Falcon Oil & Gas Ltd. Filing of Interim Financi...

FALCON OIL & GAS LTD.
(“Falcon”)

Filing of Interim Financial Statements

23 November 2018 - 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 2018 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 2018, 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.

2018 Operational Highlights

• Strong financial position, debt free with cash of US$7.5 million at 30 September 2018 (31 December 2017: US$9 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)
John Frain / Barry Murphy	[phone]
RBC (Joint Broker)
Matthew Coakes / Martin Copeland	[phone]
Cenkos Securities plc (Joint Broker)
Neil McDonald/Derrick Lee	[phone]

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

		Three months ended 30 September 2018 $’000		Three months ended 30 September 2017 $’000		Nine months ended 30 September 2018 $’000		Nine months ended 30 September 2017 $’000
Revenue
Oil and natural gas revenue		-		2		3		7
		-		2		3		7
Expenses
Exploration and evaluation expenses		(35	)	(53	)	(114	)	(178	)
Production and operating expenses		(3	)	(4	)	(12	)	(10	)
Depreciation		-		(1	)	(1	)	(3	)
General and administrative expenses		(436	)	(528	)	(1,437	)	(1,489	)
Share based compensation		(23	)	(137	)	(104	)	(550	)
Foreign exchange (loss) / gain		(4	)	71		(76	)	217
Other Income		-		1		-		1
		(501	)	(651	)	(1,744	)	(2,012	)
Results from operating activities		(501	)	(649	)	(1,741	)	(2,005	)
Fair value gain / (loss) – outstanding warrant		414		(116	)	641		(1,970	)
Finance income		48		43		68		128
Finance expense		(55	)	(48	)	(211	)	(144	)
Net finance expense		(7	)	(5	)	(143	)	(16	)
Loss and comprehensive loss for the period		(94	)	(770	)	(1,243	)	(3,991	)
Loss and comprehensive loss attributable to:
Equity holders of the company		(94	)	(770	)	(1,242	)	(3,990	)
Non-controlling interests		-		-		(1	)	(1	)
Loss and comprehensive loss for the period		(94	)	(770	)	(1,243	)	(3,991	)
Loss per share attributable to equity holders of the company:
Basic and diluted		(0.000 cent)		(0.001 cent)		(0.001 cent)		(0.004 cent)

Consolidated Statement of Financial Position
(Unaudited)

		At 30 September 2018 $’000		At 31 December 2017 $’000
Assets
Non-current assets
Exploration and evaluation assets		39,706		39,630
Property, plant and equipment		2		3
Trade and other receivables		22		33
Restricted cash		2,326		2,412
		42,056		42,078
Current assets
Cash and cash on deposit		7,484		8,995
Trade and other receivables		164		186
		7,648		9,181
Total assets		49,704		51,259
Equity and liabilities
Equity attributable to owners of the parent
Share capital		383,737		383,570
Contributed surplus		45,041		44,937
Retained deficit		(391,465	)	(390,223	)
		37,313		38,284
Non-controlling interests		700		701
Total equity		38,013		38,985
Liabilities
Non-current liabilities
Decommissioning provision		10,051		9,886
		10,051		9,886
Current liabilities
Accounts payable and accrued expenses		718		825
Derivative financial liabilities		922		1,563
		1,640		2,388
Total liabilities		11,691		12,274
Total equity and liabilities		49,704		51,259

Interim Condensed Consolidated Statement of Cash Flows
(Unaudited)

		Nine months ended 30 September
		2018 $’000		2017 $’000
Cash flows from operating activities
Net loss for the period		(1,243	)	(3,991	)
Adjustments for:
Share based compensation		104		550
Depreciation		1		3
Fair value (gain) / loss - outstanding warrant		(641	)	1,970
Net finance expense		143		16
Effect of exchange rates on operating activities		77		(217	)
Change in non-cash working capital:
Trade and other receivables		33		(16	)
Accounts payable and accrued expenses		(118	)	195
Net cash used in operating activities		(1,644	)	(1,490	)
Cash flows from investing activities
Decrease in cash deposits – other receivables		6,028		4,270
Interest Received		68		50
Exploration and evaluation assets		(76	)	(12	)
Net cash generated from investing activities		6,020		4,308
Cash flows from financing activities
Proceeds from the exercise of share options		167		680
Net cash generated from financing activities		167		680
Change in cash and cash equivalents		4,543		3,498
Effect of exchange rates on cash & cash equivalents		(26	)	78
Cash and cash equivalents at beginning of period		2,967		5,857
Cash and cash equivalents at end of period		7,484		9,433

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 2018	31 December 2017
	$’000	$’000
Cash and cash equivalents	7,484	2,967
Cash on deposit	-	6,028
	7,484	8,995

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.