Financial Data and Key Metrics Changes - The company ended 2025 with a cash balance of $91 million and a drawn debt of $16 million related to the construction of the Sturt Plateau Compression Facility (SPCF) [7][18] - Since the end of the year, Tamboran received $32 million from a PIPE transaction and expects an additional $15 million from an acreage sale to DWE [8][18] Business Line Data and Key Metrics Changes - The second quarter of fiscal 2026 saw the completion of the largest stimulation program in the Beetaloo Basin, achieving 58 stages across a 10,009-foot horizontal section [4][6] - Construction of the SPCF is approximately 80% complete, with key contracts awarded for electrical work, remaining on budget and on track for first gas in Q3 2026 [5][15] Market Data and Key Metrics Changes - The Beetaloo Basin is connected to three attractive gas markets: the NT local gas market, the Australian East Coast gas network, and the Asia LNG market, which is the largest growing demand center for gas globally [10] Company Strategy and Development Direction - The company aims to deliver significant production growth in 2026, focusing on stimulating three remaining wells and completing the SPCF construction to achieve initial gas sales [11][12] - Plans include drilling two backfill wells to ensure a 40 million a day plateau rate and progressing a Phase One expansion project to evaluate increasing capacity to approximately 100 million a day [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the Beetaloo Basin as a world-class unconventional gas project and emphasized the importance of collaboration with stakeholders [3][10] - The company is optimistic about the future, with plans to drill additional wells and expand operations, while maintaining a focus on drilling high-quality gas wells [19][57] Other Important Information - The company is nearing completion of the acquisition of subsidiaries of Falcon Oil and Gas, which will consolidate Tamboran's interest across the Beetaloo Basin [11] - The local sand opportunity is being evaluated to reduce long-term well costs, with plans to test it during the 2026 campaign [13][51] Q&A Session Summary Question: Can you provide insight into the opportunity at Tamboran and the challenges and upside based on prior work? - Management highlighted the importance of drilling great wells and learning from every data point to build the investment rationale for large pipelines [21][25] Question: Has the resource or well location assessment changed from previous disclosures? - Management clarified that there is no change in strategy, focusing on the Mid-Velkerri B Shale and drilling great wells [26][27] Question: What led to the decision to extend the soak period for the 6H well? - The soak period was extended to 60 days for consistency with previous wells, aiming to minimize variables and noise in the data [36][37] Question: What is the appetite for gas sales in the Darwin area? - Management expressed cautious optimism about the market for gas sales, with specific conversations ongoing with potential customers [47] Question: How is the company progressing with local stakeholders and permits? - Management reported strong support from the government and native title holders, emphasizing the benefits of the project for the local community [72][74]
Tamboran Resources Corporation(TBN) - 2026 Q2 - Earnings Call Transcript