Full Year Results
28/04/2023 07:00
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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 202 2 $’000 Year Ended 31 December 2021 $’000
Revenue
Oil and natural gas revenue - 2
- 2
Expenses
Exploration and evaluation expenses (151) (196)
General and administrative expenses (2,865) (3,031)
Decommissioning provision (825) (991)
Foreign exchange loss (138) (238)
(3,979) (4,456)
Results from operating activities (3,979) (4,454)
Finance income 298 7
Finance expense (310) (249)
Net finance expense (12) (242)
Loss before tax (3,991) (4,696)
Taxation - -
Loss and comprehensive loss for the year (3,991) (4,696)
Loss and comprehensive loss attributable to:
Equity holders of the company (3,994) (4,693)
Non-controlling interests 3 (3)
Loss and comprehensive loss for the year (3,991) (4,696)
Loss per share attributable to equity holders of the company:
Basic and diluted ($ 0.00 4 ) ($0.005)
Consolidated Statement of Financial Position
At 31 December 20 2 2 $’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
20 2 2 $’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 CO(2) 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