SYDNEY: Tamboran Resources shares fell as much as 10% in their Australian stock market debut on Friday, underscoring weak investor interest for the country’s biggest oil and gas float in a decade amid a global push towards greener energy.
Shares of the shale gas explorer, which has pitched itself as a “net-zero” producer to allay climate concerns, opened little changed from the initial public offering price at A$0.40 to give the company a market value of A$168.9 million ($126.03 million).
Its shares were trading around A$0.36 by 0340 GMT.
Tamboran raised more than A$60 million ($44.78 million) in its IPO, casting itself as a growth story with assets in the Beetaloo sub-basin of Northern Territory – considered comparable to the biggest U.S. natural gas field Marcellus Shale. It aims to start producing in 2025.
The company has said Beetaloo gas has a carbon dioxide content of just 3%, which it plans to offset using renewable energy, carbon credits, and carbon capture.
Tamboran plans to use the funds raised from the offering to drill three wells in the next 12 months, including two with gas producer Santos Ltd.
The assets it will explore with Santos are estimated to have 31 trillion cubic feet of prospective resources, net to Tamboran. ($1 = 1.3401 Australian dollars) – Reuters
Background from company’s website: Founded in 2009, Tamboran Resources Limited is a public natural gas company with a vision of supporting the net zero CO2 energy transition in Australia and Asia-Pacific through developing low CO2 unconventional gas resources in the Northern Territory of Australia.
Holding premium acreage in the highly prospective Beetaloo/McArthur basin, Tamboran is strategically positioned to commercialise these resources to address a forecast domestic energy shortfall and as a feed supplier to existing Australian LNG plants.
