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Falcon Oil & Gas Ltd. Announces its Interim Results & Filing of its Financial Statements and Accompanying MD&A: Six Months Ended 30 June 2013

Aug 29 2013 12:00AM

Marketwire

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DUBLIN, IRELAND -- (Marketwired) -- 08/29/13 -- Falcon Oil & Gas Ltd. (TSX VENTURE: FO)(AIM: FOG)(ESM: FAC) ("Falcon") announces its results for the six months ended 30 June 2013; and that it has filed its Interim Financial Statements with the TSXV for the six months period ended 30 June 2013 and the accompanying Management's Discussion and Analysis.

The following should be read in conjunction with the complete Interim Financial Statements and the accompanying Management's Discussion and Analysis for the 6 months period ended 30 June 2013. These filings are available at www.sedar.com and on Falcon's website at www.falconoilandgas.com.

Highlights

-- Consolidation of interest in Australian subsidiary-- Retained full interest in Betaloo permits in the interest of Falcon shareholders; active discussions with third parties ongoing-- Drilling of first well in Hungary, fully carried by NIS, completed now and awaiting testing-- Focus on strict cost management and efficient operation of the portfolio-- Admission to trading on AIM and ESM and successfully raising US$25.7 million of new capital



Australia

Falcon completed the acquisition of Sweetpea Petroleum Pty Ltd's 24% minority interest in its subsidiary Falcon Oil & Gas Australia Ltd ("Falcon Australia"). Falcon Australia is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion of the share purchase, Falcon owns 200 million shares in Falcon Australia representing 96.9% of the issued share capital of Falcon Australia. Falcon is consolidating its interest in this high potential asset. The extensive seismic program carried out and funded by Hess over the past two years added to Falcon's confidence in the resource potential of this basin. In addition Falcon is in the process of purchasing shares from certain of the remaining shareholders in Falcon Australia.

Falcon has retained its interest the Beetaloo permits after Hess' request to defer its drilling decision was rejected by the Falcon Board. Falcon regards the Beetaloo Basin as a potential world class conventional and unconventional play with significant oil and gas potential. Hess requested a one month extension to allow them sufficient time to conclude a farm-out deal with a third party. Falcon's rejection of their request and Hess's subsequent decision not to elect by the agreed deadline was viewed by the Board of Falcon as an opportunity for Falcon shareholders to increase their interest in what promises to be a basin enhanced and de-risked by the new seismic data.

Hungary Drilling

Initial drilling operations on the Kutvolgy-1 well have ceased, the well having reached total depth ("TD") of 3,305 metres. As expected, the top of the Algyo formation was encountered at 2,985 metres; the well then penetrating an alternating sequence of sandstones, siltstones and shales over a gross interval of 320 metres to TD, with gas shows throughout. Two conventional cores have been taken and extensive wireline logs were run. As planned the well has been cased to TD and is now suspended while further technical evaluation is undertaken prior to carrying out an appropriate testing programme later this year.

Admission to trading on AIM and ESM

In March 2013, Falcon was admitted to trading on the AIM market of the London Stock Exchange and the ESM market of the Irish Stock Exchange of the Company's existing share capital and the additional 120,381,973 new common shares in the capital of the Company issued pursuant to the concurrent conditional brokered private placing, at a price of GBP 0.14 (CDN$0.215) per share, raising gross proceeds of $25.7 million (GBP 16.9 million).

Debt repayment

Falcon repaid the full amount outstanding on its Convertible Loan Note of CDN$10.657 million. This repayment means that the Company is now completely debt free.

Results for operating activities

The Group incurred a loss of US$3.2 million in the six months ended 30 June 2013, decreased from a loss of US$6.4 million in the six months ended 30 June 2012.

The Group's cash and cash equivalent balance at 30 June 2013 was US$14.7 million (31 December 2012: US$2.9 million).

Philip O'Quigley, CEO of Falcon commented:

"We have been extremely busy during the first half of 2013, successfully raising US$25.7 million of new capital, achieving debt-free status and significantly reducing our operating loss.

Our attention has now switched to securing a new farm-out on our acreage in Australia, preparing for the testing of the Kutvolgy-1 well in Hungary and working with Chevron under our Cooperation Agreement in South Africa. Based on progress to-date on all of these fronts we expect the second half of 2013 to be even busier."

Falcon Oil & Gas Ltd.Interim Condensed Consolidated Statements of Operations and ComprehensiveLoss(Unaudited)



-------------------------------------------------------------------------------------------------------------------------------------------------------- Three months Three months Six months Six months ended 30 ended 30 ended 30 ended 30 June 2013 June 2012 June 2013 June 2012 $'000 $'000 $'000 $'000--------------------------------------------------------------------------------------------------------------------------------------------------------RevenueOil and natural gas revenue 4 5 7 11---------------------------------------------------------------------------- 4 5 7 11ExpensesExploration and evaluation expenses (210) (429) (408) (1,114)Production and operating expenses (7) (7) (12) (12)Depletion and depreciation (62) (171) (207) (238)General and administrative expenses (1,419) (1,702) (2,604) (3,247)Share based compensation (178) (913) (273) (1,441)Restructuring expenses - (612) - (612)Other income 102 101 339 238---------------------------------------------------------------------------- (1,774) (3,733) (3,165) (6,426)----------------------------------------------------------------------------Results from operating activities (1,770) (3,728) (3,158) (6,415)Fair value gain / (loss) - outstanding warrants 557 (1,108) (1,324) 622Finance income 268 18 262 38Finance expense (951) (1,054) (2,422) (1,968)----------------------------------------------------------------------------Net finance expense (683) (1,036) (2,160) (1,930)----------------------------------------------------------------------------Net loss and comprehensive loss for the period (1,896) (5,872) (6,642) (7,723)--------------------------------------------------------------------------------------------------------------------------------------------------------Net loss and comprehensive loss attributable to:Equity holders of the company (1,805) (5,802) (6,506) (7,562)Non-controlling interests (91) (70) (136) (161)----------------------------------------------------------------------------Net loss and comprehensive loss for the period (1,896) (5,872) (6,642) (7,723)--------------------------------------------------------------------------------------------------------------------------------------------------------Net Loss per share attributable to equity holders of the company:Basic and diluted (0.002 cent) (0.008 cent) (0.009 cent) (0.011 cent)--------------------------------------------------------------------------------------------------------------------------------------------------------Falcon Oil & Gas Ltd.Interim Condensed Consolidated Statements of Financial Position(Unaudited)-------------------------------------------------------------------------------------------------------------------------------------------------------- At 30 June At 31 December 2013 2012 $'000 $'000--------------------------------------------------------------------------------------------------------------------------------------------------------AssetsNon-current assetsExploration and evaluation assets 72,777 74,019Property, plant and equipment 5,482 5,703Trade and other receivables 584 1,265---------------------------------------------------------------------------- 78,843 80,987----------------------------------------------------------------------------Current assetsCash and cash equivalents 14,713 2,884Restricted cash 377 386Trade and other receivables 542 1,756---------------------------------------------------------------------------- 15,632 5,026----------------------------------------------------------------------------Total assets 94,475 86,013--------------------------------------------------------------------------------------------------------------------------------------------------------Equity and liabilitiesEquity attributable to owners of the parentShare capital 362,840 339,334Contributed surplus 42,131 41,858Retained deficit (340,785) (334,279)---------------------------------------------------------------------------- 64,186 46,913Non-controlling interests 10,746 10,882----------------------------------------------------------------------------Total equity 74,932 57,795----------------------------------------------------------------------------LiabilitiesNon-current liabilitiesDerivative financial liabilities 1,117 5,292Decommissioning provision 10,833 10,955---------------------------------------------------------------------------- 11,950 16,247----------------------------------------------------------------------------Current liabilitiesAccounts payable and accrued expenses 2,094 3,122Convertible debentures - 8,773Derivative financial liabilities 5,499 26Decommissioning provision - 50---------------------------------------------------------------------------- 7,593 11,971----------------------------------------------------------------------------Total liabilities 19,543 28,218----------------------------------------------------------------------------Total equity and liabilities 94,475 86,013--------------------------------------------------------------------------------------------------------------------------------------------------------Falcon Oil & Gas Ltd.Interim Condensed Consolidated Statements of Cash Flows(Unaudited)-------------------------------------------------------------------------------------------------------------------------------------------------------- Six months ended 30 June 2013 2012 $'000 $'000----------------------------------------------------------------------------Cash flows from operating activitiesNet loss for the period (6,642) (7,723)Adjustments for: Share based compensation 273 1,441 Depletion and depreciation 207 238 Fair value (loss) / gain - outstanding warrants 1,324 (622) Net finance expense 2,160 1,930 Other - (180)Contribution to past costs - Chevron 1,000 -Change in non-cash working capital (693) 1,649Interest paid (573) (579)Interest received 63 38----------------------------------------------------------------------------Net cash used in operating activities (2,881) (3,808)Cash flows from investing activitiesExploration and evaluation assets (560) (2,676)Proceeds from farm-out transaction - NIS 1,500 -Property, plant and equipment (26) (21)----------------------------------------------------------------------------Net cash generated by / (used in) investing activities 914 (2,697)Cash flows from financing activitiesProceeds from private placement - March 2013 25,672 -Transaction costs relating to private placement - March 2013 (1,897) -Repayment of 11% debenture (10,197) -----------------------------------------------------------------------------Net cash from financing activities 13,578 -Change in cash and cash equivalents 11,611 (6,505)Effect of exchange rates on cash & cash equivalents 218 (62)Cash and cash equivalents at beginning of period 2,884 15,358----------------------------------------------------------------------------Cash and cash equivalents at end of period 14,713 8,791--------------------------------------------------------------------------------------------------------------------------------------------------------



About Falcon Oil & Gas Ltd.

Falcon is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South Africa and Hungary. Falcon 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. 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.



Contacts:
Falcon Oil and Gas Ltd.
+353 1 417 1900
Philip O'Quigley, CEO
+353 87 814 7042

FTI Consulting
Billy Clegg: +44 207 269 7157
Edward Westropp: +44 207 269 7230
Natalia Erikssen: +44 207 269 9348

Davy (NOMAD & Joint Broker)
John Frain/Anthony Farrell
+353 1 679 6363

GMP Securities Europe LLP (Joint Broker)
Rob Collins/Alexandra Carse
+44 20 7647 2800

Cantor Fitzgerald Europe (Joint Broker)
Stewart Dickson/Richard Redmayne/Julian Erleigh
+44 207 894 7000





Source: Marketwire


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