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Shares of Tellurian (NYSEMKT: TELL) rocketed 19.5% in May, according to data provided by S&P Global Market Intelligence. Fueling the natural gas company was the progress it made on its strategy to develop its Driftwood liquefied natural gas (LNG) export project. That forward momentum has carried over into early June.

Finally making progress

Tellurian reported its first-quarter results and progress with its Driftwood LNG project in early May. The company's natural gas production business continued to struggle due to lower prices. Its revenue declined nearly 50% to $25.5 million while its net loss ballooned to $44 million (up from $27.5 million in the year-ago period).

However, on a more positive note, the company continued to move toward making a final investment decision on Driftwood. It also continued to pursue steps to shore up its balance sheet and liquidity position.

It took its biggest step forward in late May by agreeing to sell its integrated upstream natural gas assets to Aethon Energy Management for $260 million. That deal will bring in cash to repay debt, putting it in a better position to fund Driftwood. In addition, Aethon will become a customer of Driftwood, agreeing to buy 2 million tons of LNG per year.

Tellurian was reportedly close to making even more progress on Driftwood in early June. Reuters reported that Saudi oil giant Aramco was in talks with Tellurian about buying a stake in its project. Aramco is also in discussions with rival NextDecade about purchasing gas from a proposed fifth processing unit at its Rio Grande facility. Australian energy company Woodside is also reportedly evaluating an investment in Driftwood.

Tellurian has been seeking investors to help fund a portion of Driftwood's cost. The company is also looking for additional customers for the project. Securing an investment from Aramco or Woodside would bring the project closer to becoming a reality.

Is Tellurian a buy after its rally?

Tellurian's deal with Aethon Energy and reports it's close to securing an investment for Driftwood have helped fuel a big rally in its stock over the past few weeks. It has already rallied another 20% in early June on reports of Aramco's interest in Driftwood.

Even with that rally, shares of the LNG developer are still down by more than 60% over the past year and 90% over the last three. The company's stock has been under a lot of pressure due to concerns about its ability to get Driftwood off the ground. While it has made a lot of progress and appears to be on the right track, there's still a high risk that it won't be able to secure the contracts and funding needed to build Driftwood. Because of that, Tellurian is much too risky for most investors.

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Matt DiLallo has positions in Woodside Energy Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.