A high-profile NT gas company is upping stakes to the United States

A company with a huge stake in the Northern Territory has announced it is relocating to the US. Read why it’s leaving.

Beetaloo Basin developer Tamboran Resources will re-domicile the Company and its Tamboran Group subidiaries from Australia to the United States

The company is seeking authorisation for the move from shareholders by way of a proposed scheme of arrangement.

The company structure will be United States-based but Tamboran will remain listed on the Australan Stock Exchange.

Ordinary shares in Tamboran will be transferred to a newly formed corporation in Delaware state.

The company’s share price on Friday was 14 cents.

A statement, posted on the ASX by Tamboran’s board of directors and authorised by company managing director and chief executive Joel Riddle, said the move would position Tamboran “for the next phase of its growth” as the company seeks to accelerate development at the Betaloo Sub-basin.

Joel Riddle chief executive Tamboran Resources

The ASX statement said the move would better position Tamboran Group in a deeper capital market in the United States, where shale investors are more active.

If it goes ahead the Beetaloo basin project will be Australia’s first unconventional shale gas development, with Tamboran believing the move to the US will benefit existing shareholders.

“(It) will allow existing Tamboran shareholders to benefit from the anticipated growth and more clearly evaluate the performance and future prospects of Tamboran,” it said.

The statement said it would provide access to a broader US investor pool, which is more familiar with shale developments than were previously unable or unlikely to invest in non-US securities.

It would also improve access to lower-cost US debt and equity capital markets.

The company said this could enable Tamboran to fund future growth at a lower cost “with less dilution to existing shareholders”.

Tamboran US HoldCo will become the new parent company of Tamboran Grouup and will retain the company’s listing on the ASX via CHESS depositary interests.

Tamboran Shareholders will be given the opportunity to vote on the Scheme at a meeting, which is expected to be held in late November.

Subject to the conditions of the scheme being satisfied, the shift is expected to be implemented in mid December.

“The company’s board of directors unanimously recommends that Tamboran shareholders vote in favour of the Scheme,” the ASX statement said.

Tamboran is the largest player in the Beetaloo Basin with about two-million acres within the Greater McArthur Basin in the eastern Top End.

It is hoping for first gas production in 2024.

Sydney-based oil and gas company Empire Energy is the other developer looking to produce gas at the Beetaloo.

Originally published as A high-profile NT gas company is upping stakes to the United States