Tamboran shares fell 5.0% after earnings, with the likely concern being that commercial supply remains in commissioning and current volumes are limited to 25 TJ/day by market nominations. The 40 TJ/day take-or-pay contract has not yet started, while production performance and the potential cost benefits from local sand remain to be proven over time.
- Gas sales to the Northern Territory market began, but flow had lasted only 20 days at the time of the call; current nominations are 25 TJ/day.
- During commissioning, Tamboran receives 75% of the gas price. The company expects take-or-pay terms on the 40 TJ/day contract quantity to apply after commissioning and production testing are complete.
- The SS-2 campaign completed 178 stimulation stages across 30,000 lateral feet, including 10 stages using locally supplied sand. Management said longer-term flow rates and recoveries will be needed to assess performance.
- Tamboran estimates local sand could save $4 million per well with a 10,000-foot horizontal section, but that saving is not yet established across future campaigns.
- The company reported US$225 million in cash and US$31 million in undrawn debt at quarter-end. Including US$15 million expected from Daly Waters Energy, subject to conditions, pro forma cash would be US$240 million.
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