Key Highlights

  • Tamboran and Daly Waters Energy became the first parties to sell gas from the Beetaloo Basin, with net gas sales of 0.31 Bcf and Revenue of US$1.8 million.
  • The SS2-2H ST1 well delivered an average rate of 10.2 MMcf/d over 720 hours of interrupted production.
  • Cash balance and near-term inflows totalled US$180 million at 30 September 2026, including Tamboran’s share of restricted cash.
  • Net drawn Debt was US$37 million, with US$26 million of undrawn debt remaining on a net Tamboran basis.

Tamboran Resources Corporation (NYSE:TBN; ASX:TBN) has released its first quarter activities report for the period ended 30 September 2026. The Natural Gas exploration and production company, which holds approximately 2.8 million net prospective acres in the Beetaloo Basin in the Northern Territory, reports that gas sales from the basin have begun and that its pilot project is transitioning into commercial operation.

First Gas Sales and Production Rates

During the quarter, Tamboran and Daly Waters Energy delivered total net gas sales of 0.31 Bcf and earned revenue of US$1.8 million. First cash inflows were received in early November 2026. The company says the sales were made into the Northern Territory domestic market. The Sturt Plateau Compression Facility, a 50/50 joint venture with Daly Waters Infrastructure, began processing gas and delivering first sales in early September 2026. The Facility is undergoing commissioning, and Tamboran and Daly Waters Energy are receiving 75% of the contract gas price until a take-or-pay contract commences, reflecting the interruptible nature of supply.

Well performance was a central focus of the quarter. The SS2-2H ST1 well delivered an average flow rate of 10.2 MMcf/d over an interrupted 720-hour period from about 5,500 feet of lateral. The company says the well produced minimal water after being shut in for a year. The SS2-3H and SS2-5H wells delivered average IP30 rates of 8.8 and 10.0 MMcf/d respectively. The company says both wells are sustaining relatively high bottomhole pressures, which it links to further deliverability as the wells clean up.

Financial Position and Capital Spending

Capital expenditure for the quarter totalled US$56.9 million on a net Tamboran basis, comprising US$48.6 million of exploration and evaluation, US$8.1 million of Assets under construction and US$0.2 million of land and buildings. The spending related primarily to drilling and stimulation on the SS2 pad, drilling on the SS1 pad, drilling in the EP 161 permit and construction of the compression facility. Cash balance was US$165 million at 30 September 2026, down from US$225 million in the prior quarter. Drawn debt was US$37 million, and net cash stood at US$128 million, compared with US$195 million in the prior quarter.

EBITDAX, which the company describes as a proxy for operating cash flow, was negative US$14.5 million for the quarter. The company notes that sales revenue and direct costs for the pilot project were capitalised during the quarter because the project has not reached practical completion or commercial operations date under the gas sales agreement.

Drilling, Partnerships and Corporate Updates

Tamboran completed a three-well drilling program on the SS1 pad with Helmerich & Payne, with roughly 29,000 feet of combined usable lateral. Stimulation using Liberty Energy’s frac fleet is planned for the December quarter. Santos, the operator of EP 161 in which Tamboran holds a 25% interest, has drilled a pilot hole and is drilling a horizontal section in the Velkerri B Shale. A memorandum of understanding with Liberty Energy was signed in September 2026 to extend the stimulation and wireline services agreement to 2029, with a mutual option to extend to 2031, subject to final agreements.

Tamboran also paid A$4.1 million to become the sole Shareholder of Falcon Oil & Gas Australia Limited, with those funds held on trust for former shareholders. Todd Abbott was appointed Managing Director in addition to his role as Chief Executive Officer on 19 October 2026. The company’s annual meeting of stockholders is scheduled for 19 November 2026.

Closing Perspective

The quarter marks the start of gas sales from the Beetaloo Basin, while the company’s capital spending and cash position reflect continued development. Tamboran’s next disclosures are expected to cover the stimulation of the SS1 pad, the ramp-up of compression facility commissioning and the take-or-pay gas contract scheduled to begin in early 2027. Those developments will indicate how the production figures translate into revenue in future quarters.