Bay Street News

Falcon Oil & Gas Ltd – Full Year Results

FALCON OIL & GAS LTD.

(“Falcon)

Full Year Results

26 April 2024 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce its financial results for the year ended 31 December 2023.

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 2023.

2023 Financial Highlights

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

Falcon has filed its audited financial statements for the year ended 31 December 2023, the accompanying MD&A for year ended 31 December 2023 dated 25 April 2024, its Annual Information Form (“AIF”) dated 25 April 2024 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.sedarplus.ca. The audited financial statements, MD&A and AIF are also available on Falcon’s website www.falconoilandgas.com.

CONTACT DETAILS:

Falcon Oil & Gas Ltd.          +353 1 676 8702
Philip O’Quigley, CEO +353 87 814 7042
Anne Flynn, CFO +353 1 676 9162
 
Cavendish Capital Markets Limited (NOMAD & Joint Broker)  
Neil McDonald / Adam Rae +44 131 220 9771
   
Tennyson Securities (Joint Broker)  
Peter Krens +44 20 7186 9033
   

Consolidated Statement of Operations and Comprehensive Loss

      Year Ended
31 December 2023
$’000
Year Ended
31 December 2022
$’000
         
Revenue        
Oil and natural gas revenue    
     
         
Expenses        
Exploration and evaluation expenses     (197) (151)
General and administrative expenses     (2,470) (2,865)
Decommissioning provision     (480) (825)
Foreign exchange loss     (63) (138)
      (3,210) (3,979)
         
Results from operating activities     (3,210) (3,979)
         
Finance income     322 298
Finance expense     (453) (310)
Net finance expense     (131) (12)
         
Loss before tax     (3,341) (3,991)
         
Taxation    
         
Loss and comprehensive loss for the year     (3,341) (3,991)
         
Loss and comprehensive loss attributable to:        
         
Equity holders of the company     (3,337) (3,994)
Non-controlling interests     (4) 3
         
Loss and comprehensive loss for the year     (3,341) (3,991)
         
Loss per share attributable to equity holders of the company:        
Basic and diluted     ($0.003) ($0.004)

Consolidated Statement of Financial Position

    At 31 December
2023
$’000
At 31 December
2022
$’000
       
Assets      
Non-current assets      
Exploration and evaluation assets   51,287 42,977
Property, plant and equipment   2 7
Trade and other receivables   26 20
Restricted cash   2,176 2,090
    53,491 45,094
       
Current assets      
Cash and cash equivalents   7,992 16,785
Trade and other receivables   54 79
    8,046 16,864
       
Total assets   61,537 61,958
       
Equity and liabilities      
       
Equity attributable to owners of the parent      
Share capital   402,120 402,120
Contributed surplus   47,379 47,063
Deficit   (407,197) (403,860)
    42,302 45,323
Non-controlling interests   697 701
Total equity   42,999 46,024
       
Liabilities       
Non-current liabilities      
Decommissioning provision   16,204 15,602
    16,204 15,602
       
Current liabilities      
Accounts payable and accrued expenses   2,334 332
    2,334 332
       
Total liabilities   18,538 15,934
       
Total equity and liabilities   61,537 61,958

Consolidated Statement of Cashflows

    Year Ended 31 December
    2023
$’000
2022
$’000
       
Cash flows from operating activities      
Net loss for the year   (3,341) (3,991)
Adjustments for:      
Share based compensation   316 809
Depreciation   5 5
Net finance loss   120 22
Foreign exchange loss   63 138
Decommissioning provision   480 825
Change in non-cash working capital      
Decrease / (increase) in trade and other receivables   19 (5)
Decrease in accounts payable and accrued expenses   (63) (64)
Net cash used in operating activities   (2,401) (2,261)
       
Cash flows from investing activities      
Interest received   180 33
Exploration and evaluation assets additions   (6,723) (88)
Granting of ORRI to Sheffield Holdings LP   6,000
Exercising of TOG Group call option   (6,000)
Net cash used in investing activities   (6,543) (55)
       
Cash flows from financing activities      
Proceeds from private placement   10,000
Costs related to private placement   (50)
Net cash generated from financing activities   9,950
       
Change in cash and cash equivalents   (8,944) 7,634
Effect of exchange rates on cash and cash equivalents   151 257
Cash and cash equivalents at beginning of year   16,785 8,894
       
Cash and cash equivalents at end of year   7,992 16,785

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.sedarplus.ca

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