Tamboran Resources Corporation

Greetings. Welcome to Tamborin Resources Third Quarter Financial Year 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Todd Abbott, Chief Executive Officer. Thank you. You may begin.

Hello, everyone, and welcome to Tamborne Resources Financial Year 2026 Third Quarter Earnings Presentation. My name is Todd Abbott, and I'm the Chief Executive Officer of Tamborne Resources. I'm joined here today by Chief Financial Officer Eric Dyer and Vice President, Investor Relations and Corporate Development, Chris Morby. I'm going to take a different approach to earnings call from now on, and rather than go through each slide individually, I'm going to speak to key highlights, operational updates, upcoming catalysts, and then move straight to the Q&A and the remainder of the presentation is going to be here for your information. Moving to slide two, you can see our disclaimer, which relates to forward-looking statements within the presentation, and I encourage you to review that at your convenience. Slide three, the March 2026 quarter was eventful for Tamborne, and we saw several major steps forward as we continued to execute our B-Blue Basin strategy and progressed towards first production from the pilot area in the third quarter of this calendar year. We announced a significant transaction with our Beteloo Basin partners, Daily Waters Energy, to farm out approximately 10,000 acres across the pilot area and Beteloo Central Development area for a stage carry of up to 28.5 million U.S. This transaction was conducted on very similar economic terms to the farming agreement between Daily Waters Energy and INPEX. And the INPEX and Daily Waters transaction has placed a significant data point for high-quality core Beteloo Basin acreage, which mirrors our farm out acreage across the lease line in the Orion block. And it also represents a significant step up from where Tamborin is currently trading. On completion of the transaction with Daily Waters Energy, we will hold 44.375% interest in the pilot area and 10% interest in the Daily Waters Energy acreage. We continue to progress our joint venture on the Orion block north of the pilot area, and a lot has changed since our last call. The NPEX transaction has re-rated the basin, And our follow-on deal with Daily Waters Energy has provided a carry to our near-term capital program. Those are two of the most important advantages of any farm out. And I want to be clear, we continue to believe a joint venture with a strategic partner is important, and these discussions are continuing. The upward movement in asset valuation markers, progress in de-risking the B2B, first gas sales coming closer, strong interest in the Australian natural gas assets, and a number of additional tailwinds put us in a strong position. The ongoing events in the Middle East have also amplified the importance of energy security and highlight the value of the BLE as a large, low-in-situ CO2 gas resource in the Asia-Pacific region. That, along with the entry of Intex, a sophisticated and very credible international gas company, have significantly increased attention on the basin. Given that some of these companies are well-advanced in their understanding of the asset and some are just now engaging in their process, it's very difficult to predict the timing. But with our recent capital raise, we had the financial flexibility to focus on the right partnership and the appropriate value while continuing to de-risk the asset. Development activities for the pilot project progressed throughout the quarter despite the challenging weather conditions. Construction on the surf plateau compression facility was 88% complete at the end of April, with strong progress made on the installation of electrical, instrumentation, controls, and pipings. And importantly, we remain within the P50 budget and schedule forecast for the project, with First Gas on track for the third quarter of this calendar year. The APA-owned pipeline connecting the facility to the Northern Territory Gas Network is undergoing final commissioning ahead of tie-in to the SPCA. And full credit goes to the Tambourine Operations Team and contractors for the safe execution of the project. The remaining three wells required to deliver initial gas sales of approximately 40 million cubic feet per day gross to the Northern Territory government under the long-term CPI escalated gas contract are being prepared for simulation in the coming weeks. The program is expected to include a total of 180 stages across 30,000 feet of simulated length. Simulation will be undertaken by the Liberty Energy Fleet with the SS4H and 5H wells to be zipper-frapped. We're also planning on testing multiple stages with local sand from the Beetaloo Basin during the campaign, which, if successful, will be a major driver of our cost reduction strategy. This could reduce stimulation costs by $4 million U.S. on future wells, assuming 60-stage, 10,000-foot horizontal. The operations team is also preparing for the two-well program on the SS1 pad, approximately three miles south of the SPCA. That's planned to commence in mid-2026. The two commitment wells with daily waters will be tied into the SPCF infrastructure during the second half of the calendar year. And we're also participating in two wells with our partner, Santos, in the EP161 acreage in the Beetle East Depot Center, where we hold a 25% non-operating interest. Santos is currently upgrading the Enson 971 rig ahead of drilling activities scheduled to commence in the third quarter of this calendar year. The two wells are each planned to be stimulated with 60 stages across 10,000 feet and flow tested for up to 30 days. We are very excited to participate with Sanford on progressing the development opportunity and look forward to continuing this partnership to unlock value of the BW East Depot Center acreage. Since our last call, we significantly strengthened our balance sheet, raising $198 million being an underwritten public offer and an institutional and retail entitlement offer. This was on top of the U.S. $32 million received in the pipe transaction in January of this year. The funds from the raises solidify the balance sheet and provide us significant financial flexibility. At the end of the quarter, Tamborne had a U.S. $95 million in cash and U.S. $39 million in undrawn debt net to Tamborne for funding of the SPCA. The pro forma cash position, following the recent equity raise, increases our cash liquidity to U.S. $298 million. which includes the $188 million raised net of fees and the U.S. $15 million we expect to receive from daily waters relating to the acreage sale on May 25, which remains subject to certain conditions precedent. And finally, just a quick update on the Falcon transaction. We received approval from both Tamborin and Falcon shareholders to progress the acquisition of Falcon subsidiaries and approval from the Supreme Court of British Columbia with respect to certain amendments of the plan of arrangements. We expect this transaction to conclude imminently as we have now received the remaining regulatory approvals to consummate the deal, including those related to OFAC licensing. Subject to finalizing mechanics for the delivery of the Tamborin shares to eligible Falcon shareholders, the transaction is anticipated to close by the end of the month. And moving to slide four, as you can see, we have a number of significant catalysts to deliver in 2026. The most significant being to deliver your first gas sales from the Beetley Basin in the third quarter of this calendar year. Initial gas sales from the pilot project deliver royalties to the Northern Territory government and native title holders. Tamborin already employs a significant local workforce, and we anticipate this will continue to grow as activity levels increase over the coming years. And importantly, these gas sales enable us to deliver the first long-term production data seen in the basin. That's an important milestone for Tamborin, the Beaverly Basin, and the Northern Territory, reinforcing the basin's potential to deliver long-term economic benefits for all stakeholders. The 2026 Beaverly Basin Program represents a key inflection point, with Timborn planning to participate in the stimulation of five wells and then drilling the four wells across the basin. We look forward to providing further update on our activities at our earnings call in September. And with that, I will hand it over to the operator for questions. Thanks.

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Scott Hanold with RBC Capital Markets. Please proceed.