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

FALCON OIL & GAS LTD.
("Falcon")

Filing of Interim Financial Statements

25 August 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) announces that it has filed its Interim Financial Statements for the three and six months ended 30 June 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 six months ended 30 June 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$9.7 million at 30 June 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 16% period on period to US$961,000 (2016: US$1,144,000).

             
             
Annual General & Special Meeting
As previously announced, Falcon's Annual General and Special Shareholder Meeting will be held at the Conrad Hotel, Earlsfort Terrace, Dublin 2, Ireland on 14 September 2017 at 11:00 a.m. (Dublin time). A complete notice and related documents have been sent to shareholders of record as at 4 August 2017 and are also available on SEDAR at www.sedar.com and Falcon's website at www.falconoilandgas.com.

CONTACT DETAILS:

Falcon Oil & Gas Ltd.	[phone]
Philip O'Quigley, CEO	[phone]
Anne Flynn, CFO	[phone]
Davy (NOMAD & Broker)
John Frain / Anthony Farrell	[phone]

Interim Condensed Consolidated Statement of Operations and Comprehensive Loss
(Unaudited) 

		Three months ended 30 June 2017 $'000	Three months ended 30 June 2016 $'000	Six months ended 30 June 2017 $'000	Six months ended 30 June 2016 $'000
Revenue
Oil and natural gas revenue		2	1	5	1
		2	1	5	1
Expenses
Exploration and evaluation expenses		(58)	(98)	(125)	(188)
Production and operating expenses		(3)	(4)	(6)	(7)
Depreciation		(1)	(4)	(2)	(11)
General and administrative expenses		(484)	(603)	(961)	(1,144)
Share based compensation		(130)	(211)	(413)	(1,031)
Foreign exchange gain / (loss)		142	(38)	146	18
		(534)	(958)	(1,361)	(2,363)
Results from operating activities		(532)	(957)	(1,356)	(2,362)
Fair value gain / (loss) - outstanding warrant		266	(74)	(1,854)	62
Finance income		48	12	85	27
Finance expense		(48)	(34)	(96)	(62)
Net finance expense		-	(22)	(11)	(35)
Loss and comprehensive loss for the period		(266)	(1,053)	(3,221)	(2,335)
Loss and comprehensive loss attributable to:
Equity holders of the company		(266)	(1,052)	(3,220)	(2,332)
Non-controlling interests		-	(1)	(1)	(3)
Loss and comprehensive loss for the period		(266)	(1,053)	(3,221)	(2,335)
Loss per share attributable to equity holders of the company:
Basic and diluted		(0.000 cent)	(0.001 cent)	(0.003 cent)	(0.003 cent)

Consolidated Statement of Financial Position

(Unaudited)

		At 30 June 2017 $'000	At 31 December 2016 $'000
Assets
Non-current assets
Exploration and evaluation assets		39,630	39,618
Property, plant and equipment		5	7
Trade and other receivables		36	34
Restricted cash		2,296	2,151
		41,967	41,810
Current assets
Cash and cash on deposit		9,675	10,127
Trade and other receivables		248	190
		9,923	10,317
Total assets		51,890	52,127
Equity and liabilities
Equity attributable to owners of the parent
Share capital		383,392	382,853
Contributed surplus		44,664	44,251
Retained deficit		(389,449)	(386,229)
		38,607	40,875
Non-controlling interests		702	703
Total equity		39,309	41,578
Liabilities
Non-current liabilities
Decommissioning provision		9,788	9,690
		9,788	9,690
Current liabilities
Accounts payable and accrued expenses		712	632
Derivative financial liabilities		2,081	227
		2,793	859
Total liabilities		12,581	10,549
Total equity and liabilities		51,890	52,127

Interim Condensed Consolidated Statement of Cash Flows
(Unaudited)

		Six months ended 30 June
		2017 $'000	2016 $'000
Cash flows from operating activities
Net loss for the period		(3,221)	(2,335)
Adjustments for:
Share based compensation		413	1,031
Depreciation		2	11
Fair value loss / (gain) - outstanding warrant		1,854	(62)
Net finance expense		11	35
Effect of exchange rates on operating activities		(149)	(16)
Change in non-cash working capital:
Trade and other receivables		(60)	23
Accounts payable and accrued expenses		83	(186)
Interest received		45	25
Net cash used in operating activities		(1,022)	(1,474)
Cash flows from investing activities
Increase in cash deposits - other receivables		(3,007)	(4,701)
Property plant and equipment		-	(4)
Exploration and evaluation assets		(12)	(110)
Net cash used in investing activities		(3,019)	(4,815)
Cash flows from financing activities
Proceeds from the exercise of share options		539	-
Net cash generated from financing activities		539	-
Change in cash and cash equivalents		(3,502)	(6,289)
Effect of exchange rates on cash & cash equivalents		43	6
Cash and cash equivalents at beginning of period		5,857	10,683
Cash and cash equivalents at end of period		2,398	4,400

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 2017	31 December 2016
	$'000	$'000
Cash and cash equivalents	2,398	5,857
Cash on deposit	7,277	4,270
	9,675	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.

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Source: Falcon Oil & Gas Ltd. via Globenewswire