Falcon Oil & Gas Ltd. - Full Year Results
FALCON OIL & GAS LTD.
(“Falcon”)
Full Year Results
28 April 2023 - Falcon Oil & Gas Ltd. (TSXV:
FO, AIM: FOG) is pleased to announce its financial results for the
year ended 31 December 2022.
The following should be read in conjunction with
the complete audited financial statements and the accompanying
Management’s Discussion and Analysis
(‘’MD&A’’) for the year ended 31 December
2022.
2022 Financial Highlights
- Strong financial position, debt
free with cash of US$16.8 million at 31 December 2022 (31 December
2021: US$8.9 million).
- Continued focus on strict cost
management and efficient operation of the portfolio.
Filing of Financial Statements,
MD&A, AIF and Reserves Data
Falcon has filed its audited financial
statements for the year ended 31 December 2022, the accompanying
MD&A for year ended 31 December 2022 dated 27 April 2023, its
Annual Information Form (“AIF”) dated 27 April
2023 and the Statement of Reserves Data and Other Oil and Gas
Information (National Instrument 51-101, Forms 51-101F1, 51-101F2
and 51-101F3) with the relevant provincial securities regulators.
These filings are available for review on the Canadian System for
Electronic Document Analysis and Retrieval
(“SEDAR”) at www.sedar.com. The audited financial
statements, MD&A and AIF are also available on Falcon’s website
www.falconoilandgas.com.
Beetaloo Operational
Update - Amungee NW-2H (“A2H”)
well
- Following the successful completion
of a 25-stage stimulation programme at the A2H well announced on 22
March 2023, and after an initial period of stimulation fluid flow
back, Falcon Oil & Gas Australia Limited’s joint venture
partner, Tamboran B2 Pty Limited, contracted Silver City Drilling
to undertake completion operations at A2H. Operations to install
production tubing were completed in late-April and the well was
re-opened in preparation to commence flow testing.
- 30-day initial production (IP30)
rates are expected during the second quarter of 2023.
- Drilling locations for the forward
program are expected to be announced following the release of the
A2H well IP30 flow results, subject to joint venture approval.
CONTACT DETAILS:
Falcon Oil & Gas Ltd.
|
+353 1 676 8702 |
Philip O'Quigley, CEO |
+353 87 814 7042 |
Anne Flynn, CFO |
+353 1 676 9162 |
|
Cenkos Securities plc (NOMAD & Broker) |
|
Neil McDonald / Derrick Lee |
+44 131 220 9771 |
|
|
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 Universiteit Amsterdam,
the Netherlands. He is a member of AAPG.
Consolidated Statement of Operations and Comprehensive
Loss
|
|
|
Year Ended 31 December
2022$’000 |
Year Ended 31 December 2021$’000 |
|
|
|
|
|
Revenue |
|
|
|
|
Oil and natural gas revenue |
|
|
- |
2 |
|
|
|
- |
2 |
|
|
|
|
|
Expenses |
|
|
|
|
Exploration and
evaluation expenses |
|
|
(151) |
(196) |
General and
administrative expenses |
|
|
(2,865) |
(3,031) |
Decommissioning
provision |
|
|
(825) |
(991) |
Foreign exchange
loss |
|
|
(138) |
(238) |
|
|
|
(3,979) |
(4,456) |
|
|
|
|
|
Results
from operating activities |
|
|
(3,979) |
(4,454) |
|
|
|
|
|
Finance
income |
|
|
298 |
7 |
Finance expense |
|
|
(310) |
(249) |
Net finance expense |
|
|
(12) |
(242) |
|
|
|
|
|
Loss before tax |
|
|
(3,991) |
(4,696) |
|
|
|
|
|
Taxation |
|
|
- |
- |
|
|
|
|
|
Loss and comprehensive loss for the
year |
|
|
(3,991) |
(4,696) |
|
|
|
|
|
Loss and
comprehensive loss attributable to: |
|
|
|
|
|
|
|
|
|
Equity holders of
the company |
|
|
(3,994) |
(4,693) |
Non-controlling
interests |
|
|
3 |
(3) |
|
|
|
|
|
Loss and comprehensive loss for
the year |
|
|
(3,991) |
(4,696) |
|
|
|
|
|
Loss per share attributable to equity holders of the company: |
|
|
|
|
Basic and diluted |
|
|
($0.004) |
($0.005) |
Consolidated Statement of Financial
Position
|
|
At 31
December2022$’000 |
At 31 December 2021$’000 |
|
|
|
|
Assets |
|
|
|
Non-current
assets |
|
|
|
Exploration and
evaluation assets |
|
42,977 |
40,197 |
Property, plant and
equipment |
|
7 |
13 |
Trade and other
receivables |
|
20 |
22 |
Restricted cash |
|
2,090 |
2,239 |
|
|
45,094 |
42,471 |
|
|
|
|
Current
assets |
|
|
|
Cash and cash
equivalents |
|
16,785 |
8,894 |
Trade and other receivables |
|
79 |
74 |
|
|
16,864 |
8,968 |
|
|
|
|
Total assets |
|
61,958 |
51,439 |
|
|
|
|
Equity and
liabilities |
|
|
|
|
|
|
|
Equity attributable to owners of the
parent |
|
|
|
Share capital |
|
402,120 |
392,170 |
Contributed
surplus |
|
47,063 |
46,254 |
Deficit |
|
(403,860) |
(399,866) |
|
|
45,323 |
38,558 |
Non-controlling interests |
|
701 |
698 |
Total equity |
|
46,024 |
39,256 |
|
|
|
|
Liabilities |
|
|
|
Non-current
liabilities |
|
|
|
Decommissioning provision |
|
15,602 |
11,775 |
|
|
15,602 |
11,775 |
|
|
|
|
Current
liabilities |
|
|
|
Accounts payable and accrued expenses |
|
332 |
408 |
|
|
332 |
408 |
|
|
|
|
Total liabilities |
|
15,934 |
12,183 |
|
|
|
|
Total equity and liabilities |
|
61,958 |
51,439 |
Consolidated Statement of Cash Flows
|
|
Year Ended 31 December |
|
|
2022$’000 |
2021 $’000 |
|
|
|
|
Cash flows
from operating activities |
|
|
|
Net loss for the
year |
|
(3,991) |
(4,696) |
Adjustments
for: |
|
|
|
Share based
compensation |
|
809 |
1,179 |
Depreciation |
|
5 |
4 |
Net finance
loss |
|
22 |
242 |
Foreign exchange
loss |
|
138 |
238 |
Transfer of Canadian
working interests |
|
- |
(28) |
Decommissioning
provision |
|
825 |
991 |
Change in non-cash
working capital |
|
|
|
(Increase) /
decrease in trade and other receivables |
|
(5) |
44 |
(Decrease) /
increase in accounts payable and accrued expenses |
|
(64) |
67 |
Net cash used in operating activities |
|
(2,261) |
(1,959) |
|
|
|
|
Cash flows
from investing activities |
|
|
|
Interest
received |
|
33 |
7 |
Exploration and
evaluation assets additions |
|
(88) |
(163) |
Granting of ORRI to
Sheffield Holdings LP |
|
6,000 |
- |
Exercising of TOG
Group call option |
|
(6,000) |
- |
Property plant and
equipment |
|
- |
(13) |
Net cash used in investing activities |
|
(55) |
(169) |
|
|
|
|
Cash flows
from financing activities |
|
|
|
Proceeds from
private placement |
|
10,000 |
- |
Costs related to private placement |
|
(50) |
- |
Net cash generated from financing activities |
|
9,950 |
- |
|
|
|
|
Change in cash and
cash equivalents |
|
7,634 |
(2,128) |
Effect of exchange
rates on cash and cash equivalents |
|
257 |
(14) |
Cash and cash
equivalents at beginning of year |
|
8,894 |
11,036 |
|
|
|
|
Cash and cash equivalents at end of year |
|
16,785 |
8,894 |
All dollar amounts in this document are in
United States dollars “$”, except as otherwise indicated.
About Falcon Oil & Gas
Ltd.
Falcon Oil & Gas Ltd is an international oil
& gas company engaged in the exploration and development of
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.
Falcon Oil & Gas Australia Limited is a c.
98% subsidiary of Falcon Oil & Gas Ltd.
For further information on Falcon Oil & Gas
Ltd. please visit www.falconoilandgas.com
About Tamboran
B2 Pty Limited
Tamboran (B1) Pty Limited (“Tamboran B1") is the
100% holder of Tamboran B2 Pty Limited, with Tamboran B1 being a
50:50 joint venture between Tamboran Resources Limited and Daly
Waters Energy, LP (Sheffield).
Tamboran Resources Limited, is a natural gas
company listed on the ASX (TBN) and U.S. OTC markets (TBNNY).
Tamboran is focused on playing a constructive role in the global
energy transition towards a lower carbon future, by developing the
significant low CO2 gas resource within the Beetaloo Basin through
cutting-edge drilling and completion design technology as well as
management’s experience that in successfully commercialising
unconventional shale in North America.
Bryan Sheffield of Daly Waters Energy, LP is a
highly successful investor and has made significant returns in the
US unconventional energy sector in the past. He was Founder of
Parsley Energy Inc. (“PE”), an independent
unconventional oil and gas producer in the Permian Basin, Texas and
previously served as its Chairman and CEO. PE was acquired for over
US$7 billion by Pioneer Natural Resources Company
(“Pioneer”), itself a leading independent oil and
gas company and with the PE acquisition became a Permian pure play
company. Pioneer has a current market capitalisation of c. US$60
billion.
Advisory regarding forward looking
statements
Certain information in this press release may
constitute forward-looking information. Any statements that are
contained in this news release that are not statements of
historical fact may be deemed to be forward-looking information.
Forward-looking information typically contains statements with
words such as “may”, “will”, “should”, “expect”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “projects”, “dependent”,
“potential”, “scheduled”, “forecast”, “outlook”, “budget”, “hope”,
“suggest”, “support” “planned”, “approximately”, “potential” or the
negative of those terms or similar words suggesting future
outcomes. In particular, forward-looking information in this press
release includes, but is not limited to, information relating to
the progress to date at A2H, the installation of production tubing,
commencement of flow testing and the 30-day initial production
(IP30) rates during the second quarter of 2023 along with the
forward programme expected to be announced following the A2H well
IP30 flow results, the prospectivity of the Amungee Member/Middle
Velkerri play and the prospect of the exploration programme being
brought to commerciality and a pilot production in 2023/2024. This
information is based on current expectations that are subject to
significant risks and uncertainties that are difficult to predict.
The risks, assumptions and other factors that could influence
actual results include risks associated with fluctuations in market
prices for shale gas; risks related to the exploration, development
and production of shale gas reserves; general economic, market and
business conditions; substantial capital requirements;
uncertainties inherent in estimating quantities of reserves and
resources; extent of, and cost of compliance with, government laws
and regulations and the effect of changes in such laws and
regulations; the need to obtain regulatory approvals before
development commences; environmental risks and hazards and the cost
of compliance with environmental regulations; aboriginal claims;
inherent risks and hazards with operations such as mechanical or
pipe failure, cratering and other dangerous conditions; potential
cost overruns, drilling wells is speculative, often involving
significant costs that may be more than estimated and may not
result in any discoveries; variations in foreign exchange rates;
competition for capital, equipment, new leases, pipeline capacity
and skilled personnel; the failure of the holder of licenses,
leases and permits to meet requirements of such; changes in royalty
regimes; failure to accurately estimate abandonment and reclamation
costs; inaccurate estimates and assumptions by management and their
joint venture partners; effectiveness of internal controls; the
potential lack of available drilling equipment; failure to obtain
or keep key personnel; title deficiencies; geo-political risks; and
risk of litigation.
Readers are cautioned that the foregoing list of
important factors is not exhaustive and that these factors and
risks 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, including under "Risk Factors" in the Annual
Information Form.
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.
Falcon Oil & Gas (LSE:FOG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Falcon Oil & Gas (LSE:FOG)
Historical Stock Chart
From Jul 2023 to Jul 2024