 million a day. And we'll also look to progress our phase one expansion project via the commencement of concept select studies. The project will evaluate the potential for an expansion of the SPCF to approximately 100 million a day and deliver additional volumes to the Northern Territory government gas market and Mount Isa. We will also be participating in two commitment wells with Santos at EP161, where Tamborne is a 25% non-operating owner. The two wells are planned to delineate additional resources in the Beetle East Depot Center that Santos are evaluating delivering to the East Coast gas market and into the Gladstone LNG project in Queensland. Finally, we're progressing the farm out on our Phase II development area, targeting carried wells during the 26-27 drilling campaigns to delineate resource and to underpin a new pipeline. As I said, this will be a year to lay the foundations for growth, including material step-up and drilling activity that aims to deliver reinvestment and accelerating a range of production opportunities. Moving to slide six, during the quarter, Tamborin completed the stimulation of the SS6H with 58 stages across 10,009 feet within the mid-Valkyrie B-shell. During flowback, an impediment was identified at approximately 8,600 feet along the horizontal section. We're evaluating if the impediment has the potential to block any of the flow from the last 14% of the section. We are all interested in the local in-basin sand opportunity, which is a material initiative to reduce well-cost long-term waste. We did not get to effectively deploy the local sand during the 25 campaign due to being unable to wash and dry the quantities required. We do plan to test stages during the 26 campaign. Moving to slide 7, as I highlighted earlier, DWE are planning to drill two wells on their operated southern pilot area acreage during the first half of 26. Tamborim will act as the agent operator during the period, undertaking the activities on DWE's behalf. The two wells are planned to be tied back to the SPCF on the SS2 well pad and backfilled into the NT government gas contract. Both Tamborne and DWE expect to be equal equity partners on the south pilot area at 50% following the completion of the Falcon transaction and acreage swap with DWE. Now moving to slide eight, construction activity on the SPCF continues along our P50 schedule and within the forecasted budget. At the end of January, the project was 78% complete and is on track for commissioning during the third quarter of 20 cents. Just a reminder that the remaining capital spend is being funded from a U.S. $118 million facility with a consortium of lenders. Camborne and DWE also commenced the divestment process of the SPCF during the quarter with binding agreements for the sale on track for a first half. Camborne and DWE will toll volumes through the SPCF under long-term gas processing agreements And on the sale of the SPCF, we expect to release our full $15 million in equity that is currently held in the facility. Moving to slide 9, APA have done an incredible job in progressing the SPP. With the construction, strength testing, and hydro testing now complete, the pipeline will shortly be tied into the AGP and be ready to receive gas from the SPCF once complete. Pamborn and APA have commenced discussions to expand the pipeline to support the SPCF expansion project. Moving on to slide 10, Ken Boren's JV partner and EP161 Santos are planning to drill two permit commitment wells to Barrett South 1H and Newcastle South 1H during the third quarter. The wells will target the mid-Valkyrie B-Shale and follow-up wells to the Tannin-Barini wells drilled and protested in 21 and 22 and delineate additional resources in the Peterloo East Depot Center. On to slide 11. You can see that following the completion of the public offer, share purchase plan, and pipe, we are well positioned to fund our pilot project initial gas sales in third quarter 26. At the end of the quarter, we had U.S. $91 million in cash on the balance sheet with near-term cash for inflows of U.S. $47 million. The company received U.S. $32 million relating to the pipe transaction following the shareholder approval in January 26. We also expect to receive U.S. $15 million from the acreage sale to begin the year once we meet certain conditions precedent on the checkerboarding of the acreage. At the end of 2025, we had drawn debt of U.S. $16.3 million relating to the facility to finance the construction of the SPCA. U.S. $42 million net to Tamborin remains undrawn. As mentioned earlier, we are currently tracking towards the P50 forecast, so we have ample capacity within the current facility. We also continue to progress research and development rebates for fiscal 24, 25, and 26 that could, if approved, provide incremental cash flows. Moving on to slide 12, you can see we have a very busy year ahead of us as we progress towards initial gas sales in mid-26. I've touched on many of these catalysts already, so I will not delve into these again, but I'm truly excited for the future of Tim Horn in the Pheudeloo Basin. I want to thank all of our stakeholders, from the native title holders, the pastoralists, Territorians, Northern Territory Government, and our shareholders for your support. And I look forward to meeting many of you over the coming months. And with that, I'll hand it over to the operator for questions.

Thank you. And at this time, we will 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 the question queue. You may press star 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. Once again, to ask a question, press star 1. We'll pause for a moment while we pull for questions. And your first question comes from Scott Hanold with RBC Capital Markets. Please state your question.