Falcon Oil & Gas Ltd: Full Year Results

FALCON OIL & GAS LTD.
(“Falcon” or the “Company” or the “Group”)

Full Year Results

25 April 2019 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, Euronext Growth: FAC) is pleased to announce its financial results for the year ended 31 December 2018.

The following should be read in conjunction with the complete audited Financial Statements and the accompanying Management’s Discussion and Analysis (“MD&A”) for the three and twelve months ended 31 December 2018.

2018 Financial Highlights:

• Strong financial position, debt free with cash of US$6.9 million at 31 December 2018.
• Continued focus on strict cost management and efficient operation of the portfolio.
• General & administrative expenses decreased 3% year on year to US$1.91 million.

Filing of Financial Statements, MD&A, AIF and Reserves Data

Falcon has filed its audited financial statements for the year ended 31 December 2018, the accompanying MD&A for year ended 31 December 2018 dated 24 April 2019, its Annual Information Form (“AIF”) dated 24 April 2019 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 on the Canadian System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The audited financial statements, MD&A and AIF are also available on Falcon’s website www.falconoilandgas.com .

Consolidated Statement of Operations and Comprehensive Loss

		Year Ended 31 December 2018 $’000	Year Ended 31 December 2017 $’000
Revenue
Oil and natural gas revenue		15	7
		15	7
Expenses
Exploration and evaluation expenses		(159)	(245)
Production and operating expenses		(10)	(18)
Depreciation		(1)	(4)
General and administrative expenses		(1,909)	(1,975)
Share based compensation		(126)	(686)
Foreign exchange (loss) / gain		(96)	253
		(2,301)	(2,675)
Results from operating activities		(2,286)	(2,668)
Fair value gain / loss – outstanding warrants		1,084	(1,336)
Finance income		118	201
Finance expense		(298)	(193)
Net finance (expense) / income		(180)	8
Loss before tax		(1,382)	(3,996)
Taxation		-	-
Loss and comprehensive loss for the year		(1,382)	(3,996)
Loss and comprehensive loss attributable to:
Equity holders of the company		(1,381)	(3,994)
Non-controlling interests		(1)	(2)
Loss and comprehensive loss for the year		(1,382)	(3,996)
Loss per share attributable to equity holders of the company:
Basic and diluted		(0.001)	(0.004)

Consolidated Statement of Financial Position 

		At 31 December 2018 $’000	At 31 December 2017 $’000
Assets
Non-current assets
Exploration and evaluation assets		39,705	39,630
Property, plant and equipment		2	3
Trade and other receivables		31	33
Restricted cash		2,294	2,412
		42,032	42,078
Current assets
Cash and cash on deposit		6,967	8,995
Trade and other receivables		100	186
		7,067	9,181
Total assets		49,099	51,259
Equity and liabilities
Equity attributable to owners of the parent
Share capital		383,737	383,570
Contributed surplus		45,063	44,937
Retained deficit		(391,604)	(390,223)
		37,196	38,284
Non-controlling interests		700	701
Total equity		37,896	38,985
Liabilities
Non-current liabilities
Decommissioning provision		10,102	9,886
		10,102	9,886
Current liabilities
Accounts payable and accrued expenses		622	825
Derivative financial liabilities		479	1,563
		1,101	2,388
Total liabilities		11,203	12,274
Total equity and liabilities		49,099	51,259

CONSOLIDATED STATEMENT OF CASH FLOWS

	Year Ended 31 December
	2018 $’000	2017 $’000
Cash flows from operating activities
Net loss for the year	(1,382)	(3,996)
Adjustments for:
Share based compensation	126	686
Depreciation	1	4
Fair value (gain) / loss - outstanding warrants	(1,084)	1,336
Net finance loss / (income)	180	(8)
Foreign exchange loss / (gain)	96	(251)
Change in non-cash working capital
Trade and other receivables	88	5
Accounts payable and accrued expenses	(206)	184
Net cash used in operating activities	(2,181)	(2,040)
Cash flows from investing activities
Interest received	118	117
Exploration and evaluation assets	(75)	(12)
Decrease / (increase) in cash deposits – other receivables	6,028	(1,758)
Net cash used in investing activities	6,071	(1,653)
Cash flows from financing activities
Proceeds from the exercise of share options	167	717
Net cash generated by financing activities	167	717
Change in cash and cash equivalents	4,057	(2,976)
Effect of exchange rates on cash & cash equivalents	(57)	86
Cash and cash equivalents at beginning of year	2,967	5,857
Cash and cash equivalents at end of year	6,967	2,967

CONTACT DETAILS:

Falcon Oil & Gas Ltd.	[phone]
Philip O'Quigley, CEO	[phone]
Anne Flynn, CFO	[phone]
Davy (NOMAD, Euronext Growth Advisor & 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]

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 exploration and development of 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.  Such information may include, but is not limited to comments made with respect to the awarding of an exploration license in South Africa, to the type, number, schedule, testing and objectives of the wells to be drilled in the Beetaloo basin Australia, expected contributions of the partners, the prospectivity of the Middle Velkerri shale play and the prospect of the exploration programme being brought to commerciality. 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.