Tamboran Group is set to significantly strengthen its position in Australia's Beetaloo basin through the acquisition of Falcon Oil & Gas Australia. Shareholders of Falcon Oil & Gas Australia have approved the sale of the company's 98.1% interest to Tamboran.

Transaction Details and Strategic Consolidation

This acquisition is part of a broader transaction where Tamboran Group will acquire all subsidiary companies of Falcon. The deal involves Tamboran paying 6.5 million shares of its NYSE common stock and a cash consideration of US$23.7 million. The companies describe the combination as a logical consolidation that will create a company with a pro forma market capitalisation of US$500 million. The transaction covers 2.9 million net prospective acres across the majority of the Beetaloo depocentre, a very promising shale gas play.

Acquisition Process and Next Steps

The approval by Falcon Australia shareholders meets a key condition for the broader transaction, which remains subject to other regulatory and shareholder approvals and is on track to close in the first quarter of this year. Falcon noted that it and its associates were excluded from voting on the resolutions. The acquisition will give Tamboran the option to compulsorily acquire all remaining shares in Falcon Australia held by minority shareholders, at a price no less than what is being paid to Falcon.

Tamboran's Expansion in the Beetaloo Basin

This marks the third major acquisition for Tamboran, following its purchase of Sweetpea Petroleum in 2020 and Origin Energy’s extensive interests in 2022, which formed the core of its business. The move will cement Tamboran's dominant acreage position in the Beetaloo basin, alongside other key players like Santos and Beetaloo Energy.