Tamboran and DWE Sign Farm-in Agreement to Advance Beetaloo Basin Development
Tamboran Resources and Formentera Partners executed a Farm-in Agreement to advance development of the Beetaloo Basin in Australia's Northern Territory. Under the Farm-in Agreement, Tamboran will farm down approximately 10,000 acres of its working interest across the Shenandoah North Pilot Area and the Shenandoah South Pilot Area and the Beetaloo Central Development Area to DWE. The Farm-in Agreement provides for a staged earn-in, up to ~$28.5M, subject to structured off-ramp provisions. The agreement follows DWE announcing a strategic joint venture with INPEX Corporation, Japan's largest E&P and operator of the 8.9 MTPA Ichthys LNG project in Darwin. The transaction recognizes the value premium that can be realised on Beetaloo acreage as it is defined and matured, like the Pilot Area, as well as the value that can be realised for adjacent appraisal areas, like the BCDA. It is an important step towards commercialization. Completion of the transaction is subject to certain conditions precedent in the farm-in between DWE and INPEX along with closure of Tamboran's Falcon acquisition. Phase 1 carry: Under Phase 1 of the Farmout Agreement, DWE will provide Tamboran with a $11.6M carry commitment in respect to future work program spend in the Pilot Area. Phase 2 carry: Subject to DWE electing to proceed to Phase 2, DWE will carry TBN for an additional $11.6M carry in the BCDA. Additional consideration: Upon certain conditions being met, DWE will also provide Tamboran with an additional milestone carry of up to $5.3M. Reassignment/Assignment: If DWE decides not to proceed with Phase 2, Tamboran will receive, by way of reassignment, 50% of the post-acreage ownership in the Pilot Area and assign 50% of the post-acreage ownership in the BCDA to DWE. Completion of the transaction is subject to satisfaction of certain conditions precedent required by DWE.
