Drill baby drill, Tamboran (NYSE: TBN) to acquire Falcon Oil for $172 million

Tamboran Resources Corporation (NYSE: TBN) announced it will acquire Falcon Oil & Gas Ltd. (FO, AIM: FOG) for $172 million to create a combined entity with approximately 2.9 million net prospective acres in Australia’s Beetaloo Basin.

Under the agreement, Tamboran will acquire Falcon’s subsidiaries in exchange for 6.5 million shares of Tamboran common stock and $23.7 million in cash. The transaction values Falcon at C$239 million ($172 million), representing a 19.7% premium to Falcon’s September 29 closing price and a 53.2% premium to its 90-day volume-weighted average price.

Following completion, Falcon shareholders will receive 0.00687 shares of Tamboran stock for each Falcon share they own and will hold approximately 26.8% of the combined company. Tamboran stockholders will retain 73.2% ownership.

The acquisition will increase Tamboran’s working interest in the Phase 2 Development Area to 80.62% and strengthen its position across the majority of the Beetaloo Basin. The combined company will have a pro forma market capitalization exceeding $500 million, according to the press release.

“The transaction between Tamboran and Falcon is a logical consolidation of two of the Beetaloo Basin’s most active companies,” said Richard Stoneburner, Tamboran’s Chairman and Interim CEO.

Both companies’ boards of directors have unanimously approved the transaction, which requires approval from shareholders of both companies and Tamboran stockholders’ approval for the stock issuance. The deal is expected to close in the first quarter of 2026.

The transaction is structured as a Plan of Arrangement under British Columbia’s Business Corporations Act. Additional approvals are required from minority shareholders of Falcon Oil & Gas Australia Ltd under Australian corporate law.