Tamboran Resources Corporation

Greetings and welcome to the Tim Bourne Resources fourth quarter fiscal year 2026 earnings call. At this time all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star 1 on your telephone keypad. We ask that you please ask one question, one follow-up, then return to the queue. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It's now my pleasure to turn the call over to Todd Abbott, Chief Executive Officer. Todd, please go ahead.

Hello, everyone, and welcome to Tamboran Resources Financial Year 2026 Fourth Quarter Earnings Presentation. My name is Todd Abbott, and I'm the Chief Executive Officer of Tamboran Resources. I'm joined here today by Chief Financial Officer Eric Dyer and VP Investor Relations and Corporate Development, Chris Morbey. I'll start by reviewing delivery against the commitments we made 12 months ago, then cover production and commissioning as we build towards plateau rates and contracted supply. I will also discuss what our latest well results and operating improvements mean for performance and cost as we continue to de-risk our asset. I will then review our funding position and close with the next development milestones before we take your questions. Moving to slide two, you can see our disclaimer, which relates to forward-looking statements within the presentation. I encourage you to review those at your convenience. In slide three, the last few months have been a pivotal period for Tamborne and the Beetaloo Basin, as we have delivered on a key commitment and provided the next step in de-risking the basin. We have delivered first gas sales from the Beetaloo to the Northern Territory gas market. Homes and businesses in Darwin are now being powered by a local onshore resource. These gas sales also bring royalties to the Northern Territory government and native title holders, alongside job opportunities for Territorians. Tamborne already employs a significant local workforce, which we expect to grow as activity increases over the coming years. Moving to slide four, gas has now been flowing into the market for 20 days. Volumes are currently limited by market demand, with the Northern Territory government nominating 25 terajoules per day as the territory comes out of its lower demand season. We expect demand, and therefore nominations, to keep growing through the Northern Territory's peak demand period. We are currently in the commissioning period of the gas sales agreement. Once the agreement moves into the supply period, take or pay provisions will apply to the 40 terajoule per day contract quantity. and we will be getting revenue based on that 40 terajoules per day. Any gas the off-taker does not take will be banked for future potential delivery. This gives us downside protection in the event of lower nominations during the contracted period. Regarding our flowback strategy, we will prioritize two wells to ensure that we're generating long-term production and well performance data to further de-risk the basin. The remaining wells will be managed as needed to recover flowback water and to close any gap to the allowable nominations. In achieving this first gas milestone, our operations team have been working deliberately across multiple work streams. They successfully completed the stimulation campaign on the SS2 pad in the Beteloo Basin. The program utilized the Liberty Energy Stimulation Fleet that was imported into the basin in 2023. During the program, we completed 178 stages across 30,000 lateral feet. It was the largest stimulation campaign conducted in the basin. And the zipper-frack approach allowed us to achieve 20 hours of operations and a Beteloo Basin record 12 stages completed in a day. This gives us and the market early evidence that we can execute completions more efficiently. The next measure of success is sustaining an improved pace across a full campaign Reducing downtime and bringing down completion costs per well. We have also entered into a non-binding memorandum of understanding with Liberty Energy, setting out the intent to extend the hydraulic fracture stimulation and wireline services agreement covering Tamborne's operations in the Beteloo Basin. Liberty intends to begin phasing lower emissions pumping equipment into the Beteloo fleet from 2027. Importantly, The campaign included 10 stages using the locally supplied Beteloo red sand across various locations within the SS2 5H well. The pumping and placement of the local sand was an identified risk going into the program. However, given we experienced no impact to pump pressures or fracture initiation during these stages, we are confident on our ability to place local sand in future campaigns. Tracers across the horizontal length have shown that the stages are producing in line with offset wells, but these are still early days, and the true test will be the longer-term flow rates and recoveries. We plan to further test our beetley red sand during the upcoming stimulation program planned on the SS1 pad. Success of that local sand is a key step in delivering near-term cost reduction for well completions. It is expected that that sand could save 4 million U.S. per well with a 10,000-foot horizontal section compared to the sand imported from overseas. Those long-term flow rates and recoveries from those stages will help us assess how widely we can apply those savings. In conjunction with the upstream activity, the operations team successfully completed construction of the Sturt Plateau Compression Facility on time at approximately 9 million U.S. below the forecasted budget. This allowed us to meet our commitment to the supply of the Northern Territory gas market during the quarter. The commissioning of the facility remains ongoing as we fine-tune control systems and refine equipment settings. During the commissioning period, we will be receiving 75% of the gas price. This is due to the interruptible nature of the supply. Once commissioning and production testing requirements are complete, we will commence delivery into the take-or-pay contract with the Northern Territory government. During the quarter, the operations team also commenced drilling the three-well campaign on the SS-1 pad with the H&P Flex III rig. Drilling of the first two wells has been completed, with the third well currently drilling ahead. We continue to incorporate lessons from previous campaigns. This program includes first wells drilled with our improved drill bit design and anti-vibration tools. This resulted in record speeds through the Morocco mission. Modifications to the rig have resulted in reduced mud temps, allowing increased average ROP in the lateral sections. We continue to work with our contract partners to improve efficiencies and reduce downtime, especially within the lateral section, and we believe these are addressable as we ramp up activity. In the east, drilling of the two-well appraisal program with Santos on EP161 has also commenced with the Jabera South 1H and Newcastle South 1H wells in that depot center. During the quarter, we significantly strengthened our balance sheet. In April, we raised U.S. $186 million net of fees via an underwritten public offer and an institutional and retail entitlement. The funds from the raise solidified the balance sheet and provide us financial flexibility. At the end of the quarter, Camborne had U.S. $225 million in cash and $31 million U.S. in undrawn debt for funding of the SPCF. including the U.S. $15 million that we expect to receive from Daily Waters Energy, the pro forma cash position is U.S. $240 million. Receipt of that $15 million remains subject to certain conditions precedent. Over the next two quarters, we expect that under U.S. GAAP, some revenue and costs related to the pilot project will be capitalized to the balance sheet during commissioning rather than flowing through the income statement. This is to avoid reporting volatility and means that the income statement will not reflect cash movements during the period. We expect to announce first quarterly gas sales and revenue in our 1Q fiscal 27 earnings in November. The next phase of our development plan is to further delineate our gas resources across both depot centers in the Bentley Basin. This will be the focus of our 27 and 28 campaigns. We are working with our joint venture partners, Daily Waters Energy and Inpex in the West and Santos in the East to drill and stimulate at least six step-out wells over the next 18 months. We are progressing discussions with multiple parties to bring in a strategic partner. These strategic discussions and the upcoming appraisal work aim to align on resource delineation and commercialization pathways that will support a large-scale development and underpin new pipeline infrastructure. That infrastructure is expected to connect the Beadley Basin to multiple high-value markets. To close, we have delivered the first gas sales that we committed to 12 months ago and completed the compression facility on time and below the forecasted budget. Our latest drilling and stimulation work is showing where we can improve efficiency, while local sand offers a potential source of completion cost savings. The equity raise has strengthened our balance sheet for the next phase of development. The priority now is to turn those achievements into sustained operating performance. That means completing commissioning and production testing, building towards plateau production and contracted supply, and demonstrating that the gains in well delivery can be repeated. Those are the measures I will use to judge our progress as we advance our development plans and partner discussions. As we close, I want to thank all Timborn employees for their commitment, their performance, and their support for one another as we continue to grow, evolve and deliver for our customers and shareholders. Thank you.

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