Shale group Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) chief executive Philip O'Quigley told investors he is hopeful of a favourable outcome to the current hiatus in Australia, where there is presently a moratorium on fracking.
Drilling operations may resume “in the not too distant future”, according to O'Quigley.
In Falcon’s financial results for 2016, the company described a landmark year in which a major shale discovery in Australia’s Northern Territory - and, in February 2017, the size of the discovery was estimated ‘world class’ potential of 6.6 trillion cubic feet.
Falcon’s partner Origin Energy will complete a nine well exploration and appraisal programme, if the moratorium is lifted.
O'Quigley said: “2016 was a landmark year for our company with the first extended production test in the Beetaloo basin and the announcement of a material gas resource.
“Our 2017 drilling program is delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing, however we are hopeful of a favourable outcome and the resumption of drilling in the not too distant future."
Falcon reported a strong financial position, ending the year with US$10.1mln of cash.
The growth company, which has nominal revenue, reported a US$3.7mln loss for the year whilst noting that it reduced general and administrative expenses by 18% to US$2mln.