Last checked at 25 Apr 2019 07:00
Falcon Oil & Gas Ltd: Full Year Results
FALCON OIL & GAS LTD. (“Falcon” or the “Company” or the “Group”)
Full Year Results
25 April 2019 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, Euronext Growth: FAC) is pleased to announce its financial results for the year ended 31 December 2018.
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 2018.
2018 Financial Highlights:
Strong financial position, debt free with cash of US$6.9 million at 31 December 2018.Continued focus on strict cost management and efficient operation of the portfolio.General & administrative expenses decreased 3% year on year to US$1.91 million.Filing of Financial Statements, MD&A, AIF and Reserves Data
Falcon has filed its audited financial statements for the year ended 31 December 2018, the accompanying MD&A for year ended 31 December 2018 dated 24 April 2019, its Annual Information Form (“AIF”) dated 24 April 2019 and the Statement of Reserves Data and Other Oil and Gas Information (National Instrument 51-101, Forms 51-101F1, 51-101F2 and 51-101F3) with the relevant provincial securities regulators. These filings are available for review on the Canadian System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The audited financial statements, MD&A and AIF are also available on Falcon’s website www.falconoilandgas.com .
Consolidated Statement of Operations and Comprehensive Loss
| Year Ended 31 December 2018$’000 | Year Ended 31 December 2017$’000 | ||
| Revenue | |||
| Oil and natural gas revenue | 15 | 7 | |
| 15 | 7 | ||
| Expenses | |||
| Exploration and evaluation expenses | (159) | (245) | |
| Production and operating expenses | (10) | (18) | |
| Depreciation | (1) | (4) | |
| General and administrative expenses | (1,909) | (1,975) | |
| Share based compensation | (126) | (686) | |
| Foreign exchange (loss) / gain | (96) | 253 | |
| (2,301) | (2,675) | ||
| Results from operating activities | (2,286) | (2,668) | |
| Fair value gain / loss – outstanding warrants | 1,084 | (1,336) | |
| Finance income | 118 | 201 | |
| Finance expense | (298) | (193) | |
| Net finance (expense) / income | (180) | 8 | |
| Loss before tax | (1,382) | (3,996) | |
| Taxation | - | - | |
| Loss and comprehensive loss for the year | (1,382) | (3,996) | |
| Loss and comprehensive loss attributable to: | |||
| Equity holders of the company | (1,381) | (3,994) | |
| Non-controlling interests | (1) | (2) | |
| Loss and comprehensive loss for the year | (1,382) | (3,996) | |
| Loss per share attributable to equity holders of the company: | |||
| Basic and diluted | (0.001) | (0.004) | |
Consolidated Statement of Financial Position
| At 31 December 2018$’000 | At 31 December 2017$’000 | ||
| Assets | |||
| Non-current assets | |||
| Exploration and evaluation assets | 39,705 | 39,630 | |
| Property, plant and equipment | 2 | 3 | |
| Trade and other receivables | 31 | 33 | |
| Restricted cash | 2,294 | 2,412 | |
| 42,032 | 42,078 | ||
| Current assets | |||
| Cash and cash on deposit | 6,967 | 8,995 | |
| Trade and other receivables | 100 | 186 | |
| 7,067 | 9,181 | ||
| Total assets | 49,099 | 51,259 | |
| Equity and liabilities | |||
| Equity attributable to owners of the parent | |||
| Share capital | 383,737 | 383,570 | |
| Contributed surplus | 45,063 | 44,937 | |
| Retained deficit | (391,604) | (390,223) | |
| 37,196 | 38,284 | ||
| Non-controlling interests | 700 | 701 | |
| Total equity | 37,896 | 38,985 | |
| Liabilities | |||
| Non-current liabilities | |||
| Decommissioning provision | 10,102 | 9,886 | |
| 10,102 | 9,886 | ||
| Current liabilities | |||
| Accounts payable and accrued expenses | 622 | 825 | |
| Derivative financial liabilities | 479 | 1,563 | |
| 1,101 | 2,388 | ||
| Total liabilities | 11,203 | 12,274 | |
| Total equity and liabilities | 49,099 | 51,259 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| Year Ended 31 December | ||
| 2018 $’000 | 2017 $’000 | |
| Cash flows from operating activities | ||
| Net loss for the year | (1,382) | (3,996) |
| Adjustments for: | ||
| Share based compensation | 126 | 686 |
| Depreciation | 1 | 4 |
| Fair value (gain) / loss - outstanding warrants | (1,084) | 1,336 |
| Net finance loss / (income) | 180 | (8) |
| Foreign exchange loss / (gain) | 96 | (251) |
| Change in non-cash working capital | ||
| Trade and other receivables | 88 | 5 |
| Accounts payable and accrued expenses | (206) | 184 |
| Net cash used in operating activities | (2,181) | (2,040) |
| Cash flows from investing activities | ||
| Interest received | 118 | 117 |
| Exploration and evaluation assets | (75) | (12) |
| Decrease / (increase) in cash deposits – other receivables | 6,028 | (1,758) |
| Net cash used in investing activities | 6,071 | (1,653) |
| Cash flows from financing activities | ||
| Proceeds from the exercise of share options | 167 | 717 |
| Net cash generated by financing activities | 167 | 717 |
| Change in cash and cash equivalents | 4,057 | (2,976) |
| Effect of exchange rates on cash & cash equivalents | (57) | 86 |
| Cash and cash equivalents at beginning of year | 2,967 | 5,857 |
| Cash and cash equivalents at end of year | 6,967 | 2,967 |
CONTACT DETAILS:
| Falcon Oil & Gas Ltd. | +353 1 676 8702 |
| Philip O'Quigley, CEO | +353 87 814 7042 |
| Anne Flynn, CFO | +353 1 676 9162 |
| Davy (NOMAD, Euronext Growth Advisor & Joint Broker) | |
| John Frain / Barry Murphy | +353 1 679 6363 |
| RBC (Joint Broker) | |
| Matthew Coakes / Martin Copeland | +44 20 7653 4000 |
| Cenkos Securities plc (Joint Broker) | |
| Neil McDonald/Derrick Lee | +44 131 220 9771 |
All dollar amounts in this document are in United States dollars “$”, 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.
For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com
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.