FALCON OIL & GAS LTD.
(“Falcon”)
Filing of Interim Financial Statements
28 August 2020 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) announces that it has filed its Interim Financial Statements for the three and six months ended 30 June 2020 and the accompanying Management’s Discussion and Analysis (“MD&A”).
The following should be read in conjunction with the complete unaudited unreviewed Interim Financial Statements and the accompanying MD&A for the three and six months ended 30 June 2020, which are available on the Canadian System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and on Falcon’s website at www.falconoilandgas.com.
2020 financial highlights and other financial updates
- Strong financial position, debt free with cash of US$11.8 million at 30 June 2020 (31 December 2019: US$13.1 million).
- Continued focus on cost management and the efficient operation of the portfolio.
- On 7 July 2020 Falcon Australia agreed to a further extension of the call option up to and including 30 April 2022 (“AdditionalExtension”), to acquire it’s 22.5% portion of the 2% ORRI from the TOG Group. Following confirmation of registration of the Additional Extension from the Northern Territory government Falcon Australia will pay US$150,000 to the TOG Group for granting the Additional Extension, with the cost of exercising the call option increasing from US$5.625 million to US$6 million.
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 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS)
(Unaudited)
|
|
Three months ended 30
June 2020
$’000 |
Three months ended 30
June 2019
$’000 |
Six months ended 30
June 2020
$’000 |
Six months ended 30
June 2019
$’000 |
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
|
|
| Oil and natural gas revenue |
|
1 |
1 |
2 |
3 |
|
|
|
1 |
1 |
2 |
3 |
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
| Exploration and evaluation expenses |
|
(35) |
(108) |
(73) |
(149) |
|
| Production and operating expenses |
|
(3) |
(3) |
(5) |
(6) |
|
| General and administrative expenses |
|
(597) |
(443) |
(1,000) |
(902) |
|
| Share based compensation |
|
- |
- |
- |
(12) |
|
| Foreign exchange gain / (loss) |
|
17 |
24 |
(11) |
(27) |
|
|
|
(618) |
(530) |
(1,089) |
(1,096) |
|
|
|
|
|
|
|
|
| Results from operating activities |
|
(617) |
(529) |
(1,087) |
(1,093) |
|
|
|
|
|
|
|
|
| Fair value gain – outstanding warrant |
|
- |
570 |
110 |
103 |
|
|
|
|
|
|
|
|
| Finance income |
|
874 |
144 |
15 |
187 |
|
| Finance expense |
|
(58) |
(56) |
(279) |
(113) |
|
| Net finance income / (expense) |
|
816 |
88 |
(264) |
74 |
|
|
|
|
|
|
|
|
| Income / (loss) and comprehensive income / (loss) for the period |
|
199 |
129 |
(1,241) |
(916) |
|
|
|
|
|
|
|
|
| Income / (loss) and comprehensive income / (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity holders of the company |
|
183 |
127 |
(1,238) |
(917) |
|
| Non-controlling interests |
|
16 |
2 |
(3) |
1 |
|
|
|
|
|
|
|
|
| Income / (loss) and comprehensive income / (loss) for the period |
|
199 |
129 |
(1,241) |
(916) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income / (loss) per share attributable to equity holders of the company: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
0.001 cent |
0.001 cent |
(0.001 cent) |
(0.001 cent) |
|
Interim Condensed Consolidated Statement of Financial Position
(Unaudited)
|
|
At 30 June
2020
$’000 |
At 31 December
2019
$’000 |
|
|
|
|
| Assets |
|
|
|
| Non-current assets |
|
|
|
| Exploration and evaluation assets |
|
40,294 |
40,246 |
| Property, plant and equipment |
|
1 |
1 |
| Trade and other receivables |
|
21 |
30 |
| Restricted cash |
|
2,225 |
2,241 |
|
|
42,541 |
42,518 |
|
|
|
|
| Current assets |
|
|
|
| Cash and cash on equivalents |
|
11,815 |
13,066 |
| Trade and other receivables |
|
104 |
141 |
|
|
11,919 |
13,207 |
|
|
|
|
| Total assets |
|
54,460 |
55,725 |
|
|
|
|
| Equity and liabilities |
|
|
|
|
|
|
|
| Equity attributable to owners of the parent |
|
|
|
| Share capital |
|
392,170 |
392,170 |
| Contributed surplus |
|
45,075 |
45,075 |
| Retained deficit |
|
(394,581) |
(393,343) |
|
|
42,664 |
43,902 |
| Non-controlling interests |
|
697 |
700 |
| Total equity |
|
43,361 |
44,602 |
|
|
|
|
| Liabilities |
|
|
|
| Non-current liabilities |
|
|
|
| Decommissioning provision |
|
10,444 |
10,331 |
|
|
10,444 |
10,331 |
|
|
|
|
| Current liabilities |
|
|
|
| Accounts payable and accrued expenses |
|
655 |
682 |
| Derivative financial liabilities |
|
- |
110 |
|
|
655 |
792 |
| Total liabilities |
|
11,099 |
11,123 |
|
|
|
|
| Total equity and liabilities |
|
54,460 |
55,725 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
|
|
Six months ended 30 June |
|
|
2020
$’000 |
2019
$’000 |
|
|
|
|
| Cash flows from operating activities |
|
|
|
| Net loss for the period |
|
(1,241) |
(916) |
| Adjustments for: |
|
|
|
| Share based compensation |
|
- |
12 |
| Fair value gain - outstanding warrant |
|
(110) |
(103) |
| Net finance expense / (income) |
|
264 |
(74) |
| Effect of exchange rates on operating activities |
|
11 |
27 |
| Change in non-cash working capital: |
|
|
|
| Decrease / (increase) in trade and other receivables |
|
46 |
(28) |
| Increase in accounts payable and accrued expenses |
|
37 |
139 |
| Net cash used in operating activities |
|
(993) |
(943) |
|
|
|
|
| Cash flows from investing activities |
|
|
|
| Interest Received |
|
15 |
70 |
| Exploration and evaluation assets |
|
(48) |
(14) |
| Net cash (used in) / generated from investing activities |
|
(33) |
56 |
|
|
|
|
| Cash flows from financing activities |
|
|
|
| Net proceeds from private placement |
|
- |
8,433 |
| Net cash generated from financing activities |
|
- |
8,433 |
|
|
|
|
|
|
|
|
| Change in cash and cash equivalents |
|
(1,026) |
7,546 |
| Effect of exchange rates on cash & cash equivalents |
|
(225) |
(48) |
| Cash and cash equivalents at beginning of period |
|
13,066 |
6,967 |
|
|
|
|
| Cash and cash equivalents at end of period |
|
11,815 |
14,465 |
All dollar amounts in this document are in United States dollars “$”, 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
Glossary of terms
ORRI Overriding royalty interest
TOG Group Malcolm John Gerrard, Territory Oil & Gas LLC & Tom Dugan Family Partnership LLC
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. 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.
