Australia's Tamboran to buy Falcon Oil & Gas for $172 million

Tamboran Resources

30/09/2025 09:22

Sept 30 (Reuters) - Australian natural gas producer Tamboran Resources TBN.AX has inked an agreement to acquire Irish oil and gas firm Falcon Oil & Gas FO.V in a cash-plus-stock deal valued at C$239 million ($171.81 million), the two companies said on Tuesday.

The deal aims to bolster Tamboran's foothold in the Beetaloo basin in Australia's Northern Territory, an area known for its vast natural gas potential and underscores growing interest in its untapped resources, with exploration activities expected to accelerate in the coming years.

The firm would consolidate its presence in the region by creating a 2.9 million acre business in the basin, through the deal.

Under the agreement, Tamboran will take over all of Falcon's subsidiaries by issuing 6.5 million shares of its U.S.-listed stock alongside a cash payment of $23.7 million. The deal values Falcon's subsidiaries at an implied offer price of C$0.2154 apiece, a 19.7% premium to Falcon's last close.

"Upon closing of the transaction, Falcon shareholders will benefit from the increased exposure to the critically important pilot development currently underway in the Beetaloo," Falcon CEO Philip O'Quigley said.

The boards of both companies have unanimously supported the deal, which is expected to close in the first quarter of 2026, subject to shareholder and regulatory approvals.

On completion, Falcon shareholders would own around 26.8% of the business with Tamboran owning the remaining 73.2%.

($1 = 1.3911 Canadian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Rajasik.Mukherjee@thomonreuters.com))