Tamboran to raise A$138mn to fund Origin deal
Sydney-listed Tamboran Resources will raise up to A$138mn ($93mn) before costs via a share placement to fund the purchase of Origin Energy’s stake in Beetaloo basin assets, it said on September 20.
Origin on September 19 announced it will divest its interest in the Northern Territory’s Beetaloo basin, and exit its upstream exploration permits not related to Australia Pacific LNG. Tamboran and its substantial shareholder, Bryan Sheffield, will buy a 77.5% stake in the Beetaloo joint venture from Origin for A$60mn and a royalty on future production over the life of the field across the interest being acquired.
Origin has also executed a gas sales agreement for up to 36.5 petajoules/year over 10 years, conditional on Tamboran taking a final investment decision on developing the project and associated infrastructure and obtaining regulatory approvals.
Tamboran’s institutional placement includes a A$98mn private placement of shares to strategic investors and A$40mn to institutional investors. The shares have been offered at A$0.21/share, representing a 22.2% discount from the company’s closing price of September 14.
Post the completion of the deal, Tamboran will assume operatorship of the Beetaloo joint venture, which is 22.5% owned by Falcon Oil & Gas.