Welcome!

News Feed Item

Falcon Oil & Gas Ltd - Interim Results for Three Months Ended 31 March 2014

DUBLIN, IRELAND -- (Marketwired) -- 05/29/14 -- Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or the "Company") announces that it has filed its results for the three months ended 31 March 2014.

The following should be read in conjunction with the complete Interim Financial Statements and the accompanying Management's Discussion and Analysis for the three months period ended 31 March 2014 filed with the TSXV. These filings are available at www.sedar.com and on Falcon's website at www.falconoilandgas.com.

Highlights


--  Transformational Farm-Out Agreement and Joint Operating Agreements ("the
    Agreements") of Beetaloo permits, Northern Territory, Australia to carry
    Falcon in a nine well exploration and appraisal program over five years
    with Origin Energy Resources Limited, a subsidiary of Origin Energy
    Limited ("Origin") and Sasol Petroleum Australia Limited, a subsidiary
    of Sasol Limited ("Sasol"), "the Farminees". 
    --  Drilling to commence following completion of the Agreements. 
    --  Origin and Sasol to pay Falcon A$20 million cash on completion of
        the Agreements. 
    --  Origin and Sasol to each earn 35% interest in the Permits. 
    --  Falcon to retain a 30% interest in the Permits. 
    --  Origin to be the Operator. 
    --  Farminees will pay for the full cost of completing the first five
        wells estimated at A$64, million, and will fund any cost overruns.
        This work is expected to be completed within the first three years. 
    --  Farminees to pay the full cost of the following two horizontally
        fracture stimulated wells, 90 day production tests and micro seismic
        with a capped expenditure of A$53 million. 
    --  Farminees to pay the full cost of the final two horizontally
        fracture stimulated wells and 90 day production tests capped at A$48
        million. 
--  Spudding of the second well in Hungary, fully carried by Naftna
    Industrija Srbije JSC ("NIS"), 
--  Continued focus on strict cost management and efficient operation of the
    portfolio. 
--  Strong financial position, debt free with cash and cash equivalents at
    US$6.9 million (31 December 2013: US$8.4 million). 

Philip O'Quigley, CEO of Falcon commented:

"2014 has been a busy year for Falcon with the execution of the Agreements with Origin and Sasol of our Beetaloo permits in the Northern Territory Australia. Together with the A$20 million, the deal is worth up to approximately A$200 million to Falcon. I can confidently state that this carry and work programme is a great deal for our shareholders. In addition, we have spudded the second well in Hungary with our partner NIS. I look forward to updating the market and making further announcements on the Group's progress in due course."

Australia

Farm-out of Beetaloo permits, Northern Territory, Australia

As announced on 2 May 2014, Falcon Australia has executed definitive agreements including a 9 well Farm-Out Agreement and Joint Operating Agreements (collectively "the Agreements") with Origin and Sasol, to each farm into 35% of Falcon's Exploration Permits in the Beetaloo Basin, Australia. The Agreements are subject to conditions inter alia Government, statutory authority consents and relevant Stock Exchange approvals.

Hungary Drilling

Spudding of second well in Hungary

As announced on 16 May 2014, the second of three exploration wells "Besa-D-1", with our partner NIS to evaluate the gas potential of the Algyo Formation at a depth of approximately 3,000 meters in the Mako Trough, Hungary has been spudded. The well testing operations on the first well, Kutvolgy-1 are now completed. The testing indicated that well production did not meet commercial rates. Falcon, with our partner NIS, has discontinued testing Kutvolgy-1, the well is to be plugged and abandoned. Falcon and NIS are now focused on Besa-D-1.

Results for operating activities

Falcon incurred a loss of US$0.3 million in the three months ended 31 March 2014, decreasing from a loss of US$4.7 million in the three months ended 31 March 2013.

Falcon's cash and cash equivalent balance at 31 March 2014 was US$6.9 million (31 December 2013: US$8.4 million).

Appointment of Communication Adviser

Falcon has retained Camarco as its communication adviser to provide ongoing strategic and business advice with shareholders and investors. The initial fee is GBP 5,000 per month which will increase to GBP 6,000 after 3 months. Termination clauses are included in the contract, which are at both parties' discretion. Engagement with FTI Consulting, Falcon's previous communication adviser has now ended.

The appointment of Camarco is subject to TSXV approval.

About Falcon Oil & Gas Ltd.

Falcon is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South Africa and Hungary. Falcon is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

About Camarco

Camarco is a financial and corporate communications adviser with specialist sector knowledge, particularly in energy and resources, financial services, and the consumer industries.

For further information on Camarco please visit www.camarco.co.uk

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information, including comments made with respect to the type and number of wells and expected costs of the work program under the Farm-out and the project being brought towards commerciality. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian securities regulators, which filings are available at www.sedar.com.


Falcon Oil & Gas Ltd.                                                       
Interim Condensed Consolidated Statement of Operations and Comprehensive    
 Loss                                                                       
(Unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Three months ended  Three months ended 
                                          31 March 2014       31 March 2013 
                                                  $'000               $'000 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
Oil and natural gas revenue                          10                   3 
----------------------------------------------------------------------------
                                                     10                   3 
                                                                            
Expenses                                                                    
Exploration and evaluation expenses                (198)               (198)
Production and operating expenses                    (7)                 (5)
Depreciation                                        (43)               (145)
General and administrative expenses              (1,019)             (1,185)
Share based compensation                           (195)                (95)
Foreign exchange loss                               (33)                  - 
Other income                                        137                 237 
----------------------------------------------------------------------------
                                                 (1,358)             (1,391)
----------------------------------------------------------------------------
                                                                            
Results from operating activities                (1,348)             (1,388)
                                                                            
Fair value gain / (loss) -                                                  
 outstanding warrants                               991              (1,881)
                                                                            
Finance income                                       59                   8 
Finance expense                                     (35)             (1,485)
----------------------------------------------------------------------------
Net finance income \ (expense)                       24              (1,477)
                                                                            
----------------------------------------------------------------------------
Loss and comprehensive loss for the                                         
 period                                            (333)             (4,746)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss and comprehensive loss                                                 
 attributable to:                                                           
                                                                            
Equity holders of the company                      (329)             (4,701)
Non-controlling interests                            (4)                (45)
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Loss and comprehensive loss for the                                         
 period                                            (333)             (4,746)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss per share attributable to equity holders of the company:               
                                                                            
Basic and diluted                               ($0.000)            ($0.007)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Falcon Oil & Gas Ltd.                                                       
Interim Condensed Consolidated Statement of Financial Position              
(Unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                            At 31 March      At 31 December 
                                                   2014                2013 
                                                  $'000               $'000 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
Non-current assets                                                          
Exploration and evaluation assets                74,720              74,517 
Property, plant and equipment                     5,366               5,403 
Trade and other receivables                          78                  77 
Restricted cash                                     604                 615 
----------------------------------------------------------------------------
                                                 80,768              80,612 
----------------------------------------------------------------------------
                                                                            
Current assets                                                              
Cash and cash equivalents                         6,879               8,431 
Trade and other receivables                         742                 473 
----------------------------------------------------------------------------
                                                  7,621               8,904 
                                                                            
----------------------------------------------------------------------------
Total assets                                     88,389              89,516 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Equity and liabilities                                                      
                                                                            
Equity attributable to owners of the                                        
 parent                                                                     
Share capital                                   382,853             382,853 
Contributed surplus                              42,658              42,463 
Retained deficit                               (350,934)           (350,605)
----------------------------------------------------------------------------
                                                 74,577              74,711 
Non-controlling interests                           733                 737 
----------------------------------------------------------------------------
Total equity                                     75,310              75,448 
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
Non-current liabilities                                                     
Derivative financial liabilities                      -                 448 
Decommissioning provision                        11,155              11,138 
----------------------------------------------------------------------------
                                                 11,155              11,586 
----------------------------------------------------------------------------
                                                                            
Current liabilities                                                         
Accounts payable and accrued                                                
 expenses                                         1,518               1,533 
Derivative financial liabilities                    406                 949 
----------------------------------------------------------------------------
                                                  1,924               2,482 
----------------------------------------------------------------------------
Total liabilities                                13,079              14,068 
                                                                            
----------------------------------------------------------------------------
Total equity and liabilities                     88,389              89,516 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Falcon Oil & Gas Ltd.                                                       
Interim Condensed Consolidated Statement of Cash Flows                      
(Unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                Three months ended 31 March 
                                                   2014               2013  
                                                  $'000               $'000 
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities                                        
Net loss for the period                            (333)             (4,746)
Adjustments for:                                                            
  Share based compensation                          195                  95 
  Depreciation                                       43                 145 
  Fair value (gain) / loss -                                                
   outstanding warrants                            (991)              1,881 
  Net finance (income) / expense                    (24)              1,477 
  Other                                              33                (126)
Contribution to past costs - Chevron                  -               1,000 
Change in non-cash working capital                 (161)               (168)
Interest received                                    17                   6 
----------------------------------------------------------------------------
Net cash used in operating                                                  
 activities                                      (1,221)               (436)
                                                                            
Cash flows from investing activities                                        
Exploration and evaluation assets                  (373)                  - 
Proceeds from farm-out transaction -                                        
 NIS                                                  -               1,500 
Property, plant and equipment                        (8)                  - 
----------------------------------------------------------------------------
Net cash (used in) / generated by                                           
 investing activities                              (381)              1,500 
                                                                            
Cash flows from financing activities                                        
Proceeds from private placement                       -              25,072 
Transaction costs relating to                                               
 private placement                                    -              (1,762)
----------------------------------------------------------------------------
Net cash from financing activities                    -              23,310 
                                                                            
Change in cash and cash equivalents              (1,602)             24,374 
Effect of exchange rates on cash &                                          
 cash equivalents                                    50                (151)
                                                                            
Cash and cash equivalents at                                                
 beginning of period                              8,431               2,884 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents at end of                                         
 period                                           6,879              27,107 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
Falcon Oil & Gas Ltd. +353 1 417 1900
Philip O'Quigley, CEO +353 87 814 7042
John Craven Non-Executive Chairman +353 1 417 1900

Camarco
Billy Clegg +44 20 3757 4983
Georgia Mann +44 20 3757 4980

Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell +353 1 679 6363

GMP Securities Europe LLP (Joint Broker)
Rob Collins / Liz Williamson +44 20 7647 2800

Cantor Fitzgerald Europe (Joint Broker)
David Porter / Richard Redmayne +44 207 894 7000

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...