Tamboran Acquires Falcon, Consolidating Australia's Busy Oil Basin

Core Viewpoint - Tamboran Resources Corp. and Falcon Oil & Gas Ltd. have signed a definitive agreement to merge operations in Australia's Beetaloo Basin, creating a combined entity with approximately 2.9 million net acres and a pro forma market capitalization exceeding $500 million [1]. Group 1: Merger Details - Tamboran will acquire Falcon by purchasing all its subsidiaries for 6.54 million shares of Tamboran stock and $23.7 million in cash [2]. - Falcon shareholders will receive Tamboran shares at a ratio of 0.00687 per Falcon share, resulting in Falcon shareholders holding about 27% of the combined company, while Tamboran stockholders will retain approximately 73% [3]. - The deal values Falcon's subsidiaries at 239 million Canadian dollars ($172 million), representing a 20% premium to its closing price on September 29 and over 53% above its 90-day average [3]. Group 2: Strategic Implications - The merger increases Tamboran's working interest in the Beetaloo's Phase 2 Development Area to over 80%, enhancing its position ahead of a farmout process with RBC Capital Markets [4]. - The consolidation aligns Tamboran with Daly Waters Energy across exploration permits EP 76, 98, and 117, following a checkerboarding agreement [4]. - The combination is expected to provide Falcon shareholders with stronger exposure to ongoing pilot development and eliminate uncertainties regarding their future roles in projects [5]. Group 3: Approval and Future Outlook - The boards of both companies have unanimously approved the deal, which is anticipated to close by the first quarter of 2026, pending shareholder and regulatory approvals in Canada, Australia, and under AIM rules in the U.K. [6]. - Upon completion, Falcon will cancel its listings on the TSX Venture Exchange and AIM [6]. - The acquired assets include subsidiaries in Hungary, Ireland, South Africa, and Australia, which collectively reported $60.7 million in assets and a $2.2 million loss in 2024 [6]. Group 4: Market Reaction - Following the announcement, Tamboran's shares increased by 21.11% to $27.42, while Falcon's shares rose by 6.42% [7].