0001193125-26-142348
SEC filingTamboran Resources subsidiary entered a Farm-In Agreement to farm down ~10,000 acres in Beetaloo Basin areas to DWE for up to US$28.5 million staged earn-in, contingent on Falcon acquisition and other conditions.
The Farm-In Agreement represents a strategic monetization of Tamboran Resources' Beetaloo Basin acreage, farming down approximately 10,000 acres in key pilot and development areas to DWE, owned by Formentera Partners, for a total potential value of US$28.5 million through phased carries. Phase 1 commits DWE to fund US$11.6 million of Tamboran's future work program in the Shenandoah North and South Pilot Areas, where Tamboran's ownership dilutes from 11.25% and 50% pre-transaction to 5.625% and 44.375% post-transaction, respectively. Phase 2, if elected, adds another US$11.6 million carry in the Beetaloo Central Development Area (BCDA), reducing Tamboran's stake from 12.5% to 10.0%, with an additional up to US$5.3 million milestone carry. Off-ramp provisions protect Tamboran by reassigning 50% of Pilot Area interests back if Phase 2 is not pursued, while assigning 50% BCDA to DWE. This deal aligns with DWE's joint venture with INPEX, Japan's largest E&P firm, over identical acreage, validating elevated valuations for defined Pilot Areas and adjacent appraisal zones like BCDA. CEO Todd Abbott highlighted the premium implied valuation exceeding recent trading metrics, enabling accelerated development while preserving balance sheet strength and operatorship. Completion hinges on critical precedents: Tamboran's acquisition of 98.1% in FOGA via the Falcon Oil & Gas Ltd. Plan of Arrangement and DWE-INPEX farm-in closure. The transaction supports Tamboran's path to first gas in Q3 2026, bolstering commercialization prospects amid ongoing Phase 2 farm-out processes.