Welcome!

News Feed Item

Falcon Oil & Gas Ltd-Interim Results for Six Months Ended 30 June 2014

DUBLIN, IRELAND -- (Marketwired) -- 08/29/14 -- Falcon Oil & Gas Ltd. (TSX VENTURE: FO)(AIM: FOG)(ESM: FAC) (the "Company" or the "Group") announces that it has filed its results for the three and six months ended 30 June 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 and six months period ended 30 June 2014 filed with the TSXV. These filings are available at www.sedar.com and www.falconoilandgas.com.

Highlights

--  Completion of the transformational Farm-Out Agreement and Joint
    Operating Agreements of the Beetaloo permits, Northern Territory,
    Australia.
--  Positive developments toward the processing of shale gas exploration
    rights in South Africa - expected awarding of exploration right in 2014.
--  Total depth of the second well in Hungary, fully carried by Naftna
    Industrija Srbije JSC ("NIS") reached and contract with NIS extended.
--  Continued focus on strict cost management and efficient operation of the
    portfolio.
--  The Group incurred a loss of US$2.4 million in the six months ended 30
    June 2014, decreasing from a loss of US$6.6 million in the six months
    ended 30 June 2013.
--  Strong financial position, debt free with cash and cash equivalents of
    US$5.5 million (31 December 2013: US$8.4 million). Subsequently, on
    closing of Beetaloo Farm-out, Falcon received A$20 million cash from the
    Farminees in August 2014.

Philip O'Quigley, CEO of Falcon commented:

"2014 has been a busy year thus far for the Group with the execution and completion of the Agreements with Origin and Sasol of our Beetaloo permits in the Northern Territory, Australia. Together with the A$20 million cash received, the deal is worth up to approximately A$200 million to Falcon. I look forward to updating the market and making further announcements on the Group's progress throughout the remainder of the year."

Australia

Farm-out of Beetaloo permits, Northern Territory, Australia

On 21 August 2014, Falcon completed its Farm-Out Agreement and Joint Operating Agreement with Origin and Sasol each farming into 35% of Falcon's exploration permits in the Beetaloo Basin, Australia.

The main transaction details are:

--  Falcon retains a 30% interest in the Permits.
--  Falcon has received A$20 million cash from the Farminees.
--  Origin is appointed as Operator.
--  Farminees to carry Falcon in a nine well exploration and appraisal
    program over the next four years, detailed as follows:
    --  3 vertical exploration/stratigraphic wells and core studies;
    --  1 hydraulic fracture stimulated vertical exploration well and core
        study;
    --  1 hydraulic fracture stimulated horizontal exploration well,
        commercial study and 3C resource assessment; and
    --  4 hydraulic fracture stimulated horizontal exploration/appraisal
        wells, micro-seismic and 90 day production tests.
--  Drilling/testing specifically targeted to take the project towards
    commerciality.
--  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
    drilling programme will commence by mid 2015.
--  Farminees to pay up to the full cost of the next four horizontally
    fracture stimulated wells, 90 day production tests and micro seismic
    with a capped expenditure up to A$101 million, any cost overrun funded
    by each Party in proportion to their working interest.
--  Farminees may reduce or surrender their interests back to Falcon only
    after:
    --  the drilling of the first five wells or
    --  the drilling and testing of the next two horizontally fracture
        stimulated wells.

Overriding Royalty Agreements

In addition at completion of Falcon's Beetaloo Farm-out, Falcon paid Malcolm John Gerrard, Territory Oil & Gas LLC and Tom Dugan Family Partnership LLC ("TOG Group") US$5 million to acquire 5%; and CR Innovations AG ("CRIAG") US$999,000 to acquire 3% of their respective Overriding Royalties over Falcon's Exploration Permits in the Beetaloo Basin. The Overriding Royalty is now at 4%. Falcon and the Farminees have the option to reduce this Royalty further to 1% by the exercise of two 5 year call options. The call options will be funded by Falcon and each of the Farminees in proportion to their interest in the permits.

South Africa

In May 2014, President Zuma and the ANC was returned to government and continued to highlight the importance of exploration efforts progressing. In addition, a cabinet reshuffle occurred where Mr. Ngoako Ramatlhodi was appointed as the new Minister for Mineral Resources.

The Mineral and Petroleum Resources Development Amendment ("MPRDA") Bill which was approved by the National Council of Provinces is now with the President for assent. Some of the proposed new terms had raised concern within the oil and gas industry. In Q2 2014, Mr. Ngoako Ramatlhodi requested the President delay the signature of the MPRDA Bill in order to give him time to investigate the matter. If the President has reservations regarding the constitutionality of the Bill he can refer it back to the National Assembly. In the event that this course of action is decided upon, the impugned provisions of the MPRDA Bill will be reconsidered by the National Assembly and the National Council of Provinces and may be modified.

The Board expects that the exploration right over the acreage will be awarded in 2014. As a reminder to shareholders and as announced in press release of 12 December 2012, the Group entered into an exclusive cooperation agreement with Chevron to jointly seek unconventional exploration opportunities in the Karoo Basin. The agreement provides for the Group to work exclusively with Chevron for a period of five years to jointly seek to obtain exploration rights in the Karoo Basin.

Hungary

Hungary Drilling Update - contract with NIS extended

As announced on 15 July 2014 initial drilling operations on the Besa-D-1 well have reached total depth ("TD") of 3,000 metres having encountered gas shows. Besa-D-1 is the second of a planned three well programme to evaluate the gas potential of the Algyo Formation in the Mako Trough License. The well has now been cased to TD and is suspended pending further technical evaluation in order to determine an appropriate testing programme later this year. No operational problems occurred during drilling.

In January 2013, the Group agreed a three-well drilling programme with Naftna industrija Srbije jsc ("NIS") to target the Algyo Play, whereby NIS made a cash payment of US$1.5 million to the Group in February 2013, and agreed to drill three wells by July 2014 at their cost. The July 2014 date for completion of drilling and testing of the NIS three well programme has been extended to 31 December 2014. This extension has been granted to allow NIS to:

--  Complete the testing of Besa-D-1;
--  Evaluate the hydrocarbon potential of the entire Mako Trough including
    the Deep Mako play; and
--  Fulfill the third well obligation of the NIS three-well drilling
    programme.

Results for operating activities

The Group incurred a loss of US$2.4 million in the six months ended 30 June 2014, decreasing from a loss of US$6.6 million in the six months ended 30 June 2013.

The Group's cash and cash equivalent balance at 30 June 2014 was US$5.5 million (31 December 2013: US$8.4 million). Subsequently, on closing of Beetaloo Farm-out, Falcon has received A$20 million cash from the Farminees.

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.

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. This information including comments made with respect to the type and number of wells and expected costs of the work program under the Farm-out, the project being brought towards commerciality and the award of an exploration license in South Africa 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        Three
                              months       months   Six months   Six months
                            ended 30     ended 30     ended 30     ended 30
                           June 2014    June 2013    June 2014    June 2013
                               $'000        $'000        $'000        $'000
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Revenue
Oil and natural gas
 revenue                           7            4           17            7
----------------------------------------------------------------------------
                                   7            4           17            7

Expenses
Exploration and
 evaluation expenses            (206)        (210)        (404)        (408)
Production and operating
 expenses                         (8)          (7)         (15)         (12)
Depreciation                     (30)         (62)         (73)        (207)
General and
 administrative expenses      (1,231)      (1,419)      (2,250)      (2,604)
Share based compensation         (12)        (178)        (207)        (273)
Foreign exchange loss            (22)           -          (55)           -
Other income                     162          102          299          339
----------------------------------------------------------------------------
                              (1,347)      (1,774)      (2,705)      (3,165)
----------------------------------------------------------------------------

Results from operating
 activities                   (1,340)      (1,770)      (2,688)      (3,158)

Fair value (loss) / gain
 - outstanding warrants         (768)         557          223       (1,324)

Finance income                    69          268          128          262
Finance expense                  (35)        (951)         (70)      (2,422)
----------------------------------------------------------------------------
Net finance income /
 (expense)                        34         (683)          58       (2,160)

----------------------------------------------------------------------------
Loss and comprehensive
 loss for the period          (2,074)      (1,896)      (2,407)      (6,642)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Loss and comprehensive
 loss attributable to:

Equity holders of the
 company                      (2,069)      (1,805)      (2,398)      (6,506)
Non-controlling
 interests                        (5)         (91)          (9)        (136)

----------------------------------------------------------------------------
Loss and comprehensive
 loss for the period          (2,074)      (1,896)      (2,407)      (6,642)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Loss per share attributable to
 equity holders of the company:

Basic and diluted        (0.002 cent) (0.002 cent) (0.003 cent) (0.009 cent)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statement of Financial Position
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                 At 30 June  At 31 December
                                                       2014            2013
                                                      $'000           $'000
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Assets
Non-current assets
Exploration and evaluation assets                    74,869          74,517
Property, plant and equipment                         5,336           5,403
Trade and other receivables                             107              77
Restricted cash                                         376             396
----------------------------------------------------------------------------
                                                     80,688          80,393
----------------------------------------------------------------------------

Current assets
Cash and cash equivalents                             5,513           8,431
Restricted cash                                         219             219
Trade and other receivables                             752             473
----------------------------------------------------------------------------
                                                      6,484           9,123

----------------------------------------------------------------------------
Total assets                                         87,172          89,516
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Equity and liabilities

Equity attributable to owners of the parent
Share capital                                       382,853         382,853
Contributed surplus                                  42,670          42,463
Retained deficit                                   (353,003)       (350,605)
----------------------------------------------------------------------------
                                                     72,520          74,711
Non-controlling interests                               728             737
----------------------------------------------------------------------------
Total equity                                         73,248          75,448
----------------------------------------------------------------------------

Liabilities
Non-current liabilities
Decommissioning provision                            11,192          11,138
----------------------------------------------------------------------------
                                                     11,192          11,138
----------------------------------------------------------------------------

Current liabilities
Accounts payable and accrued expenses                 1,558           1,533
Derivative financial liabilities                      1,174           1,397
----------------------------------------------------------------------------
                                                      2,732           2,930
----------------------------------------------------------------------------
Total liabilities                                    13,924          14,068

----------------------------------------------------------------------------
Total equity and liabilities                         87,172          89,516
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statement of Cash Flows
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                   Six months ended 30 June
                                                          2014         2013
                                                         $'000        $'000
----------------------------------------------------------------------------

Cash flows from operating activities
Net loss for the period                                 (2,407)      (6,642)
Adjustments for:
  Share based compensation                                 207          273
  Depreciation                                              73          207
  Fair value (gain) / loss - outstanding
   warrants                                               (223)       1,324
  Net finance (income) / expense                           (58)       2,160
  Other                                                     55            -
Contribution to past costs - Chevron                         -        1,000
Change in non-cash working capital                        (166)        (693)
Interest paid                                                -         (573)
Interest received                                           26           63
----------------------------------------------------------------------------
Net cash used in operating activities                   (2,493)      (2,881)

Cash flows from investing activities
Exploration and evaluation assets                         (538)        (560)
Proceeds from farm-out transaction - NIS                     -        1,500
Property, plant and equipment                               (6)         (26)
----------------------------------------------------------------------------
Net cash (used in) / generated by investing
 activities                                               (544)         914

Cash flows from financing activities
Proceeds from private placement                              -       25,672
Transaction costs relating to private placement              -       (1,897)
Repayment of 11% debenture                                   -      (10,197)
----------------------------------------------------------------------------
Net cash from financing activities                           -       13,578

Change in cash and cash equivalents                     (3,037)      11,611
Effect of exchange rates on cash & cash
 equivalents                                               119          218

Cash and cash equivalents at beginning of
 period                                                  8,431        2,884

----------------------------------------------------------------------------
Cash and cash equivalents at end of period               5,513       14,713
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
Falcon Oil & Gas Ltd.
+353 1 417 1900

Falcon Oil & Gas Ltd.
Philip O'Quigley, CEO
+353 87 814 7042

Falcon Oil & Gas Ltd.
Michael Gallagher, CFO
+353 1 417 0814

Falcon Oil & Gas Ltd.
John Craven, Non-Executive Chairman
+353 1 417 1900
www.falconoilandgas.com

CAMARCO
Billy Clegg
+44 20 3757 4983

CAMARCO
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 / Emily Morris
+44 20 7647 2800

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
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.