In today’s Money WeekendMurray gives you a detailed analysis of the current technical setup in Tamboran Resources and shows you how a short-term trader and long-term investor might approach the situation. Watch today’s ‘Closing Bell’ video for more…
Origin Energy [ASX:ORG] sold out of their Beetaloo Basin holdings on Monday, and I reckon it has set up an interesting opportunity in Tamboran Resources [ASX:TBN].
They have teamed up with billionaire Bryan Sheffield and Falcon Oil and Gas to buy the permits off Origin. They are raising a company-transforming $138 million at 21 cents to purchase the assets and have enough working capital to pursue the opportunity.
Origin Energy will take a non-cash post-tax loss of $70–90 million on the sale, which shows they dumped the assets at a fire-sale price, but they walk away with a 5.5% royalty and will have access to any gas produced through a gas sales agreement for up to 36.5 PJ per annum over 10 years.
If you have the patience to wait 3-5 years to see whether Tamboran can get up and running, the upside could be well worth the wait.
In today’s ‘Closing Bell’ video, I give you a detailed analysis of the current technical setup in Tamboran Resources and show you how a short-term trader and long-term investor might approach the situation.
Editor, Money Weekend