Tamboran Resources (ASX:TBN,NYSE:TBN) announced on Tuesday (July 30) that it has secured an additional US$7.4 million after its recent initial public offering (IPO) on the New York Stock Exchange.
The IPO’s underwriters have partially exercised their over-allotment option, agreeing to purchase a further 308,750 shares of the company out of an allowance of 468,750; each share is priced at US$24.
The company launched its IPO on June 18 and priced its shares at US$24 on June 27. It generated gross proceeds of US$75 million through the sale of 3,125,000 shares. The over-allotment option gave the underwriters a 30 day window to acquire more shares of Tamboran at the IPO price, with fewer underwriting discounts.
The funds raised through the IPO will be used for ongoing drilling activities at the Shenandoah South pilot project in Australia’s Beetaloo Basin. The additional US$7.4 million will also be dedicated to this project.
According to Reuters, Beetaloo Basin is “tipped to be one of the world’s most promising shale gas fields.”
Tamboran has a minimum working interest of 47.5 percent in Shenandoah South. It wants to establish a significant gas resource in the basin, and to contribute to the global shift to a lower-carbon future. Tamboran said the development “has the potential to support 13,000 jobs and boost economic activity in Australia by AU$17 billion by 2040.”
Sheffield Holdings, which is affiliated with Texas oil billionaire Bryan Sheffield, is Tamboran’s largest shareholder. Sheffield is the son of Scott Sheffield, also a key player in the oil sector, and the founder of Parsley Energy.
On June 19, the Northern Territory government granted major project status to Shenandoah South, underscoring its significance. First production from the asset is targeted for the first half of 2026.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.