Tamboran Acquires Falcon Oil Gas, Expanding Beetaloo Basin Holdings

What's Happening?

Tamboran Resources has announced a definitive agreement to acquire Falcon Oil & Gas Ltd., significantly expanding its holdings in Australia's Beetaloo basin. The acquisition will make Tamboran one of the largest acreage holders in the region, with approximately 2.9 million net prospective acres. The deal 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 about $172 million. This transaction, approved by both companies' boards, is expected to close in the first quarter of 2026, pending shareholder approval. The acquisition will enhance Tamboran's position in the Beetaloo depocenter and increase its working interest in the Phase 2 Development Area to over 80%.

Why It's Important?

This acquisition is significant as it consolidates two of the most active operators in the Beetaloo basin, potentially enhancing operational efficiency and accelerating development. For Tamboran, this move is strategic, allowing the company to expand its scale and maintain flexibility in future farmout negotiations. The Beetaloo basin is considered one of Australia's most promising shale gas plays, and this consolidation could streamline decision-making and boost long-term production growth. The transaction is expected to be accretive to Tamboran's shareholders, with the implied acreage value representing a slight discount to the company's current valuation.

What's Next?

Following the acquisition, Tamboran plans to focus on enhancing efficiency and accelerating development across its expanded footprint in the Beetaloo basin. The company aims to attract a new development partner through a farmout process led by RBC Capital Markets while maintaining a significant stake. The enlarged position is expected to support future development, capital efficiency, and long-term production growth. Shareholder approval is the next step for the transaction to proceed, with completion anticipated in early 2026.