Tamboran Res — Financial Results

Zero Revenue and Rapidly Growing Losses as Drilling Activity Accelerates

Tamboran has generated no revenue since inception — it is still drilling exploratory wells to prove whether its gas resources are commercially viable. Operating costs nearly doubled year-over-year, driven by new one-time items (a $6.0M LNG feasibility study and a $6.0M Checkerboard fee, a contractual payment to a joint venture partner settled in stock) alongside rising staff costs and general expenses. Investors should understand this company is spending heavily now in hopes of generating gas sales from mid-2026 at the earliest.

Cash Is Shrinking Fast, With a Specific Plan to Fund the Next Phase

Cash fell by $35.3M during the year, with $98.8M spent on investing activities (mostly drilling and infrastructure) offset by $101.1M raised through equity and partner contributions. The company says its existing cash plus a fresh $55.4M private placement (equity raise, closed July 2025) should be enough to drill three more wells and complete flow testing — but it explicitly warns that significant additional funding may be needed beyond that.

First Government Approval to Actually Sell Gas Is a Meaningful Milestone

In September 2025, the Beetaloo Joint Venture received Northern Territory government approval to sell appraisal gas under new Beneficial Use of Gas (BUG) legislation — the first such approval ever granted. This clears the way for gas sales of up to 40 TJ (terajoules) per day from the Shenandoah South Pilot Project, targeted to begin around mid-2026. This is a genuine step forward: the company now holds all necessary approvals to sell gas from this project, removing one major regulatory hurdle.

Major Leadership Shake-Up Introduces Significant Uncertainty

Just after the fiscal year ended, the CEO was terminated and resigned from the board, and a board director retired — both connected to a Cooperation Agreement with a new activist investor group led by the Sheffield Group (a prominent U.S. oil and gas family). Two new directors were appointed, and the board chairman stepped in as interim CEO. Leadership transitions at a pre-revenue, exploration-stage company carry real execution risk, particularly when a major drilling program is underway.

Capital Commitments Are Large Relative to Current Cash

The company has over $110M in committed future capital expenditure across its permits and midstream infrastructure, against $39.4M in cash at year-end. The largest single commitment is $75.6M for the Beetaloo Joint Venture drilling and seismic program through May 2028. This makes ongoing fundraising — through equity, debt, or asset sales — essentially non-optional for the company to meet its obligations.