Falcon Oil & Gas Ltd.: Filing of Interim Financial Statements
FALCON OIL & GAS LTD.
("Falcon")
Filing of Interim Financial Statements
24 November 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) announces that it has filed its Interim Financial Statements for the three and nine months ended 30 September 2017 and the accompanying Management's Discussion and Analysis ("MD&A").
The following should be read in conjunction with the complete unaudited unreviewed Interim Financial Statements and the accompanying MD&A for the three and nine months ended 30 September 2017, which are available on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and on Falcon's website at www.falconoilandgas.com.
2017 Operational Highlights
- Strong financial position, debt free with cash of US$9.4 million at 30 September 2017 (31 December 2016: US$10.1 million).
- Continued focus on strict cost management and efficient operation of the portfolio.
- General and administrative expenses decreased 6% period on period to US$1,489,000 (2016: US$1,584,000).
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 & Joint Broker) | |
| John Frain / Anthony Farrell | +353 1 679 6363 |
| RBC (Joint Broker) | |
| Matthew Coakes / Martin Copeland | +44 20 7653 4000 |
| Three months ended 30 September 2017 $'000 | Three months ended 30 September 2016 $'000 | Nine months ended 30 September 2017 $'000 | Nine months ended 30 September 2016 $'000 | ||||
| Revenue | |||||||
| Oil and natural gas revenue | 2 | 3 | 7 | 4 | |||
| 2 | 3 | 7 | 4 | ||||
| Expenses | |||||||
| Exploration and evaluation expenses | (53) | (77) | (178) | (265) | |||
| Production and operating expenses | (4) | (4) | (10) | (12) | |||
| Depreciation | (1) | (1) | (3) | (12) | |||
| General and administrative expenses | (528) | (440) | (1,489) | (1,584) | |||
| Share based compensation | (137) | (222) | (550) | (1,252) | |||
| Foreign exchange gain | 71 | 10 | 217 | 28 | |||
| Other Income | 1 | 2 | 1 | 2 | |||
| (651) | (732) | (2,012) | (3,095) | ||||
| Results from operating activities | (649) | (729) | (2,005) | (3,091) | |||
| Fair value (loss) / gain - outstanding warrant | (116) | 169 | (1,970) | 231 | |||
| Finance income | 43 | 6 | 128 | 33 | |||
| Finance expense | (48) | (31) | (144) | (93) | |||
| Net finance expense | (5) | (25) | (16) | (60) | |||
| Loss and comprehensive loss for the period | (770) | (585) | (3,991) | (2,920) | |||
| Loss and comprehensive loss attributable to: | |||||||
| Equity holders of the company | (770) | (586) | (3,990) | (2,918) | |||
| Non-controlling interests | - | 1 | (1) | (2) | |||
| Loss and comprehensive loss for the period | (770) | (585) | (3,991) | (2,920) | |||
| Loss per share attributable to equity holders of the company: | |||||||
| Basic and diluted | (0.001 cent) | (0.001 cent) | (0.004 cent) | (0.003 cent) | |||
| At 30 September 2017 $'000 | At 31 December 2016 $'000 | ||
| Assets | |||
| Non-current assets | |||
| Exploration and evaluation assets | 39,630 | 39,618 | |
| Property, plant and equipment | 4 | 7 | |
| Trade and other receivables | 37 | 34 | |
| Restricted cash | 2,374 | 2,151 | |
| 42,045 | 41,810 | ||
| Current assets | |||
| Cash and cash on deposit | 9,433 | 10,127 | |
| Trade and other receivables | 203 | 190 | |
| 9,636 | 10,317 | ||
| Total assets | 51,681 | 52,127 | |
| Equity and liabilities | |||
| Equity attributable to owners of the parent | |||
| Share capital | 383,533 | 382,853 | |
| Contributed surplus | 44,801 | 44,251 | |
| Retained deficit | (390,219) | (386,229) | |
| 38,115 | 40,875 | ||
| Non-controlling interests | 702 | 703 | |
| Total equity | 38,817 | 41,578 | |
| Liabilities | |||
| Non-current liabilities | |||
| Decommissioning provision | 9,838 | 9,690 | |
| 9,838 | 9,690 | ||
| Current liabilities | |||
| Accounts payable and accrued expenses | 829 | 632 | |
| Derivative financial liabilities | 2,197 | 227 | |
| 3,026 | 859 | ||
| Total liabilities | 12,864 | 10,549 | |
| Total equity and liabilities | 51,681 | 52,127 |
| Nine months ended 30 September | |||
| 2017 $'000 | 2016 $'000 | ||
| Cash flows from operating activities | |||
| Net loss for the period | (3,991) | (2,920) | |
| Adjustments for: | |||
| Share based compensation | 550 | 1,252 | |
| Depreciation | 3 | 12 | |
| Fair value loss / (gain) - outstanding warrant | 1,970 | (231) | |
| Net finance expense | 16 | 60 | |
| Effect of exchange rates on operating activities | (217) | (28) | |
| Change in non-cash working capital: | |||
| Trade and other receivables | (16) | 53 | |
| Accounts payable and accrued expenses | 195 | (206) | |
| Interest received | 50 | 31 | |
| Net cash used in operating activities | (1,440) | (1,977) | |
| Cash flows from investing activities | |||
| Decrease / (increase) in cash deposits - other receivables | 4,270 | (1,701) | |
| Exploration and evaluation assets | (12) | (110) | |
| Net cash generated from / (used in) investing activities | 4,258 | (1,811) | |
| Cash flows from financing activities | |||
| Proceeds from the exercise of share options | 680 | - | |
| Net cash generated from financing activities | 680 | - | |
| Change in cash and cash equivalents | 3,498 | (3,788) | |
| Effect of exchange rates on cash & cash equivalents | 78 | 6 | |
| Cash and cash equivalents at beginning of period | 5,857 | 10,683 | |
| Cash and cash equivalents at end of period | 9,433 | 6,901 | |
Cash and cash on deposit
Cash and cash equivalents includes cash on hand, deposits held on call with banks, other short term highly liquid investments with initial maturities of three months or less at inception and bank overdrafts where a legal right of offset exists. Cash on deposit represents cash on deposit with a maturity in excess of three months.
| 30 September 2017 | 31 December 2016 | |
| $'000 | $'000 | |
| Cash and cash equivalents | 9,433 | 5,857 |
| Cash on deposit | - | 4,270 |
| 9,433 | 10,127 |
All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and development of conventional and 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. 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.
