(Alliance News) - Falcon Oil & Gas Ltd on Thursday reported a narrowed interim loss and announced that its joint venture partner, Tamboran (B2) Pty Ltd, has given notice that the 2014 farm-in commitments have now been met.
The Australia, Hungary and South Africa-focused oil and gas company reported a comprehensive loss of USD1.4 million in the six months ended June 30, narrowed from USD2.1 million the year prior.
The company recorded no revenue in the half, unchanged from the previous year. Falcon benefited as its total expenses reduced to USD1.2 million from USD1.9 million the year prior.
Falcon said the 2014 farm-in commitments regarding the Beetaloo sub-basin in Australia have now been met, having reached the associated cost carry commitment of AUD264 million, or around GBP134.7 million.
This AUD264 million figure was in addition to the uncapped carry for stage one of the three-stage work programme which amounted to around AUD85 million, with total spend in the Beetaloo sub-basin to date totalling AUD349 million.
The company explained it has optionality in respect of its exposure to future activity within the exploration permits and is able to elect to participate up to 22.5% on future wells following the introduction of drilling spacing units on sole risk operations.
"This flexibility ensures that [Falcon Oil & Gas Australia Ltd] can tailor its participation in each proposed well to best preserve its capital while at the same time maximising exposure to the development of the Beetaloo," Falcon explained.
Falcon Australia is the company's subsidiary.
Shares in Falcon were up 2.3% at 6.65 pence on Friday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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Falcon Oil (FOG)