Tamboran Resources has gone on to enter into a definitive agreement so as to acquire Falcon Oil & Gas Ltd., therefore creating one of the largest acreage holders in the Beetaloo basin of Australia with almost 2.9 million net prospective acres.
The news of Tamboran to acquire Falcon Oil & Gas means that as per the transaction, Tamboran is going to acquire all Falcon subsidiaries, and that too in exchange for 6.5 million shares of the Tamboran common stock and, at the same time, with $23.7 million in cash.
The deal happens to value Falcon at almost $172 million and is going to give its shareholders a 26.8% stake as far as the combined company is concerned. It is well to be noted that Tamboran shareholders are going to hold the leftover 73.2%. Apparently, the transaction has got the unanimous approval of both the boards of the companies and is anticipated to close within the first quarter of 2026, of course pending the shareholder nod.
Interestingly, Tamboran to acquire Falcon Oil & Gas would mean that this acquisition would make its position across the Beetaloo depocenter stronger and at the same time also boosts its working interest within the Phase 2 Development Area to over 80%. That acreage is at present the focus of one of the farmout processes, which is led by RBC Capital Markets, that looks forward to attracting a new development partner while at the same time also allowing Tamboran to go ahead and maintain a material stake.
Richard Stoneburner, who happens to be the Tamboran chairman and interim CEO, opined that the deal goes on to represent a logical consolidation when it comes to two of the most active operators in the basin, thereby enabling Tamboran to widen its scale and at the same time also maintain agility in the future negotiations of farmout.
Philip O’Quigley, the CEO of Falcon, went on to note that the transaction gets rid of any uncertainty that surrounds the participation of Falcon in the Phase 2 farmout and at the same time also offers shareholders the direct exposure to the ongoing pilot development activities of Tamboran in the Beetaloo.
It is well to be noted that the Beetaloo Basin of Australia happens to be regarded as one of the most prospective shale gas plays of Australia. Through consolidating the operations, Tamboran looks forward to enhancing the efficiency, streamlining the decision-making, and simultaneously speeding up the development across the expanded footprint that it has. The company opines that the transaction is accretive to its shareholders, having an implied acreage value that represents a slight discount to the present valuation of Tamboran.
Upon its completion, Tamboran is going to hold almost 2.9 million net prospective acres within the basin, which includes the non-operating interests at the Daly Waters Energy acreage. Tamboran anticipates the enlarged position to go ahead and better support the capital efficiency and future development, along with long-term growth in production.
