TIDMFOG
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 Year Ended
31 December 31 December
2022 2021
$'000 $'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 December At 31 December
2022 2021
$'000 $'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 2021
$'000 $'000
Cash flows from operating activities
Net loss for the year (3,991) (4,696)
Adjustments for:
Share based compensation 809 1,179
Depreciation 5 4
Net finance loss 22 242
Foreign exchange loss 138 238
Transfer of Canadian working interests - (28)
Decommissioning provision 825 991
Change in non-cash working capital
(Increase) / decrease in trade and other
receivables (5) 44
(Decrease) / increase in accounts payable
and accrued expenses (64) 67
Net cash used in operating activities (2,261) (1,959)
Cash flows from investing activities
Interest received 33 7
Exploration and evaluation assets additions (88) (163)
Granting of ORRI to Sheffield Holdings
LP 6,000 -
Exercising of TOG Group call option (6,000) -
Property plant and equipment - (13)
Net cash used in investing activities (55) (169)
Cash flows from financing activities
Proceeds from private placement 10,000 -
Costs related to private placement (50) -
Net cash generated from financing activities 9,950 -
Change in cash and cash equivalents 7,634 (2,128)
Effect of exchange rates on cash and
cash equivalents 257 (14)
Cash and cash equivalents at beginning
of year 8,894 11,036
Cash and cash equivalents at end of
year 16,785 8,894
---------------------------------------------- ----------- -----------
All dollar amounts in this document are in United States dollars
"$", 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.
(END) Dow Jones Newswires
April 28, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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