Tamboran Resources Announces Partial Exercise of Underwriters’ Over-Allotment Option
TAMBORAN RESOURCES CORPORATION (TBN) Share Update July 2024 Tuesday 30th
Tamboran Resources Announces Partial Exercise of Over-Allotment Option
Tamboran Resources Corporation (ASX: TBN) announced that the underwriters of its recent initial public offering (IPO) have partially exercised their over-allotment option, purchasing an additional 308,750 shares at a price of US$24.00 per share.
Instant Summary:
- Underwriters partially exercised their over-allotment option for 308,750 additional shares.
- Shares priced at US$24.00 each.
- Expected closing date is July 30, 2024, subject to customary closing conditions.
- Gross proceeds of US$7.4 million will fund ongoing drilling activities for the Shenandoah South Pilot Project in the Beetaloo Basin.
Details of the Over-Allotment Option
Tamboran Resources Corporation recently completed its initial public offering (IPO) on the New York Stock Exchange (NYSE), issuing 3,125,000 shares of common stock at a price of US$24.00 per share. In connection with this IPO, the underwriters were granted a 30-day over-allotment option to purchase additional shares.
On July 30, 2024, the underwriters partially exercised this option, purchasing an additional 308,750 shares at the same price of US$24.00 per share. The closing of this transaction is expected to occur on the same day, pending customary closing conditions.
Use of Proceeds
The gross proceeds from the exercise of the over-allotment option amount to approximately US$7.4 million. According to the prospectus, Tamboran Resources intends to use these funds to support ongoing drilling activities for the proposed Shenandoah South Pilot Project in the Beetaloo Basin. This project aims to develop a significant natural gas resource in the Northern Territory of Australia.
Regulatory Compliance
A registration statement on Form S-1 related to the offering was declared effective by the U.S. Securities and Exchange Commission on June 26, 2024. Copies of the prospectus can be obtained from BofA Securities, Citigroup, and RBC Capital Markets.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities in any state or jurisdiction where such activities would be unlawful prior to registration or qualification under the securities laws.
The partial exercise of the over-allotment option reflects strong investor confidence in Tamboran Resources. The additional funds will enable the company to advance its drilling activities, potentially accelerating the development of the Shenandoah South Pilot Project. This could positively impact the company's stock price as investors anticipate future growth and production milestones.
Investor Reaction:
Analysts are likely to view the partial exercise of the over-allotment option as a positive indicator of market confidence in Tamboran Resources. The additional capital will support the company's strategic initiatives, which may lead to increased investor interest and a potential uptick in stock price.
Conclusion:
Investors should keep an eye on Tamboran Resources as the company progresses with its Shenandoah South Pilot Project. The successful exercise of the over-allotment option and the subsequent use of proceeds for drilling activities highlight the company's commitment to its growth strategy. Stay tuned for further updates on Tamboran's developments and market performance.