Tamboran Resources acquires Falcon Oil & Gas in $172m Beetaloo Basin deal
The $172m deal to acquire Falcon Oil & Gas cements Tamboran as the leading gas developer in the Beetaloo.
Tamboran Resources has agreed to acquire Falcon Oil & Gas in a deal that consolidates two of the region’s most active shale gas players and accelerates the push towards basin-wide development.
Under the transaction, Tamboran will acquire all Falcon subsidiaries in exchange for 6.54 million NYSE-listed Tamboran shares and $US23.7m ($35.9m) in cash. Falcon shareholders will own 26.8 per cent of the combined company once the deal closes, receiving stock on a 0.00687-for-1 basis.
The deal values Falcon $US172m, a 19.7 per cent premium to its last close on the Toronto Stock Exchange.
Tamboran interim chief executive Richard Stoneburner said the deal materially expanded the company’s footprint, giving it 2.9 million net acres in the Beetaloo, lifting its working interest in the crucial Phase 2 Development Area to more than 80 per cent.
“Strategically, this transaction strengthens our ownership over the Phase 2 Development Area, where we are undertaking a farmout process with RBC Capital Markets,” Mr Stoneburner said.
“It allows us to sell down a larger position to a new partner while maintaining a material working interest.”
The deal comes just a day after Tamboran said it would proceed with its pilot project after the NT government announced it would underwrite $75m of a $180m loan to Tamboran and its partner to finance the pilot.
The NT government also committed to buying gas from the venture as it scrambles to secure supply amid concerns about gas supplies — which powers the overwhelming majority of the region.
The future of the Beetaloo Basin — one of Australia’s largest untapped gas resources — has emerged as a flashpoint in the energy transition.
While the Northern Territory government granted approval for fracking in 2023, given the potential for jobs and billions in royalty revenue, the development has faced stiff opposition from environmentalists and some Indigenous groups who cite cultural and climate concerns.
Falcon chief executive Philip O’Quigley said the deal moved his company’s shareholders “directly to the centre of operations” in the Beetaloo.
“This transaction removes any uncertainty around Falcon’s participation in the farmout of the Phase 2 Development Area,” he said.
Mr Stoneburner will remain as chairman and interim CEO, with no changes to Tamboran’s board.
The acquisition follows Tamboran’s final investment decision on its Shenandoah South Pilot Project, underscoring its strategy of consolidating control in the Beetaloo ahead of large-scale gas development.
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Originally published as Tamboran Resources acquires Falcon Oil & Gas in $172m Beetaloo Basin deal
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