Natural gas company Tamboran Resources has agreed to buy Falcon Oil & Gas in a deal that will create one of the largest acreage holders in Australia’s Beetaloo basin, with roughly 2.9 million net prospective acres.

The transaction will see Tamboran take ownership of all Falcon subsidiaries in return for 6.5 million shares of its common stock and $23.7m in cash.

The deal values Falcon at around $172m (€146.33m).

It would result in Falcon’s investors holding a 26.8% stake in the combined entity, with Tamboran shareholders having the other 73.2%.

Both companies’ boards have unanimously given the green light to the deal, which is set to close in the first quarter of 2026.

Completion of the deal is subject to shareholder approval.

This deal extends Tamboran’s footprint in the Beetaloo depocentre, or sub-basin, and its working interest in the phase two development area to 80.62%.

For this area, Tamboran is currently undertaking a farmout process with RBC Capital Markets.

This is aimed at enabling Tamboran to identify a new development partner for a larger portion while maintaining a material working interest.

Falcon Oil & Gas CEO Philip O'Quigley said: “Upon closing of the transaction, Falcon shareholders will benefit from the increased exposure to the critically important pilot development currently under way in the Beetaloo.”

O’Quigley added that the agreement eliminates any uncertainty regarding Falcon's involvement in the phase two farmout and also provides shareholders with direct access to Tamboran's ongoing pilot development activities in the Beetaloo.

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

Upon deal completion, Tamboran would control roughly 2.9 million net prospective acres, including non‑operating stakes in blocks held by Daly Waters Energy.

In November 2024, Falcon announced the spudding of the Shenandoah S2‑4H (SS4H) well in the Beetaloo sub‑basin in the Northern Territory of Australia.