Falcon Oil & Gas Ltd - Interim Results for Three Months Ended 31 March 2014
29 Maio 2014 - 3:00AM
Marketwired Canada
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)
----------------------------------------------------------------------------
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Three months ended Three months ended
31 March 2014 31 March 2013
$'000 $'000
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Revenue
Oil and natural gas revenue 10 3
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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
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(1,358) (1,391)
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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)
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Net finance income (expense) 24 (1,477)
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Loss and comprehensive loss for the
period (333) (4,746)
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Loss and comprehensive loss
attributable to:
Equity holders of the company (329) (4,701)
Non-controlling interests (4) (45)
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Loss and comprehensive loss for the
period (333) (4,746)
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Loss per share attributable to equity holders of the company:
Basic and diluted ($0.000) ($0.007)
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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
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80,768 80,612
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Current assets
Cash and cash equivalents 6,879 8,431
Trade and other receivables 742 473
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7,621 8,904
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Total assets 88,389 89,516
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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)
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74,577 74,711
Non-controlling interests 733 737
----------------------------------------------------------------------------
Total equity 75,310 75,448
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Liabilities
Non-current liabilities
Derivative financial liabilities - 448
Decommissioning provision 11,155 11,138
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11,155 11,586
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Current liabilities
Accounts payable and accrued
expenses 1,518 1,533
Derivative financial liabilities 406 949
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1,924 2,482
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Total liabilities 13,079 14,068
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Total equity and liabilities 88,389 89,516
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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
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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) -
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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)
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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
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Cash and cash equivalents at end of
period 6,879 27,107
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FOR FURTHER INFORMATION PLEASE CONTACT:
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
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