Tamboran Acquires Beetaloo Basin-Focused Sweetpea Petroleum
Sydney-based Tamboran Resources Ltd. has entered into an agreement with Longview Petroleum LLC for the acquisition of its wholly-owned subsidiary, Sweetpea Petroleum Pty Ltd., for an undisclosed consideration payable in stock. Sweetpea currently holds interests in certain Beetaloo basin permits in Australia’s Northern Territory.
Under the terms of the agreement, Tamboran will acquire 100% of Sweetpea in exchange for issuing Tamboran equity to Longview. As a result, upon completion, Longview will hold a 29.95% stake in Tamboran, and will be offered a non-executive director position on Tamboran’s board.
Sweetpea is primarily focused on operations targeting the unconventional oil and gas reserves in the Beetaloo basin and currently holds a 100% operated interest in exploration permits EP 136, EP 143, and EP 197(A) (under application).
Exploration permit EP 136 is located in the Barkly region of Northern Territory, and sits adjacent to EP 161, in which Tamboran holds a 25% working interest. The license area straddles the portion of the Beetaloo sub-basin which is analogous with the most productive zones in the U.S. Marcellus shale play. Work commitments for the permit include the acquisition of two 2D seismic data sets with a combined 550 sq. km coverage, a ground gravity survey including ancillary activities, and the drilling of an exploration well (currently scheduled to be drilled in 2021).
“The acquisition of EP 136 is a very important milestone for the company. Tamboran was one of the earliest pioneers in the Beetaloo Basin and have worked closely with Santos as a partner since their farm-in in 2012. We are now resuming our role as an operator for what we believe will be the next phase of development in the Beetaloo,” said Joel Riddle, Tamboran’s CEO & Managing Director.
Tamboran is a public unlisted company engaged in the development of unconventional gas reserves in Northern Territory, with a primary focus on the Beetaloo/McArthur basin.
The transaction is subject to customary closing conditions, including receipt of regulatory approval, and is expected to close in early 2021.