Tamboran Resources Acquires Falcon Oil Gas, Expanding Beetaloo Basin Holdings

What's Happening?

Tamboran Resources has entered into a definitive agreement to acquire Falcon Oil & Gas Ltd., significantly expanding its holdings in Australia's Beetaloo basin. The acquisition involves Tamboran acquiring all Falcon subsidiaries in exchange for 6.5 million shares of Tamboran common stock and $23.7 million in cash, valuing Falcon at approximately $172 million. Falcon shareholders will receive a 26.8% stake in the combined company, while Tamboran shareholders will hold the remaining 73.2%. The transaction, unanimously approved by both companies' boards, is expected to close in the first quarter of 2026, pending shareholder approval. This move strengthens Tamboran's position in the Beetaloo depocenter, increasing its working interest in the Phase 2 Development Area to over 80%.

Why It's Important?

The acquisition of Falcon Oil & Gas by Tamboran Resources is a strategic consolidation that enhances Tamboran's operational scale and flexibility in future farmout negotiations. By consolidating operations in the Beetaloo basin, Tamboran aims to improve efficiency, streamline decision-making, and accelerate development across its expanded footprint. The Beetaloo basin is considered one of Australia's most promising shale gas plays, and this transaction is expected to be accretive to Tamboran's shareholders. The enlarged position will support future development, capital efficiency, and long-term production growth, potentially attracting new development partners and boosting the region's energy output.

What's Next?

Upon completion of the acquisition, Tamboran will hold approximately 2.9 million net prospective acres in the Beetaloo basin, including non-operating interests in Daly Waters Energy acreage. The company plans to maintain a material stake while attracting new development partners through a farmout process led by RBC Capital Markets. This strategic move is expected to enhance Tamboran's ability to support future development and capitalize on the basin's potential for long-term production growth.