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
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
“Being the one true cloud-agnostic and storage-agnostic software solution, more and more customers are coming to Commvault and saying ' What do you recommend? What's your best practice for implementing cloud?” explained Randy De Meno, Chief Technologist at Commvault, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...