Tamboran Resources initiated with a Buy at Citi

Citi initiated coverage of Tamboran Resources with a Buy rating and $32 price target. The company’s narrative balances a true shale gas exploration opportunity within a politically stable and gas-short economy against operational and geological uncertainties, which must be overcome to demonstrate the long-term economic viability of the Beetaloo Basin and justify investment in subsequent phases, the analyst tells investors in a research note. The firm believes the combination of these factors “presents a high risk/high reward scenario.”