Welcome!

Microsoft Cloud Authors: Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White, Yeshim Deniz

News Feed Item

Falcon Oil & Gas Ltd. Announces the Filing of Its 2013 Financial Statements, MD&A, AIF and Reserves Data

DUBLIN, IRELAND -- (Marketwired) -- 05/01/14 -- Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon") announces that it has filed its audited financial statements for the year ended 31 December 2013, the accompanying management's discussion and analysis ("MD&A") for year ended 31 December 2013 dated 29 April 2014, its Annual Information Form ("AIF") dated 29 April 2014 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 at www.sedar.com. The audited financial statements and MD&A are also available on Falcon's website www.falconoilandgas.com.

The following should be read in conjunction with the complete audited financial statements for the year ended 31 December 2013 and the accompanying MD&A for the year ended 31 December 2013.

2013-2014 Highlights

--  Farm-out discussions advancing in Australia. 
--  Consolidation of interest in Australian subsidiary completed. 
--  The Overriding Royalty, Beetaloo Basin, Australia reduced. 
--  Drilling and testing of first well in Hungary, fully carried by Naftna
    Industrija Srbije JSC ("NIS"). 
--  Admission to trading on AIM and ESM - successfully raising US$25.7
    million of new capital. 
--  Focus on strict cost management and efficient operation of the
    portfolio. 
--  Healthy financial position, debt free with cash and cash equivalents at
    US$8.4 million. 

Philip O'Quigley, CEO of Falcon commented:

"We have had an extremely busy 2013 and Quarter 1 2014. Our immediate attention is now focused on securing a new farm-out partner for our acreage in Australia and the completion of testing of Kutvolgy-1. Progress to date on all of these fronts is in line with our expectations, we will make further announcements in due course."

Australia

Farm-out discussions in Australia advancing

Further to previous press releases, Falcon was approached by several oil and gas companies interested in farming into the Beetaloo Basin. Falcon is well advanced in its discussions with a number of those companies.

Consolidation of interest in Australian subsidiary

In July 2013 Falcon completed the acquisition of a 25.4% minority interest in Falcon Australia consolidating the Group's interest at 98% of the company.

Reducing the Overriding Royalty, Beetaloo Basin, Australia

On 1 November 2013, Falcon announced that Falcon Australia, had entered into an agreement ("the CRIAG Agreement") with CR Innovations AG ("CRIAG") to acquire its 4% Overriding Royalty Interest ("ORRI") relating to its exploration permits in the Beetaloo Basin. On 17 December 2013, Falcon announced that Falcon Australia, had entered into an agreement with Malcolm John Gerrard, Territory Oil & Gas LLC and Tom Dugan Family Partnership LLC (collectively "TOG Group") to acquire up to 7% (seven eighths) of the remaining 8% private ORRI over Falcon Australia's exploration permits in the Beetaloo Basin. The completing of the two agreements to acquire 8% of the privately held ORRI at a total cost of US$7 million, of which US$6 million is payable only upon completion of a Farm-Out in Australia. In addition, the Group has secured agreement to acquire a further 3% based on two five year call options granted to Falcon at a future combined cost of US$20 million leaving only a 1% royalty in private hands.

Hungary Drilling

The well testing operations on the Kutvolgy-1 well in Hungary have started. Kutvolgy-1 is the first of a three well drilling and testing programme fully funded by NIS, to evaluate the gas potential of the Algyo Formation in Falcon's Mako trough permit. The testing objectives are to determine reservoir quality and gas productivity from the target Algyo formation encountered in Kutvolgy-1.

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.

Debt repayment

In June 2013, Falcon repaid the full amount outstanding on its Convertible Loan Note of CDN$10.7 million. This repayment means that the Group is now completely debt free.

Results for operating activities

Falcon incurred a loss of US$3.6 million in the year ended 31 December 2013, decreasing from a loss of US$17.7 million in the year ended 31 December 2012.

Falcon's cash and cash equivalent balance at 31 December 2013 was US$8.4 million (31 December 2012: US$2.9 million).

Falcon Oil & Gas Ltd.                                                       
Consolidated Statement of Operations and Comprehensive Loss                 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                 Year ended      Year ended 
                                                31 December     31 December 
                                                       2013            2012 
                                                    US$'000         US$'000 
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
Oil and natural gas revenue                              17              21 
----------------------------------------------------------------------------
                                                         17              21 
Expenses                                                                    
Exploration and evaluation expenses                    (899)         (1,654)
Production and operating expenses                       (27)            (37)
Depreciation                                           (307)           (342)
General and administrative expenses                  (4,656)         (6,206)
Share based compensation                               (693)         (2,380)
Restructuring expense                                     -            (792)
Write-down of inventory                                   -            (552)
Foreign exchange gain                                   326               - 
Other income                                            683             276 
----------------------------------------------------------------------------
                                                     (5,573)        (11,687)
----------------------------------------------------------------------------
                                                                            
Results from operating activities                    (5,556)        (11,666)
                                                                            
Fair value gain / (loss) - outstanding                                      
 warrants                                             3,895          (2,019)
                                                                            
Finance Income                                          601              81 
Finance expense                                      (2,510)         (4,111)
----------------------------------------------------------------------------
Net finance expense                                  (1,909)         (4,030)
                                                                            
----------------------------------------------------------------------------
Loss and comprehensive loss for the year             (3,570)        (17,715)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss and comprehensive loss attributable to:                                
Equity holders of the company                        (3,411)        (17,441)
Non-controlling interest                               (159)           (274)
                                                                            
----------------------------------------------------------------------------
Loss and comprehensive loss for the year             (3,570)        (17,715)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss per share attributable to equity                                       
 holders of the company:                                                    
Basic and diluted                            $       (0.004) $        (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Falcon Oil & Gas Ltd.                                                       
Consolidated Statement of Financial Position                                
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                          At             At 
                                                 31 December    31 December 
                                                        2013           2012 
                                                     US$'000        US$'000 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
Non-current assets                                                          
Exploration and evaluation assets                     74,517         74,019 
Property, plant and equipment                          5,403          5,703 
Trade and other receivables                               77            778 
Restricted cash                                          615            873 
----------------------------------------------------------------------------
                                                      80,612         81,373 
----------------------------------------------------------------------------
                                                                            
Current assets                                                              
Cash and cash equivalents                              8,431          2,884 
Trade and other receivables                              473          1,756 
----------------------------------------------------------------------------
                                                       8,904          4,640 
                                                                            
----------------------------------------------------------------------------
Total assets                                          89,516         86,013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Equity and liabilities                                                      
                                                                            
Equity attributable to owners of the parent                                 
Share capital                                        382,853        339,334 
Contributed surplus                                   42,463         41,858 
Retained deficit                                    (350,605)      (334,279)
----------------------------------------------------------------------------
                                                      74,711         46,913 
Non-controlling interests                                737         10,882 
----------------------------------------------------------------------------
Total equity                                          75,448         57,795 
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
Non-current liabilities                                                     
Derivative financial liabilities                         448          5,292 
Decommissioning provision                             11,138         10,955 
----------------------------------------------------------------------------
                                                      11,586         16,247 
----------------------------------------------------------------------------
                                                                            
Current liabilities                                                         
Accounts payable and accrued expenses                  1,533          3,122 
Convertible debentures                                     -          8,773 
Derivative financial liabilities                         949             26 
Decommissioning provision                                  -             50 
----------------------------------------------------------------------------
                                                       2,482         11,971 
----------------------------------------------------------------------------
Total liabilities                                     14,068         28,218 
                                                                            
----------------------------------------------------------------------------
Total equity and liabilities                          89,516         86,013 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Falcon Oil & Gas Ltd.                                                       
Consolidated Statement of Cash Flows                                        
                                                                            
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                     Year Ended 31 December 
                                                          2013         2012 
                                                       US$'000      US$'000 
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities                                        
Net loss for the year                                   (3,570)     (17,715)
Adjustments for:                                                            
  Share based compensation                                 693        2,380 
  Depreciation                                             307          342 
  Fair value (gain) / loss - outstanding warrants       (3,895)       2,019 
  Net finance expense                                    1,909        4,030 
  Other                                                   (383)           - 
Contribution to past costs - Chevron                     1,000            - 
Change in non-cash working capital                        (854)         668 
Interest paid                                             (573)      (1,061)
Interest received                                          102           66 
----------------------------------------------------------------------------
Net cash used in operating activities                   (5,264)      (9,271)
                                                                            
Cash flows from investing activities                                        
Decrease / (increase) in restricted cash                   258         (335)
Exploration and evaluation assets                       (1,964)      (2,834)
Proceeds from farm-out transaction - NIS                 1,500            - 
Property, plant and equipment                              (32)        (325)
----------------------------------------------------------------------------
Net cash used in investing activities                     (238)      (3,494)
                                                                            
Cash flows from financing activities                                        
Proceeds from exercise of share options                    112          152 
Proceeds from private placement - March 2013            25,672            - 
Transaction costs relating to private placement -                           
 March 2013                                             (2,157)           - 
Repayment of 11% debenture                             (10,197)           - 
Share acquisition in Falcon Oil & Gas Australia                             
 Ltd ("Falcon Australia")                               (3,000)           - 
Transaction costs associated with share                                     
 acquisition in Falcon Australia                           (97)           - 
----------------------------------------------------------------------------
Net cash from financing activities                      10,333          152 
                                                                            
Change in cash and cash equivalents                      4,831      (12,613)
Effect of exchange rates on cash & cash                                     
 equivalents                                               716          139 
                                                                            
Cash and cash equivalents at beginning of year           2,884       15,358 
                                                                            
----------------------------------------------------------------------------
Cash and cash equivalents at end of year                 8,431        2,884 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Glossary of terms

US$   United States dollar                                                  
CDN$  Canadian dollar                                                       

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, including comments made with respect to when payments due under the CRIAG and TOG agreements will be made and with respect to the progress of securing a Farm-out agreement. 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 & Gas Ltd.
Philip O'Quigley
CEO
+353 87 814 7042 or +353 1 417 1900

Falcon Oil & Gas Ltd.
John Craven
Non-Executive Chairman
+353 1 417 1900 or +353 1 417 1900
www.falconoilandgas.com

FTI Consulting
Edward Westropp
+44 207 269 7230

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

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

Cantor Fitzgerald Europe (Joint Broker)
David Porter / Richard Redmayne
+44 207 894 7000

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

IoT & Smart Cities Stories
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...