Tamboran Resources' (TBN) fiscal Q4 results and market update showed strong operational progress, highlighted by first gas sales from the Beetaloo Basin into the Northern Territory, RBC Capital Markets said in a note emailed Monday.

The company has been producing gas for almost a month, with the next focus on accumulating long-term production data and delineating the resource through several step-out wells planned over the next 18 months, RBC said.

The firm also highlighted improved drilling and stimulation efficiency, including a 24 day drilling time for the SS1-4H well.

RBC said sustaining the pace across a full campaign and translating it into lower completion costs per well will be a key test for Tamboran.

The company's fiscal Q1 update in mid-November will provide the first quarterly revenue period and an opportunity to assess 90 days of production history, analysts noted.

RBC maintained its outperform rating and $55 price target.

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