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.

Yeah, thanks. Good morning, good afternoon. You know, that deal that impacts had with Daly Water certainly was a vote of confidence and validation of what's going on in the beetle. It feels like, you know, there's a lot of momentum picking up, especially as you cited, you know, the ongoing issues in the Middle East. And can you just give a general, you know, idea of like, how has that framed your thoughts about the short, medium, and long-term kind of progression of of the B2L and, and, you know, where, you know, as you start thinking about like phase one, phase two, you know, you know, just give us a sense of what that means for pricing on, on some of those potential contracts and, and, you know, outlets, whether it's backfill LNG or, or anything else.

Yeah, no, thanks Scott. Yeah. Just kind of reiterating a little bit from the remarks there. When you look at what's going on kind of overseas conflict to the middle East, it has certainly amplified the focus on energy security. And we hear that loud and clear from the people that we talk to. And the way I describe it is like, look, you know, it would be wonderful if that conflict was resolved today. And even if it is, that new awareness of the importance of energy security isn't going away. So it certainly focuses, puts a sharp focus on an asset like the BDLU that's a large gas resource that, you know, in a jurisdiction like Australia, in the neighborhood of the Asia Pacific, has a very low in situ CO2. There's just a lot of things that make it really important. So we hear that rhetoric loud and clear. When I think about kind of short, medium, long term, I'll kind of give you a sense of how I see the play evolving. I can't comment on pricing. You know, there are active discussions on there, so I can't get into that. But Look, in the near term, we're focused on that delivery to the Northern Territory. That's the $40 million a day. You know, that's a CPI escalated price, but it is confidential in the term, so we can't disclose that either, unfortunately. But that will go. We'll kick that off in the third quarter of this year. There are opportunities to expand our throughput through there. I would call that the medium term. that pipeline is capable of 100 million a day. We can twin the compressor there and move an additional 50 million a day through a second compressor, so a total of 100. That incremental gas could go some to Darwin, you know, some could go north to, you know, Inpex following the Daily Waters and Inpex deal. Some could go to other manufacturing and mining operations in the area. An important thing to understand about all that is that our gas and the Daily Waters gas is jointly marketed. by agreement. So we're all aligned on moving that. Longer term, now we're talking about large format pipelines, you know, north and east. Those pipelines are commercial. Those pipelines, you know, I think we're all confident those will happen. The timing is yet to be defined on it, but they are commercial, and an asset of this scale needs multiple outlets. Hope that answers your question, and

Yeah, no, I appreciate all that context. Obviously, there's a lot going on, so I appreciate any kind of color there. My follow-up question was going to be on the cost savings. I want to delve in a little bit more. You talked about, obviously, testing some of the local sand. You've been here now a few months. Can you give a sense of what other opportunities do you see to lower costs? And as you look into next year, what is the hope to get well costs down to?

Yeah, I would. So first, I'll thank you for bringing up the local sand. We'll have 10 stages put in on the upcoming completion program on local sand, and we'll have tracers and all that so we can see the relative contribution just to kind of confirm that works. We like what we're seeing in the lab data. So we're very optimistic there. Assuming that works, that's a U.S. $4 million kind of savings on each completion. You know, that's a 10,000-foot 60-stage well. So a good movement there. When we think about other stuff on the drilling side, you're thinking about moving into things like oil-based mud, synthetic oil-based mud. We're using water-based mud right now. But as we get waste disposal facilities in the basin that can handle oil-based cuttings, that will help. That will increase our ROP. That will shorten our drill times. There are certainly other optimizations there to make, Scott. But really, until we're kind of up at pace with a full-time program, we're not going to see everything that you would see kind of in a more mature U.S. shale basin. It's just not the stage we're at right now.

Yeah, do you have a sense of where you think costs could be, you know, by next year?

No, next year is going to be a little bit hard to say because we're drilling a limited number of wells. We have the two wells. We'll drill a total of four wells next year. So that's going to include kind of some of the same, bringing the rig on, taking the rig back, a little bit of a stop and start. So you're not going to be at full efficiency there. But, you know, going forward, as we get more wells and a more sustainable program, that's when you're really going to start seeing the lower cost.

Okay. Understood. Thank you.

Yeah. Our next question is from Charles Mead with Johnson Race. Please proceed.

Yes, Todd, good day to you and the rest of your team there. I wanted to go back to your prepared remarks. I appreciate those great color on the close of the Falcon. I want to ask a question about that and the timing of the farmout. It makes sense to me that your farmout, you'd wait to close the Falcon deal before you finalized the farm out, but it looks like you're sliding, you know, now you're expecting a Falcon close in the month of May, if I heard you correctly, but it looks like you're, you're kind of sliding the farm out more to, to back half of 26. And, you know, is that, is that the right read on the sequence here? And, and, you know, what, what implications does that have, you know, for, you know, for, for the competition in that deal or, or, or the, you know, what, People are going to be worried. You slide it. It seems like it's not happening. I should put a risk of this not happening, but perhaps it's because there's more people who are in the data room who weren't involved before.

Yeah, and that last part is the really current read, Charles. Yeah, look, the Falcon deal, exciting news, so it's good to have that kind of near the end. We've got Rowan on the line. He can answer any detailed questions that you have there, but That's been a lot of work by the team and a very complex deal. And to kind of be here where we see light at the end of the tunnel was exciting. That was certainly a question in the farm-out process, you know, by other potential partners. You know, they want to know what the status of that is and certainly wanted confidence that that was going to close. So it answers a question, you know, but there's more to it than that. There's more complexity to it. So a lot of things have happened since we've announced that farm-out process. We talked about all this stuff in the Middle East, and we don't have to rehash that. The impact David Waters' deal has been important and our tag into it. That has re-rated the basin. It has brought in a very credible third party that's not only sophisticated but very well-informed. So that adds a lot of enthusiasm and a lot of confidence to the people that are interested in this type of asset. So we are seeing renewed conversations and additional conversations. And following the capital raise, we have a lot of financial flexibility and the ability to be patient on this. And my focus is less about getting a quick timing. I understand how it can be kind of red in the market. But my focus is not on timing. My focus is on getting the right partner at the right value for us. and giving some of these other parties time to get up to speed and understand the asset gives us the best position to do that. So I understand it can be frustrating that the answer isn't quite there yet, but we're being very thoughtful and we're really confident about the position we're in right now.

So that is a great insight on your thinking and your process. Thank you for that. And then as a follow-up, this is about the two wells you're going to drill with Santos. It looks like these two wells are going to be in another deep part of the basin, but it's a different operator. I'm curious if you can talk about perhaps how Santos is approaching the drilling and completion of these wells differently. They have a different rig. They have an Anson rig. I think on your slide 8, it says they're going to flow test the wells for 12 months. And maybe that's because they're going to tie into those pipelines as part of the flow test. But can you just talk about how they're approaching differently and if there's any cross-pollination between your team and their team and, you know, anything that might come of that?

Yeah, so I'll step back a little bit. And the 161 acreage is really good acreage, right? There's central four benches there. It's something we're very excited about. Santos is going to drill the two 10,000-foot wells. They've got, you know, kind of a full modern completion. A little bit different than the last wells. It's going to have larger casing, which will give them better, kind of a better completion job, a better crack job on it. So we're optimistic about the results of the wells. The duration of the flow test, frankly, hasn't been finalized yet. You know, I could tell you how kind of we would do it if we're operating it. We're not operating it. Santos is. So that's going to be a discussion between the two companies. But that hasn't been set yet. So I would kind of be talking out of school if I told you kind of where I think that was going to land exactly.

Got it. Thank you.

Yep. Our next question is from Paul Diamond with Citi. Please proceed.

Thank you. Good morning, all. Thanks for taking the call. Just a quick one for me. So we seem to be in a bit of a catalyst-heavy environment. If we kind of look through this a bit and talk about, post all of this, like once, you know, pilot phase is up and running, what does the next operational stage look like? Is that, you know, operation cadence, backfilling phase two?

Yep. Well, I'm sorry. I'm having a hard time hearing you. Could you move a little bit closer to the phone maybe?

Oh, sure.

Hang on one sec. Better? Yeah, much better. Thank you. Okay. Sorry about that.

No, I was asking about we're in a catalyst phase. Can you also hear me? Yes, gotcha. Okay, sorry. No, I mean, we're in a catalyst-heavy environment, but can you kind of look through this a bit? Is the, this is a laid-out strategy as we kind of the best path we know. Is it on the phase two, ramp that up with the work over, or ramp that up with the farming product, farming, ramp up phase two, be a day, or do you see, I mean, is there any, like, long-term supply deals, you know, adjacent to that, or further M&A, or I guess how do you see the structure beyond your kind of full ramp of phase one?

Okay, sorry. I think I caught most of that, Paul, but if I don't answer your question exactly, like steer me on it, I think you're asking about kind of mid- and longer-term strategy for the asset. Is that right?

Yes, exactly.

Yeah, so, yeah, I mean, near-term, I think we've talked through the near-term strategy pretty well. So, you know, most people understand that. The key piece of data in the near-term strategy-wise that we're all looking for is the long-term production data, right? So once we get that, it clarifies a lot of things for a lot of people. Longer-term, de-risking the Orion asset and defining resource is important. Same in the eastern depot center along the Santos and our 136 acreage. Defining resource is going to be really important for attracting those large diameter pipelines that we need for the basin. So that's kind of the intermediate phase as those come in. Then you're in a mode where once you get clarity on in-service dates for both of those pipelines, that's ramping up kind of the larger scale drilling program to build volumes into those pipelines. And I think that's the moment that we're all getting – that's where we get all excited about it, right, because that's when you have full-time drilling programs, probably multiple rigs, and you're building into something pretty aggressively. So our focus in the near term is on the production test and the production data and the deliveries to Darwin. Next is de-risking resource to FID pipelines. And then third, it's developing the resource into those pipelines. Did I get your question right? Did I hear it right?

Yeah, you did. Sorry, the connection must be on my end. But, yeah, that answers it for me. Appreciate your time. I'll leave it there. All right. Thanks, Paul.

Our final question is from Anish Kapida with Hammond. Please proceed.

Hi, Todd. Just a first question on anti-hating. First question on NT-LNG. I was just wondering if you had any updates on that and whether, given the current environment and the increased appetite for local projects from Asia, given the Middle East outage, if there's any kind of push to accelerate the NT-LNG project at the moment?

Yeah, thanks for the question. As you know, we've done the pre-feed studies there, and we've defined the opportunity there in mid-alarm for NTLNG. That comes up in many of the conversations that we have, and it kind of just depends on the partner and the partner's capability, their interest level and something like that. It's certainly a credible option that's out there and certainly becomes part of those discussions. In the near term, though, we don't intend to allocate capital towards that. to progress kind of, for instance, a full feed or to start material work until we understand exactly who that joint venture partner is and what their needs are. So that's kind of the staging on that is first establish who that joint venture partner is and then two, let's look together and what role does NTLNG play in our joint strategy.

Okay, great. And then just one second one. I suppose there's several players in the basin now. There's several partnerships in the basin. I was just wondering, really, how much of a competition is there to get gas to market over the coming years? And kind of within that context, how are you thinking about your 100% owned acreage?

Yeah, I'll kind of take those separately. So... Let's talk about it near term and long term on the marketing side. So near term, if you look at the western acreage where we're partnering with Daily Waters, that's where our pilot activity is. That's where the STCF is. That's where we'll be flowing gas third quarter. The infrastructure there is limited to about $100 million a day. And if we twin that compressor, we can get to the $100 million a day. But at that point, you're kind of plateaued until you get a larger format pipeline there. There are multiple outlets for that gas over there. The first gas will go to domestic use to Darwin. We think there's an opportunity to push those rates up a little bit. Then we have other domestic markets like manufacturing and mining in the area that we can move gas to. And then the last is because of the impacts deal with daily waters, there's likely some opportunities to move gas to ICDES from there. But in total, we're going to be limited to 100 million a day And as I mentioned earlier, this is an important point. Our agreements with Daily Waters all require that we joint market our gas. So all of it moves together. We're fully aligned on making all that work. Over on the eastern side, on the non-operated piece with Santos and 161 and then our acreage around it with Walk 136 and the Checker 10, there's less infrastructure there. So there are less options to move that gas currently. It's going to take some work. kind of following up on the prior question about what is going to be the production test plan for 161. There's just less infrastructure there right now. So that's a little bit of a longer-term problem. For both sides of the base and both depot centers, we do need the longer-term large format pipelines. And a little bit different than pipelines in the U.S., these pipelines are built with the idea of common access pipelines. So there won't be one party that just monopolizes a pipeline. That's not really how it's going to work here. We'll all work together, and the goal of the companies is to be efficient in capital so that we can get a pipeline each direction of the right size to utilize the capital and spread that cost out over the large volume. So feel good about both situations. It's near-term is good, especially where we're producing, and longer-term, just the way The pipeline regulations work here in Australia. We're in a good spot. Oh, sorry. You also asked about our example of the other acreage. I would say our near-term focus is first on the pilot area where we're drilling development wells, wells that will go to production. Also, I'll put 161 and Orion together. Those are areas where we're de-risking resource. So those kind of three areas are our primary focus. I could also add the BCDA area, the daily waters operated stuff to the south of the pilot will be participating in wells there as they move forward with their impacts work program. Beyond that, the other positions out there, certainly prospective, they're a little bit longer term. Our goal is to use kind of those core areas that I mentioned to FID the pipelines.

Thanks. That's very clear. Yeah, no, thanks.

There are no further questions at this time. I would like to turn the floor back over to Todd for closing remarks.

First, I appreciate the questions and I appreciate the engagement. I just want to send some comments out to the team. The team has done amazing work this quarter. It's been a busy quarter for us. Lots of transactions there and now we're pivoting to the operations and While I think the investment community is anxiously awaiting all those operations, I can tell you our operations team has not taken a break. They've been working with us the entire time. So thanks to the team at Tamborin, and thanks for the support of our investor community through the capital raising on the call.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.