Tamboran Resources Ltd., Sydney, is adding Beetaloo basin assets in the Northern Territory of Australia with the acquisition of Sweetpea Petroleum Pty Ltd.
The company will acquire all shares in Sweetpea in exchange for Tamboran equity (no cash) issued to Longview Petroleum LLC, holder of 100% of Sweetpea, resulting in Longview owning 29.95% of Tamboran upon closing.
With the deal, Tamboran will be 100% owner and operator of EP 136, EP 143, and EP 197(A), expanding its resource holding in the core of the Proterozoic-age basin beyond its existing 25% working interest in EP 161.
EP136 sits adjacent to EP161 and in combination cover the portion of the Beetaloo subbasin with the thickest and highest quality shales as delineated by seismic and intersection by wells drilled to date, including Tamboran’s Tanumbirini #1 vertical well fracture stimulated with Santos Ltd. earlier this year (OGJ Online, July 24, 2019; Jan. 23, 2020).
Tamboran and Santos plan to drill two horizontal wells, Tanumbirini #2H and Tanumbirini #3H, targeting the Middle Velkerri formation in EP 161 during 2021.
EP 136 and EP 161 lie directly next to EP 76 owned by Origin Energy Ltd. and Falcon Oil & Gas (OGJ Online, Apr. 7, 2020). Origin and Falcon recently completed civil engineering and constructions and will drill the 76-N2H horizontal well in EP 76 targeting the Middle Velkerri formation in 2021.
Regulatory approval for the deal is expected in early 2021. Upon closing, Longview will be offered a non-executive director position on Tamboran’s board.
Separately, Tamboran closed a $10 million (Aus.) private placement equity funding transaction with US and European institutional investors.
