Proactive Investors - Run By Investors For Investors

Falcon Oil & Gas confirms strong financial position as Aussie fracking hiatus continues

Falcon said it ended its first half in a strong financial position, with US$10.1mln of cash and no debt.
Onshore oil well
Falcon's share of future costs is covered by partner Origin Energy

Financial results from Falcon Oil & Gas Ltd (LON:FOG) reflect that the company is being prudent amid the current hiatus.

The company’s main asset, a stake in a significant new Australian shale discovery, is effectively on hold at the moment as there is presently a moratorium on fracking in the Northern Territory.

Falcon today highlighted that it ended its first half, six months to March 31, with a strong financial position – with US$10.1mln of cash and no debt.

It added that the focus on strict cost management continued. The company reduced general and administrative expenses by 12% compared to the previous period, with the tally standing at US$477,000 for the six months.

Falcon’s share of future exploration and development costs are being covered by majority partner Origin Energy, which recently bought out fellow partner Sasol.

The partner’s stake in the project doubled to 70% as a result of the deal, while AIM-quoted Falcon retains the other 30%.

Origin recently outlined a very significant potential resource in the shale discoveries made by recent wells – it estimated some 6.6 trillion cubic feet of gas resources and said there could be as much as 496 TCF which would be 82bn barrels of oil - though operations on the ground are on hold, as there’s presently a moratorium on fracking in the Northern Territory.

View full FOG profile View Profile

Falcon Oil & Gas Ltd Timeline

Related Articles

oil and gas operations
November 12 2018
“The shares have been range bound recently, however, we believe that CERP now has a stronger platform for achieving its combined organic and acquisitive growth strategy"
oil and gas operations
July 03 2018
Analyst Ashley Kelty highlighted what could be characterised as favourable environment and opportunity for Rose Petroleum
oil and gas operations
August 02 2018
The agreement includes up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest in the Ruvuma PSA, which would include the Ntorya project

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use