Tamboran’s Bold Move: Acquiring Falcon to Command 2.9 Million Acres in Beetaloo Basin
Tamboran Resources is set to acquire Falcon Oil & Gas Ltd., consolidating a dominant position in the Beetaloo Basin with nearly 3 million net prospective acres. The deal, valued at US$172 million, positions Tamboran as a leading Australian E&P player ahead of key development phases.
- Acquisition valued at US$172 million with 19.7% premium to Falcon’s recent share price
- Tamboran’s Beetaloo Basin acreage increases by over 50% to approximately 2.9 million net prospective acres
- Falcon shareholders to own about 26.8% of the combined company post-transaction
- Transaction expected to close in Q1 2026, subject to shareholder and court approvals
- Strengthened Tamboran interest in Phase 2 Development Area to 80.62%, enhancing farmout prospects
Strategic Consolidation in the Beetaloo Basin
Tamboran Resources Corporation has announced a significant acquisition of Falcon Oil & Gas Ltd., a move that will reshape the competitive landscape of the Beetaloo Basin, one of Australia’s most promising shale gas regions. The transaction, structured as a Plan of Arrangement under British Columbia law, will see Tamboran issue 6.54 million shares and pay US$23.7 million in cash, valuing Falcon’s subsidiaries at approximately US$172 million. This represents a 19.7% premium over Falcon’s closing price on the Toronto Stock Exchange just before the announcement.
By combining forces, Tamboran will increase its net prospective acreage by more than 50%, reaching around 2.9 million acres across the Beetaloo depocenter. This consolidation gives the combined entity control over more than 90% of the basin’s net prospective acres, positioning it as the dominant player in the region.
Enhancing Development and Growth Prospects
The acquisition notably boosts Tamboran’s stake in the Phase 2 Development Area to 80.62% before any farmout, a critical step as the company prepares for upcoming development phases. With over 40,000 gross drilling locations identified, the enlarged portfolio offers substantial opportunities for exploration and production growth. The deal is also accretive, with an implied acreage value of US$169 per acre, slightly below Tamboran’s current traded acreage valuation, suggesting a financially prudent expansion.
Falcon shareholders will receive Tamboran shares at an exchange ratio of 0.00687 per Falcon share, resulting in Falcon shareholders owning approximately 26.8% of the combined company. This equity stake reflects a significant partnership and aligns interests as the companies integrate operations.
Governance and Transaction Outlook
The boards of both companies have unanimously approved the transaction. Dick Stoneburner will continue as Chairman and Interim CEO of Tamboran, with no planned changes to the board, signaling stability during the integration phase. The transaction remains subject to customary closing conditions, including shareholder approvals and court sanction, with an anticipated closing in the first quarter of 2026.
Investors should note the forward-looking nature of the deal, with inherent risks such as regulatory approvals, market conditions, and integration challenges. However, the strategic rationale is clear – consolidating the Beetaloo Basin acreage ahead of critical development milestones enhances Tamboran’s competitive positioning and growth potential.
Bottom Line?
As Tamboran and Falcon unite, the Beetaloo Basin’s future as a key energy hub gains fresh momentum, but execution risks remain ahead.
Questions in the middle?
- Will shareholder and court approvals proceed smoothly to meet the Q1 2026 closing target?
- How will Tamboran integrate Falcon’s operations and personnel to maximise synergies?
- What impact will this consolidation have on upcoming farmout negotiations and capital raising?
