Falcon Oil & Gas Ltd. - Filing of Interim Finan...

FALCON OIL & GAS LTD.
(“Falcon”)

Filing of Interim Financial Statements

29 August 2019 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, Euronext Growth: FAC) announces that it has filed its Interim Financial Statements for the three and six months ended 30 June 2019 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 six months ended 30 June 2019, 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.

2019 Operational Highlights

• Strong financial position, debt free with cash of US$14.5 million at 30 June 2019 (31 December 2018: US$7 million).
• Continued focus on strict cost management and efficient operation of the portfolio.

CONTACT DETAILS:

Falcon Oil & Gas Ltd.	[phone]
Philip O'Quigley, CEO	[phone]
Anne Flynn, CFO	[phone]
Davy (NOMAD, Joint Broker, Euronext Growth Advisor)
John Frain / Barry Murphy	[phone]
Cenkos Securities plc (Joint Broker)
Neil McDonald / Derrick Lee	[phone]
RBC (Joint Broker)
Matthew Coakes / Martin Copeland	[phone]

Interim CondensedConsolidated Statement  of Operations and Comprehensive Income / (Loss) 
(Unaudited)

		Three months ended 30 June 2019 $’000	Three months ended 30 June 2018 $’000	Six months ended 30 June 2019 $’000	Six months ended 30 June 2018 $’000
Revenue
Oil and natural gas revenue		1	2	3	3
		1	2	3	3
Expenses
Exploration and evaluation expenses		(108)	(38)	(149)	(79)
Production and operating expenses		(3)	(5)	(6)	(9)
Depreciation		-	(1)	-	(1)
General and administrative expenses		(443)	(497)	(902)	(1,001)
Share based compensation		-	(22)	(12)	(81)
Foreign exchange gain / (loss)		24	(134)	(27)	(72)
		(530)	(697)	(1,096)	(1,243)
Results from operating activities		(529)	(695)	(1,093)	(1,240)
Fair value gain – outstanding warrant		570	283	103	227
Finance income		144	25	187	31
Finance expense		(56)	(107)	(113)	(167)
Net finance income / (expense)		88	(82)	74	(136)
Income / (loss) and comprehensive income / (loss) for the period		129	(494)	(916)	(1,149)
Income / (loss) and comprehensive income / (loss) attributable to:
Equity holders of the company		127	(494)	(917)	(1,148)
Non-controlling interests		2	-	1	(1)
Income / (loss) and comprehensive income / (loss) for the period		129	(494)	(916)	(1,149)
Income / (loss) per share attributable to equity holders of the company:
Basic and diluted		0.000 cent	(0.001 cent)	(0.001 cent)	(0.001 cent)

Interim CondensedConsolidated Statement of Financial Position
(Unaudited)

		At 30 June 2019 $’000	At 31 December 2018 $’000
Assets
Non-current assets
Exploration and evaluation assets		39,719	39,705
Property, plant and equipment		2	2
Trade and other receivables		31	31
Restricted cash		2,281	2,294
		42,033	42,032
Current assets
Cash and cash on deposit		14,465	6,967
Trade and other receivables		128	100
		14,593	7,067
Total assets		56,626	49,099
Equity and liabilities
Equity attributable to owners of the parent
Share capital		392,170	383,737
Contributed surplus		45,075	45,063
Retained deficit		(392,521)	(391,604)
		44,724	37,196
Non-controlling interests		701	700
Total equity		45,425	37,896
Liabilities
Non-current liabilities
Decommissioning provision		10,218	10,102
		10,218	10,102
Current liabilities
Accounts payable and accrued expenses		607	622
Derivative financial liabilities		376	479
		983	1,101
Total liabilities		11,201	11,203
Total equity and liabilities		56,626	49,099

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

		Six months ended 30 June
		2019 $’000	2018 $’000
Cash flows from operating activities
Net loss for the period		(916)	(1,149)
Adjustments for:
Share based compensation		12	81
Depreciation		-	1
Fair value gain - outstanding warrant		(103)	(227)
Net finance (income) / expense		(74)	136
Effect of exchange rates on operating activities		(27)	73
Change in non-cash working capital:
Trade and other receivables		(28)	(9)
Accounts payable and accrued expenses		193	(196)
Net cash used in operating activities		(943)	(1,290)
Cash flows from investing activities
Decrease in cash deposits – other receivables		-	3,528
Interest received		70	31
Exploration and evaluation assets		(14)	(26)
Net cash generated from investing activities		56	3,533
Cash flows from financing activities
Net proceeds from private placement		8,433	-
Proceeds from the exercise of share options		-	57
Net cash generated from financing activities		8,433	57
Change in cash and cash equivalents		7,546	2,300
Effect of exchange rates on cash & cash equivalents		(48)	(45)
Cash and cash equivalents at beginning of period		6,967	2,967
Cash and cash equivalents at end of period		14,465	5,222

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 June 2019	31 December 2018
	$’000	$’000
Cash and cash equivalents	14,465	6,967
Cash on deposit	-	-
	14,465	6,967

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.