Falcon Oil & Gas Ltd.
TSX VENTURE : FO
AIM : FOG
ISE : FAC

Falcon Oil & Gas Ltd.

November 28, 2016 02:00 ET

Falcon Oil & Gas Ltd.: Filing of Interim Financial Statements

DUBLIN, IRELAND--(Marketwired - Nov. 28, 2016) - Falcon Oil & Gas Ltd. (AIM:FOG)(ESM:FAC)(TSX VENTURE:FO) announces that it has filed its Interim Financial Statements for the three and nine months ended 30 September 2016 and the accompanying Management's Discussion and Analysis ("MD&A").

The following should be read in conjunction with the complete unaudited unreviewed Interim Financial Statements and the accompanying MD&A for the three and nine months ended 30 September 2016, which are available on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on Falcon's website at www.falconoilandgas.com.

2016 Operational Highlights

Australia

  • The Notification of Discovery issued by Origin Energy Resources Limited ("Origin") in October 2016 is an exciting development and we look forward to updating the market when the resource evaluation is concluded.
  • The introduction of a moratorium on hydraulic fracturing will delay the completion of the nine well drilling programme. Origin intends meeting with the Department of Primary Industry and Resources of the Northern Territory, Australia soon to agree a revised timetable due to the delays the moratorium will have on the drilling and exploration programme. We will update the market once a revised timetable has been agreed.

South Africa

  • Processing of Falcon's exploration license application in South Africa's Karoo Basin continues and the South African Department of Mineral Resources is expected to issue licences in 2017.

2016 Financial Highlights

  • Strong financial position, debt free with cash of US$10.6 million at 30 September 2016 (31 December 2015: US$12.7 million).
  • Continued focus on strict cost management and efficient operation of the portfolio.
  • General and administrative expenses decreased 13% period on period to US$1.6 million (2015: US$1.8 million).

Holdings in Company

Falcon has been informed Renova Asset Holding Ltd., a subsidiary of Renova Holding Ltd. ("Renova Holding") acquired beneficial ownership of 6,273,500 common shares ("Shares") of Falcon at US$0.0904, representing approximately 0.68% of Falcon's issued and outstanding Shares.

Following the acquisition, Renova Holding has a beneficial ownership over an aggregate of 157,083,634 Shares, representing approximately 17.05% of Falcon's issued and outstanding Shares.

Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statement of Operations and Comprehensive Loss
(Unaudited)
Three months ended
30
September 2016
$'000
Three months ended
30
September 2015
$'000
Nine months ended
30
September 2016
$'000
Nine months ended
30
September 2015
$'000
Revenue
Oil and natural gas revenue 3 2 4 6
3 2 4 6
Expenses
Exploration and evaluation expenses (77 ) (141 ) (265 ) (593 )
Production and operating expenses (4 ) (4 ) (12 ) (15 )
Depreciation (1 ) (8 ) (12 ) (26 )
General and administrative expenses (440 ) (565 ) (1,584 ) (1,830 )
Share based compensation (222 ) (28 ) (1,252 ) (228 )
Foreign exchange gain 10 30 28 755
Other Income 2 1 2 1
(732 ) (715 ) (3,095 ) (1,936 )
Results from operating activities (729 ) (713 ) (3,091 ) (1,930 )
Fair value gain - outstanding warrant 169 291 231 22
Finance income 6 68 33 75
Finance expense (31 ) (38 ) (93 ) (172 )
Net finance (expense) / income (25 ) 30 (60 ) (97 )
Loss and comprehensive loss for the period (585 ) (392 ) (2,920 ) (2,005 )
Loss and comprehensive loss attributable to:
Equity holders of the company (586 ) (390 ) (2,918 ) (2,000 )
Non-controlling interests 1 (2 ) (2 ) (5 )
Loss and comprehensive loss for the period (585 ) (392 ) (2,920 ) (2,005 )
Loss per share attributable to equity
holders of the company:
Basic and diluted (0.001 cent ) (0.000 cent ) (0.003 cent ) (0.002 cent )
Falcon Oil & Gas Ltd.
Consolidated Statement of Financial Position
(Unaudited)
At 30 September
2016
$'000
At 31 December
2015
$'000
Assets
Non-current assets
Exploration and evaluation assets 39,618 39,618
Property, plant and equipment 10 64
Trade and other receivables 27 22
Restricted cash 2,296 2,239
41,951 41,943
Current assets
Cash and cash on deposit 10,602 12,683
Trade and other receivables 210 268
10,812 12,951
Total assets 52,763 54,894
Equity and liabilities
Equity attributable to owners of the parent
Share capital 382,853 382,853
Contributed surplus 44,168 42,916
Retained deficit (385,460 ) (382,542 )
41,561 43,227
Non-controlling interests 704 706
Total equity 42,265 43,933
Liabilities
Non-current liabilities
Decommissioning provision 9,660 9,565
9,660 9,565
Current liabilities
Accounts payable and accrued expenses 634 961
Derivative financial liabilities 204 435
838 1,396
Total liabilities 10,498 10,961
Total equity and liabilities 52,763 54,894
Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statement of Cash flows
(Unaudited)
Nine months ended 30 September
2016
$'000
2015
$'000
Cash flows from operating activities
Net loss for the period (2,920 ) (2,005 )
Adjustments for:
Share based compensation 1,252 228
Depreciation 12 26
Fair value gain - outstanding warrant (231 ) (22 )
Net finance expense 60 97
Effect of exchange rates on operating activities (28 ) (755 )
Change in non-cash working capital:
Trade and other receivables 53 182
Accounts payable and accrued expenses (206 ) 68
Restructuring spend - (439 )
Interest received 31 75
Net cash used in operating activities (1,977 ) (2,545 )
Cash flows from investing activities
Increase in cash deposits - other receivables (1,701 ) -
Increase in restricted cash - (1,991 )
Exploration and evaluation assets (110 ) (110 )
Net cash used in investing activities (1,811 ) (2,101 )
Change in cash and cash equivalents (3,788 ) (4,646 )
Effect of exchange rates on cash & cash equivalents 6 (265 )
Cash and cash equivalents at beginning of period 10,683 8,753
Cash and cash equivalents at end of period 6,901 3,842

Cash and cash on deposit

Cash and cash equivalents includes cash on hand, deposits held on call with banks, other short term highly liquid investments with initial maturities of three months or less at inception and bank overdrafts where a legal right of offset exists. Cash on deposit represents cash on deposit with a maturity in excess of three months.

30 September
2016
31 December
2015
$'000 $'000
Cash and cash equivalents 6,901 10,683
Cash on deposit 3,701 2,000
10,602 12,683

This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology degree at the Eötvös L. University in Budapest, Hungary and his PhD at the Vrije Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.

All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd 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 focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd 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 Origin Energy

Origin Energy (ASX:ORG) is the leading Australian integrated energy company with market leading positions in energy retailing (approximately 4.3 million customers), power generation (approximately 6,000 MW of capacity owned and contracted) and natural gas production (1,093 PJ of 2P reserves and annual production of 82 PJe). To match its leadership in the supply of green energy, Origin also aspires to be the number one renewables company in Australia.

Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing Australia's biggest CSG to LNG project based on the country's largest 2P CSG reserves base.

www.originenergy.com.au

Glossary of terms
CSG Coal seam gas
LNG Liquefied natural gas
MW Megawatt

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 is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Such information may include, but is not limited to comments made with respect to the type, number, schedule, stimulating, testing and objectives of the wells to be drilled in the Beetaloo basin Australia, expected contributions of the partners, the prospectivity of the Middle Velkerri & Kyalla shale plays, the prospect of the exploration programme being brought to commerciality and the awarding of an exploration license in South Africa. 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.

Contact Information

  • Falcon Oil & Gas Ltd.
    Philip O'Quigley, CEO
    +353 1 676 8702
    +353 87 814 7042

    Falcon Oil & Gas Ltd.
    Anne Flynn, CFO
    +353 1 676 9162

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