Falcon Oil & Gas Ltd. - Full Year Results

FALCON OIL & GAS LTD.

(“Falcon”)

Full Year Results

27 April 2021 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce its financial results for the year ended 31 December 2020.

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 year ended 31 December 2020.

2020 Financial Highlights

• Strong financial position, debt free with cash of US$11 million at 31 December 2020 (31 December 2019: US$13.1 million).
• Continued focus on strict cost management and efficient operation of the portfolio.

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

Falcon has filed its audited financial statements for the year ended 31 December 2020, the accompanying MD&A for year ended 31 December 2020 dated 26 April 2021, its Annual Information Form (“AIF”) dated 26 April 2021 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.

CONTACT DETAILS:

Falcon Oil & Gas Ltd.	[phone]
Philip O'Quigley, CEO	[phone]
Anne Flynn, CFO	[phone]
Cenkos Securities plc ( NOMAD & Broker)
Neil McDonald / Derrick Lee	[phone]

Consolidated Statement of Operations and Comprehensive Loss

			Year Ended 31 December 2020 $’000	Year Ended 31 December 2019 $’000
Revenue
Oil and natural gas revenue			5	5
			5	5
Expenses
Exploration and evaluation expenses			(159)	(233)
Production and operating expenses			(12)	(13)
General and administrative expenses			(1,871)	(1,780)
Share based compensation			-	(12)
Foreign exchange gain / (loss)			105	(70)
			(1,937)	(2,108)
Results from operating activities			(1,932)	(2,103)
Fair value gain – outstanding warrant			110	369
Finance income			224	221
Finance expense			(231)	(226)
Net finance expense			(7)	(5)
Loss before tax			(1,829)	(1,739)
Taxation			-	-
Loss and comprehensive loss for the year			(1,829)	(1,739)
Loss and comprehensive loss attributable to:
Equity holders of the company			(1,830)	(1,739)
Non-controlling interests			1	-
Loss and comprehensive loss for the year			(1,829)	(1,739)
Loss per share attributable to equity holders of the company:
Basic and diluted			( 0.002 cent)	(0.002 cent)

Consolidated Statement of Financial Position

		At 3 1 December 2020 $’000	At 31 December 2019 $’000
Assets
Non-current assets
Exploration and evaluation assets		40,444	40,246
Property, plant and equipment		4	1
Trade and other receivables		23	30
Restricted cash		2,429	2,241
		42,900	42,518
Current assets
Cash and cash equivalents		11,036	13,066
Trade and other receivables		117	141
		11,153	13,207
Total assets		54,053	55,725
Equity and liabilities
Equity   attributable to owners of the parent
Share capital		392,170	392,170
Contributed surplus		45,075	45,075
Deficit		(395,173)	(393,343)
		42,072	43,902
Non- controlling interests		701	700
Total equity		42,773	44,602
Liabilities
Non- current liabilities
Decommissioning provision		10,563	10,331
		10,563	10,331
Current liabilities
Accounts payable and accrued expenses		717	682
Derivative financial liabilities		-	110
		717	792
Total liabilities		11,280	11,123
Total equity and liabilities		54,053	55,725

Consolidated Statement of Cash Flows

		Year Ended 31 December
		2020 $’000	2019 $’000
Cash flows from operating activities
Net loss for the year		(1,829)	(1,739)
Adjustments for:
Share based compensation		-	12
Depreciation		-	1
Fair value gain - outstanding warrant		(110)	(369)
Net finance loss		7	5
Foreign exchange (gain) / loss		(105)	70
Change in non-cash working capital:
Decrease / (increase) in trade and other receivables		31	(41)
(Decrease) / increase in accounts payable and accrued expenses		(145)	88
Net cash used in operating activities		(2,151)	(1,973)
Cash flows from investing activities
Interest Received		16	136
Exploration and evaluation assets		(48)	(541)
Property plant and equipment		(3)	-
Net cash used in investing activities		(35)	(405)
Cash flows from financing activities
Raised Equity		-	8,433
Net cash generated by financing activities		-	8,433
Change in cash and cash equivalents		(2,186)	6,055
Effect of exchange rates on cash & cash equivalents		156	44
Cash and cash equivalents at beginning of year		13,066	6,967
Cash and cash equivalents at end of year		11,036	13,066

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. 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.