Falcon Oil & Gas Ltd (AIM: FOG, TSX-V: FO) shares rose after the company agreed a £128 million (C$239 million) takeover by exploration partner Tamboran Resources Corporation (ASX: TBN, NYSE: TBN, OTC: TBNRL). The deal is mostly in shares, with an additional US$23.7 million in cash.
The transaction follows Falcon’s self-funding of its Beetaloo Basin interests in Australia since mid-2024, after its earlier farm-out “carry” was exhausted. It also comes ahead of new farm-out and financing processes to fund the next phase of development.
Under the agreement, Falcon shareholders will own about 28% of the enlarged group. Each Falcon share will be exchanged for 0.00687 Tamboran shares, with the package valued at a 19.7% premium to Falcon’s last closing price.
Chief executive Philip O’Quigley said the deal increases exposure to the Beetaloo pilot development and removes uncertainty over Falcon’s participation in the next farm-out process. Tamboran interim CEO Richard Stoneburner described the tie-up as a “logical consolidation” that strengthens its ownership of the Phase 2 Development Area, positioning the group to attract a new partner while retaining a material stake.
In London trading, Falcon shares climbed 7% to 10.51p, valuing the company at just over £100 million. The stock has gained around 136% so far in 2025.
