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
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
"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.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
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...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...