Falcon Oil & Gas Ltd. - Full Year Results

FALCON OIL & GAS LTD.

(“Falcon”)

Full Year Results

28 April 2022 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce its financial results for the year ended 31 December 2021.

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 2021.

2021 Financial Highlights

• Strong financial position, debt free with cash of US$8.9 million at 31 December 2021 (31 December 2020: US$11 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 2021, the accompanying MD&A for year ended 31 December 2021 dated 27 April 2022, its Annual Information Form (“AIF”) dated 27 April 2022 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 2021 $’000	Year Ended 31 December 2020 $’000
Revenue
Oil and natural gas revenue			2	5
			2	5
Expenses
Exploration and evaluation expenses			(196)	(159)
Production and operating expenses			-	(12)
General and administrative expenses			(3,031)	(1,871)
Decommissioning provision			(991)	-
Foreign exchange (loss) / gain			(238)	105
			(4,456)	(1,937)
Results from operating activities			(4,454)	(1,932)
Fair value gain – outstanding warrant			-	110
Finance income			7	224
Finance expense			(249)	(231)
Net finance expense			(242)	(7)
Loss before tax			(4,696)	(1,829)
Taxation			-	-
Loss and comprehensive loss for the year			(4,696)	(1,829)
Loss and comprehensive loss attributable to:
Equity holders of the company			(4,693)	(1,830)
Non-controlling interests			(3)	1
Loss and comprehensive loss for the year			(4,696)	(1,829)
Loss per share attributable to equity holders of the company:
Basic and diluted			($ 0.00 5 )	($0.002)

Consolidated Statement of Financial Position

		At 31 December 20 2 1 $’000	At 31 December 2020 $’000
Assets
Non-current assets
Exploration and evaluation assets		40,197	40,444
Property, plant and equipment		13	4
Trade and other receivables		22	23
Restricted cash		2,239	2,429
		42,471	42,900
Current assets
Cash and cash equivalents		8,894	11,036
Trade and other receivables		74	117
		8,968	11,153
Total assets		51,439	54,053
Equity and liabilities
Equity attributable to owners of the parent
Share capital		392,170	392,170
Contributed surplus		46,254	45,075
Deficit		(399,866)	(395,173)
		38,558	42,072
Non-controlling interests		698	701
Total equity		39,256	42,773
Liabilities
Non-current liabilities
Decommissioning provision		11,775	10,563
		11,775	10,563
Current liabilities
Accounts payable and accrued expenses		408	717
		408	717
Total liabilities		12,183	11,280
Total equity and liabilities		51,439	54,053

Consolidated Statement of Cash Flows

		Year Ended 31 December
		20 2 1 $’000	2020 $’000
Cash flows from operating activities
Net loss for the year		(4,696)	(1,829)
Adjustments for:
Share based compensation		1,179	-
Depreciation		4	-
Fair value gain - outstanding warrants		-	(110)
Net finance loss		242	7
Foreign exchange loss / (gain)		238	(105)
Transfer of Canadian working interests		(28)	-
Decommissioning provision		991	-
Change in non-cash working capital
Decrease in trade and other receivables		44	31
Increase / (decrease) in accounts payable and accrued expenses		67	(145)
Net cash used in operating activities		(1,959)	(2,151)
Cash flows from investing activities
Interest received		7	16
Exploration and evaluation assets		(163)	(48)
Property plant and equipment		(13)	(3)
Net cash used in investing activities		(169)	(35)
Change in cash and cash equivalents		(2,128)	(2,186)
Effect of exchange rates on cash and cash equivalents		(14)	156
Cash and cash equivalents at beginning of year		11,036	13,066
Cash and cash equivalents at end of year		8,894	11,036

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.