Big moves are shaking up the Australian energy sector as Falcon Oil & Gas and Tamboran Resources push forward with a landmark deal set to reshape the Beetaloo Basin landscape. The merger is not just about scale—it’s about positioning both companies for a new era of unconventional gas development.
What Happened
Falcon Oil & Gas and Tamboran Resources have entered into a definitive agreement that will see Tamboran acquire Falcon’s assets and operations. The transaction has received unanimous approval from both boards and is now progressing toward a targeted close in the first quarter of 2026.
The deal consolidates two major players in the Beetaloo Sub-basin, creating a combined entity with approximately 2.9 million net prospective acres across the region. This positions the new business as the dominant force in the Beetaloo depocenter, with a strengthened working interest in key development areas.
Why It Matters
The merger is more than a simple acquisition—it’s a strategic alignment that will accelerate the development of one of Australia’s most promising unconventional gas resources. By combining their portfolios, the companies are streamlining operations and reducing royalty burdens, which could translate into faster project timelines and improved economics.
The transaction is expected to be accretive to Tamboran shareholders, with the implied acreage value reflecting a discount compared to Tamboran’s current valuation. Falcon shareholders will also benefit from increased exposure to the ongoing pilot development in the Beetaloo, removing uncertainty around future participation in major farmout processes.
Strategic Benefits
- Enhanced ownership in the Phase 2 Development Area, now at 80.62%
- Greater alignment with key partners across the entire EP 76, 98, and 117 acreage
- Access to over 40,000 gross drilling locations across the combined Beetaloo Basin position
Key Details
Under the terms of the agreement, Tamboran will acquire Falcon’s subsidiaries in exchange for a combination of cash and Tamboran common stock. Falcon shareholders are expected to own approximately 26.8% of the pro forma business following completion.
The transaction is structured as a plan of arrangement under British Columbia law and is subject to customary closing conditions, including shareholder and court approvals. No changes to Tamboran’s board or executive leadership are planned, with Dick Stoneburner remaining Chairman and Interim CEO.
The deal values Falcon’s subsidiaries at C$239 million, with an implied offer price that represents a significant premium over recent trading levels. Existing Falcon options will be cancelled as part of the transaction.
What Comes Next
With the deal on track for a Q1 2026 close, both companies are focused on meeting all regulatory and shareholder requirements. The combined entity will be well-positioned to advance its development plans, including the upcoming farmout process and the launch of gas sales to the Northern Territory Government, which is expected to begin in mid-2026.
As the integration unfolds, the industry will be watching closely to see how this new powerhouse leverages its expanded footprint to unlock the full potential of the Beetaloo Basin.
Forward Outlook
The merger marks a pivotal moment for the Australian energy sector, setting the stage for accelerated growth and innovation in unconventional gas. With regulatory approvals and shareholder votes on the horizon, the path is clear for a new chapter in Beetaloo Basin development.
