Core Viewpoint - Tamboran Resources Corporation is acquiring Falcon Oil & Gas Ltd. to create a combined business with approximately 2.9 million net prospective acres in the Beetaloo Basin, enhancing operational focus and shareholder value [2][5][6]. Transaction Details - The acquisition involves Tamboran acquiring all subsidiaries of Falcon for 6,537,503 shares of Tamboran NYSE Common Stock and cash consideration of US$23.7 million [5][8]. - The transaction values Falcon's subsidiaries at C$239 million (Stg£128 million), with an implied offer price of C$0.2154 (Stg£0.1152) per share, reflecting a 19.7% premium to Falcon's closing price on September 29, 2025, and a 53.2% premium to the 90-day traded VWAP [5][6]. - Upon completion, Falcon shareholders will receive shares of Tamboran at an exchange ratio of 0.00687 shares of Tamboran for each Falcon Common Stock, resulting in them owning approximately 26.8% of the pro forma business [5][9]. Strategic Implications - The transaction aims to strengthen Tamboran's working interest in the Phase 2 Development Area to 80.62%, aligning further with Daly Waters Energy, LP across the entire EP 76, 98, and 117 acreage [5][6]. - The consolidation is viewed as a logical step to enhance operational efficiency and market position within the Beetaloo Basin [6][8]. Approval and Closing - The transaction has been unanimously approved by the Boards of Directors of both Tamboran and Falcon and is expected to close in the first quarter of 2026, pending shareholder approvals and satisfaction of closing conditions [11][12]. - Following the transaction, Falcon will seek shareholder approval for the cancellation of its shares from trading on the AIM market and the TSX Venture Exchange [5][11]. Financial Performance of Subsidiaries - In the twelve months ending December 31, 2024, Falcon's subsidiaries reported a loss of US$2.2 million and total assets of US$60.7 million [5].

Core Viewpoint - Falcon Oil & Gas Ltd has announced a significant achievement in the Beetaloo Sub-basin with the Shenandoah S2-2H ST1 well achieving an average 60-day initial production (IP60) flow rate of 6.8 million cubic feet per day (MMcf/d), marking the highest IP60 result in the region to date [2][5]. Drilling Campaign - The 2025 drilling campaign has commenced, which is the largest drilling initiative in the Beetaloo to date, targeting up to three 10,000-foot horizontal wells to be drilled back-to-back over the next few months [6][8]. - This campaign aims to provide further evidence of the commercial potential of the Beetaloo Sub-basin [6]. Production Results - The average flow rate of 12.4 MMcf/d over a normalized 10,000-foot horizontal section aligns with the average of over 11,000 wells in the Marcellus Shale dry gas area over a 12-month period, indicating strong commercial deliverability of gas from the Beetaloo to the Australian domestic East Coast gas market [8]. - The exit rate maintains a steady, low-declining curve at 6.4 MMcf/d with a flowing wellhead pressure of approximately 720 psi, showing less decline compared to the Shenandoah South 1H well over the last 30 days of testing [8]. Company Insights - Falcon Oil & Gas Ltd is focused on the exploration and development of unconventional oil and gas assets, with its current portfolio primarily in Australia [10]. - Falcon Australia has opted to reduce its participating interest in the three wells to 0%, resulting in no cost exposure to the drilling of these wells [8].