Welcome!

.NET Authors: Srinivasan Sundara Rajan, Pat Romanski, Jayaram Krishnaswamy, Elizabeth White, Nitin Bandugula

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.

@ThingsExpo Stories
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!