Core Insights - Tamboran Resources Corp. and Falcon Oil & Gas Ltd. have signed a deal to create approximately 2.9 million net prospective acres in the Beetaloo Basin, resulting in a combined company with a pro forma market capitalization exceeding $500 million [1] Transaction Details - Tamboran will acquire Falcon for 6.537 million shares of TBN and $23.7 million in cash, with the transaction expected to close in Q1 2026 [2] - Post-transaction, Falcon shareholders will receive TBN shares at an exchange ratio of 0.00687 shares of TBN for each Falcon share, resulting in Falcon shareholders owning about 26.8% of the combined entity [2] Valuation Metrics - The transaction values Falcon's subsidiaries at C$239 million (approximately $172 million), reflecting a 19.7% premium over Falcon's closing price on September 29 and a 53.2% premium to the 90-day traded VWAP [3] - The implied acreage value of $169 per acre from the acquisition represents a 4% discount to Tamboran's current implied acreage value of $176 per acre, indicating potential accretion for Tamboran stockholders [4] Strategic Implications - The acquisition will enhance Tamboran's working interest in the Phase 2 Development Area to 80.62% and align further with Daly Waters Energy, LP across the EP 76, 98, and 117 acreage [5] - Following the announcement, TBN shares increased by 11.11% to $25.10 in pre-market trading on the New York Stock Exchange [5]
Tamboran, Falcon Merge To Form Around 2.9 Mln Acre Beetaloo Basin, TBN Pre-Market Stock Up