Company Overview - The company is an early-stage development firm with no material revenue expected until 2026 at the earliest[222]. - The company has drilled and completed only four wells as an operator, with only one well identified as productive based on initial flow rates[222]. - The company has no proved reserves and has not sold any natural gas produced to date[228]. - The company is dependent on distributions from TR Ltd. to cover taxes and corporate expenses, with no independent means of generating revenues[364]. Financial Projections and Risks - The company reported an accumulated deficit of $108.5 million as of June 30, 2023, and $130.4 million as of June 30, 2024, raising substantial doubt about its ability to continue as a going concern[280]. - The company does not expect to generate positive cash flow until at least 2026, and therefore does not anticipate paying dividends on its CDIs or common stock in the foreseeable future[379]. - The company has incurred significant operating losses and negative cash flows, with expectations of continued losses as it advances its development program[280]. - The company faces significant operational and financial risks in drilling, with costs often exceeding estimates[230]. - The company’s ability to raise capital may be limited by ASX rules regarding new share issuances[227]. - Limitations on new share issuances under ASX rules may restrict the ability to raise additional capital, adversely affecting business development[405]. Operational Plans and Challenges - The company plans to drill six additional wells through 2025, estimating gross expenses of approximately $26 million for each well[224]. - The company aims for a gross production goal of 2.0 Bcf/d, but there are uncertainties regarding achieving this target[229]. - The company intends to import and implement U.S. practices and technology for natural gas development in the Northern Territory, but faces challenges in attracting and training a qualified workforce[232]. - The company’s business plan includes delivering natural gas to the Northern Territory and select markets in South and East Asia, contingent on additional pipeline capacity[227]. - The company is dependent on the success of its drilling program and infrastructure development in the Beetaloo, which is still in the early stages of development[281]. Market and Pricing Risks - The company’s business model relies on higher natural gas prices from Asian and domestic Australian markets compared to U.S. prices, making it vulnerable to price fluctuations[248]. - Natural gas prices are volatile and a sustained decline could adversely affect the company's financial condition and ability to raise capital[245]. - A significant portion of natural gas production may be interrupted due to various factors, including weather conditions and labor issues, potentially adversely affecting cash flow[237]. Regulatory and Compliance Risks - The company faces legal and regulatory risks that could result in substantial liabilities and impact operational performance[304]. - Changes in government policy regarding natural gas development could significantly affect operations and profitability[310]. - Compliance with environmental, social, and governance (ESG) expectations is critical, as failures could damage the company's reputation and lead to financial penalties[306]. - The company is required to produce natural gas in the Beetaloo on a Scope 1 net zero basis upon commencement of commercial production, with a threshold of 100,000 t-CO2-e emissions per financial year[328]. - Compliance with various environmental and occupational health and safety laws may lead to increased costs and operational delays, impacting financial performance[321]. Internal Controls and Governance - The company has identified a material weakness in its internal control over financial reporting, which may lead to inaccurate financial results or misstatements[381]. - The company identified material weaknesses in internal controls over financial reporting for fiscal years 2023 and 2024, including insufficient evidence of internal control performance and inadequate segregation of duties[383]. - A full review of processes and internal controls is being conducted with external consultants, and new controls and processes are being implemented[384]. - The company plans to hire additional accounting and finance personnel to ensure compliance with reporting requirements and maintain segregation of duties[384]. External Economic Factors - High market volatility and instability in the banking sector could adversely affect economic activity and the company's business operations[287]. - Ongoing geopolitical conflicts, including those in Ukraine and the Middle East, may lead to increased uncertainty in natural gas markets and higher prices, potentially impacting demand[288]. - A financial crisis or deteriorating economic climate could materially decrease worldwide demand for hydrocarbon-based products, affecting sales prices and operational capabilities[291]. - Risks related to pandemics and public health events could disrupt business operations and adversely affect liquidity and financial condition[292]. Environmental and Community Risks - Community opposition regarding the development of the Beetaloo could result in significant costs and delays, affecting the ability to obtain necessary government approvals[322]. - The company faces potential legal disputes and operational disruptions due to native title and heritage risks associated with natural gas exploration and development[324]. - Increased attention to ESG matters may lead to higher compliance costs and reduced demand for the company's products, adversely impacting financial performance[330]. Future Outlook - The company anticipates commencing construction of the NTLNG project as early as 2027, with a total purchase commitment of 4.4 Mtpa from bp and Shell, although these agreements are not binding[284]. - The company anticipates that achieving its vision of becoming an operational net zero emissions producer is uncertain and may depend on various external factors[329].

Gas Sales Agreements and Partnerships - Tamboran Resources Corporation signed a 15.5-year Binding Gas Sales Agreement to deliver 40 MMcf/d to the Northern Territory Government via the existing Amadeus Gas Pipeline[11] - The company has signed letters of intent with six East Coast gas buyers for up to 875 MMcf/d, which is over 50% of the current East Coast gas demand[4] - The company entered into strategic partnerships to import US technology and build additional pipelines into the Beetaloo Basin, including a two-year rig contract with Helmerich & Payne[8] Production Goals and Drilling Programs - Tamboran aims to grow Beetaloo Basin gas production to 2 Bcf/d (gross) by 2030 to supply the Northern Territory, East Coast, and Asia Pacific markets[7] - The average gross well cost for the 2024 drilling program is targeted at approximately US$28 million for two wells, with IP30 flow rates expected in Q1 2025[12] - The proposed Shenandoah South Pilot Project targets first gas from a ~40 MMcf/d (gross) pilot project in 1H 2026, with drilling of two horizontal wells commencing in 2024[10] - Upcoming milestones include completing drilling and stimulation activities by 4Q 2024 and securing final stakeholder approvals by YE 2024[22] Reservoir and Well Performance - The Shenandoah South 1H well logged approximately 480 ft of high-quality gas interval at around 10,000-foot depth, indicating favorable reservoir properties[9] - Shenandoah South 1H IP90 performance shows favorable comparison to average Marcellus Shale well performance, with an average flow rate of 24 MMCF/D per 10,000[17] - The Liberty Energy frac fleet, with 80,000 HP, has been imported to optimize stimulation of the Mid Velkerri B Shale, enhancing cost efficiency and well performance[15] Market Analysis and Future Projections - The East Coast gas market is projected to face potential shortfalls exceeding 1 Bcf/d by 2030, with prices for local contracts in 2024 estimated at A$12.60 per GJ (~US$8.45 per mcf)[6] - Phase 2 of Tamboran's strategy includes oversized new pipelines to provide 875 MMcf/d to the East Coast Gas Market, addressing projected shortfalls[20] - The Marcellus Shale in NE Pennsylvania produces approximately 14 Bcf/d from around 1 million acres, indicating significant production potential in similar regions[19] Project Development and Environmental Approvals - The proposed NTLNG project at Darwin has secured a 420-acre site and is targeting completion of pre-FEED studies by 1H 2025, with government support of approximately US$1.0 billion[21] - The environmental approval process for the NTLNG project is currently underway, expected to be completed by YE 2025[21] - Tamboran's proposed NTLNG project targets an export capacity of approximately 6.6 MTPA[20] - Tamboran holds a net working interest of approximately 387,600 acres in the deep Mid-Velkerri gas play, targeting future development potential[18] - The company is focusing on the development of the Mid Velkerri 'Lower B' shale target, which presents future upside potential[19]