Falcon Oil & Gas Ltd.: Full Year Results
April 28 2017 - 2:03AM
FALCON OIL & GAS LTD.
("Falcon" or the "Company" or the
"Group")
Full Year Results
28 April 2017 - Falcon Oil & Gas Ltd. (TSXV:
FO, AIM: FOG, ESM: FAC) is pleased to announce its financial
results for the year ended 31 December 2016.
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
three and twelve months ended 31 December 2016.
Highlights:
Operational
- Successfully completed the drilling of the Beetaloo W-1 well to
a total depth of 3,173 with very encouraging results.
- Hydraulic stimulation of the horizontal Amungee NW-1H well was
completed.
- In February 2017, the Group announced that Origin Energy
Resources ("Origin"), Falcon's 35% joint venture partner submitted
the Results of Evaluation of the Discovery and Preliminary Estimate
of Petroleum in Place for the Amungee NW-1H Velkerri B Shale Gas
Pool to the Northern Territory Government indicating a material gas
resource.
- Completion of the nine well exploration and appraisal programme
will be delayed pending the outcome of the independent scientific
inquiry on hydraulic fracturing.
- Processing of Falcon's exploration license application in South
Africa's Karoo Basin continues to progress and the South African
Department of Mineral Resources is expected to issue licences in
2017.
Financial
- Strong financial position, debt free with cash of US$10.1
million at 31 December 2016.
- Continued focus on strict cost management and efficient
operation of the portfolio.
- General & administrative expenses decreased 18% year on
year to US$2.0 million (31 December 2015: US$2.5 million).
Philip O'Quigley, CEO of Falcon Oil & Gas
commented:
"2016 was a landmark year for our Company with
the first extended production test in the Beetaloo basin and the
announcement of a material gas resource. Our 2017 drilling program
is delayed pending the outcome of the independent scientific
inquiry on hydraulic fracturing, however we are hopeful of a
favourable outcome and the resumption of drilling in the not too
distant future. "
Filing of Financial statements, MD&A, AIF
and Reserves data
Falcon has filed its audited financial
statements for the year ended 31 December 2016, the accompanying
MD&A for year ended 31 December 2016 dated 27 April 2017, its
Annual Information Form ("AIF") dated 27 April 2017 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.
Falcon Oil & Gas Ltd.Consolidated Statement of
Operations and Comprehensive Loss
|
|
|
Year Ended 31 December 2016 $'000 |
Year Ended 31 December 2015 $'000 |
| |
|
|
|
| Revenue |
|
|
|
|
Oil and natural gas revenue |
|
6 |
7 |
| |
|
6 |
7 |
| |
|
|
|
| Expenses |
|
|
|
| Exploration and evaluation
expenses |
|
(336) |
(679) |
| Production and operating
expenses |
|
(15) |
(20) |
| Depreciation |
|
(16) |
(39) |
| General and administrative
expenses |
|
(2,037) |
(2,491) |
| Share based
compensation |
|
(1,335) |
(256) |
| Foreign exchange loss |
|
(73) |
(143) |
|
|
|
(3,812) |
(3,628) |
| |
|
|
|
|
Other income |
|
- |
3,594 |
| |
|
(3,806) |
3,594 |
|
|
|
|
|
|
Results from operating activities |
|
(3,806) |
(27) |
| |
|
|
|
| Fair value gain -
outstanding warrants |
|
208 |
79 |
| |
|
|
|
| Finance income |
|
53 |
78 |
| Finance expense |
|
(145) |
(220) |
| Net
finance expense |
|
(92) |
(142) |
|
|
|
|
|
|
Loss before tax |
|
(3,690) |
(90) |
| |
|
|
|
| Taxation |
|
- |
(110) |
|
|
|
|
|
|
Loss and comprehensive loss for the year |
|
(3,690) |
(200) |
| |
|
|
|
| Loss and comprehensive
loss attributable to: |
|
|
|
| |
|
|
|
| Equity holders of the
company |
|
(3,687) |
(193) |
| Non-controlling
interests |
|
(3) |
(7) |
|
|
|
|
|
|
Loss and comprehensive loss for the year |
|
(3,690) |
(200) |
| |
| Loss per share
attributable to equity holders of the company: |
| |
|
|
|
|
Basic and diluted |
|
($0.004) |
($0.000) |
Falcon Oil & Gas Ltd.Consolidated Statement of
Financial Position
|
|
|
At 31 December 2016 $'000 |
At 31 December 2015 $'000 |
| |
|
|
|
| Assets |
|
|
|
| Non-current
assets |
|
|
|
| Exploration and evaluation
assets |
|
39,618 |
39,618 |
| Property, plant and
equipment |
|
7 |
64 |
| Trade and other
receivables |
|
34 |
22 |
|
Restricted cash |
|
2,151 |
2,239 |
|
|
|
41,810 |
41,943 |
| |
|
|
|
| Current assets |
|
|
|
| Cash and cash on
deposit |
|
10,127 |
12,683 |
|
Trade and other receivables |
|
190 |
268 |
|
|
|
10,317 |
12,951 |
|
|
|
|
|
|
Total assets |
|
52,127 |
54,894 |
| |
|
|
|
| Equity and
liabilities |
|
|
|
| |
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
| Share capital |
|
382,853 |
382,853 |
| Contributed surplus |
|
44,251 |
42,916 |
|
Retained deficit |
|
(386,229) |
(382,542) |
| |
|
40,875 |
43,227 |
|
Non-controlling interests |
|
703 |
706 |
|
Total equity |
|
41,578 |
43,933 |
| |
|
|
|
|
Liabilities |
|
|
|
| Non-current
liabilities |
|
|
|
|
Decommissioning provision |
|
9,690 |
9,565 |
|
|
|
9,690 |
9,565 |
| |
|
|
|
| Current
liabilities |
|
|
|
| Accounts payable and
accrued expenses |
|
632 |
961 |
| Derivative financial
liabilities |
|
227 |
435 |
|
|
|
859 |
1,396 |
|
Total liabilities |
|
10,549 |
10,961 |
|
|
|
|
|
|
Total equity and liabilities |
|
52,127 |
54,894 |
Falcon Oil & Gas Ltd.Consolidated Statement of
Cash flows
| |
Year Ended 31 December |
|
|
2016 $'000 |
2015 $'000 |
| |
|
|
| Cash flows from
operating activities |
|
|
| Net loss for the year |
(3,690) |
(200) |
| Adjustments for: |
|
|
| Share
based compensation |
1,335 |
256 |
|
Depreciation |
16 |
39 |
| Fair
value gain - outstanding warrants |
208 |
(79) |
| Net
finance expense |
92 |
142 |
|
Termination of farm-out transaction - NIS |
- |
(3,700) |
|
Other |
101 |
143 |
| Change in non-cash working
capital |
|
|
| Trade
and other receivables |
66 |
257 |
|
Accounts payable and accrued expenses |
(202) |
124 |
|
Restructuring spend |
- |
(444) |
|
Interest received |
53 |
78 |
| Net cash used in
operating activities |
(2,437) |
(3,384) |
| |
|
|
| Cash flows from
investing activities |
|
|
| Decrease / (increase) in
restricted cash |
22 |
(1,991) |
| Exploration and evaluation
assets |
(110) |
(110) |
| (Increase) / decrease in
cash deposits - other receivables |
(2,270) |
4,000 |
| Termination of farm-out
transaction - NIS |
- |
3,700 |
| Property, plant and
equipment |
(4) |
- |
|
Net cash (used in) / generated by investing activities |
(2,362) |
5,599 |
| |
|
|
| Change in cash and cash
equivalents |
(4,799) |
2,215 |
| Effect of exchange rates
on cash & cash equivalents |
(27) |
(285) |
| |
|
|
| Cash and cash equivalents
at beginning of year |
10,683 |
8,753 |
|
|
|
|
|
Cash and cash equivalents at end of year |
5,857 |
10,683 |
| CONTACT DETAILS: |
|
|
| Falcon Oil & Gas
Ltd. Philip O'Quigley, CEO Anne Flynn, CFO |
|
+353 1 676 8702 +353 87
814 7042 +353 1 676 9162 |
| Davy (NOMAD &
Broker)
John Frain / Anthony Farrell |
|
+353 1 679 6363 |
This announcement has been reviewed by Dr. Gábor
Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr.
Bada obtained his geology degree at the Eötvös L. University in
Budapest, Hungary and his PhD at the Vrije Aniversiteit Amsterdam,
the Netherlands. He is a member of AAPG and EAGE.
All dollar amounts in this document are in
United States dollars "$", 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 EnergyOrigin 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 |
|
AIM |
London
Stock Exchange's international
market for smaller growing companies |
| ASX |
Australian Securities Exchange |
| CSG |
Coal
seam gas |
| LNG |
Liquefied natural gas |
| MW |
Megawatt |
| TCF |
Trillion
cubic feet |
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.
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 awarding of an exploration license in South Africa, to the
type, number, schedule, 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 shale play
and the prospect of the exploration programme being brought to
commerciality. 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.
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