Financial Data and Key Metrics Changes - The company ended the quarter with US $45.2 million in cash and receivables of US $26 million, including US $11 million from the second tranche of a PIPE transaction and US $15 million from an acreage sale [5][11] - Cash flow primarily funded the SS2H ST1 stimulation and flow testing, with expectations to receive an additional US $15 million by year-end [11] Business Line Data and Key Metrics Changes - Record flow rates were achieved from the SS2H ST1 well, with a 2% increase in rates over the last 30 days of testing without downhole intervention [2][6] - The company has commenced a farmout process for approximately 400,000 acres in the Beetaloo Basin, attracting strong interest from various qualified counterparties [4] Market Data and Key Metrics Changes - The Beetaloo Basin is showing distinct characteristics compared to the Marcellus Shale, with higher gas in place and total organic carbon (TOC) [3][7] - The company is focused on securing approvals for longer-term production and has received consent from native title holders to sell gas under new legislation [4] Company Strategy and Development Direction - The company aims to commence gas sales from the Beetaloo Basin by mid-2026, with plans to ramp up volumes for potential Southeast market distribution [12][30] - The strategy includes pursuing both domestic gas sales and LNG development, with a phased approach to infrastructure development [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Beetaloo Basin's potential to transform energy security for the Northern Territory and Australia's East Coast [12] - The company is actively seeking a new CEO and expects to announce the position by the end of the calendar year [5] Other Important Information - The company has implemented anti-vibrating technology to address tool failures in drilling operations, aiming to reduce non-productive time [8] - Infrastructure projects are underway to transport additional volumes to the local pipeline network, with completion expected by mid-2026 [10] Q&A Session Summary Question: Can you provide details on drill times and tool failures? - Management noted typical failures in hostile environments, with the best segments of recent wells achieving around 19 days, indicating potential for improvement [15][16] Question: What is the plan for the upcoming well? - The upcoming well will undergo stimulation and flow testing, with plans to shut it in for a pilot project after testing [17][19] Question: What does a successful farmout outcome look like? - Management indicated it is premature to discuss specifics but noted strong interest from various companies [27] Question: Are both domestic gas sales and LNG development still priorities? - Management confirmed both markets are still of interest, with different timelines for each [30] Question: When can we expect to conclude the farmout process? - Management suggested a reasonable expectation for an announcement around Q1 2026 [38] Question: What explains the unusual production behavior from the SS2H well? - Management attributed it to unique geological characteristics and potential reservoir engineering factors [40][41] Question: What factors will influence the timing of the next drilling program? - The next drilling campaign will largely depend on the farmout process and partner decisions [46][47] Question: Is there a plan for local sand solutions in Phase Two? - Management confirmed ongoing efforts to utilize local sand, pending technical and procedural evaluations [71]
Tamboran Resources Corporation(TBN) - 2025 Q4 - Earnings Call Transcript