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Falcon Oil & Gas boasts strong financial position as it awaits Australia fracking decision

Sentiments were significantly lifted late March as a scientific report concluded that fracking risks could be managed in Australia's Northern Territory but the regional government has yet to decide on the future of fracking
oil and gas operations
Falcon ended 2017 with US$9mln of cash

Falcon Oil & Gas Ltd (LON:FOG) has boasted that it has a “strong financial position” as it awaits a pivotal, official decision from the authorities in Australia’s Northern Territory.

The junior oil and gas firm has a stake in a significant shale gas discovery in the Northern Territory though quickly after breakthrough success, progress was hindered by a moratorium on fracking, but, a scientific review recently boosted expectations.

In late March, a scientific inquiry into hydraulic fracturing commissioned by the region's government concluded that the inherent risks of the controversial oil and gas extraction method can be mitigated, reduced to an acceptable level or in some cases eliminated entirely.

READ: Scientific report says fracking risks can be managed

The inquiry chair, Justice Rachel Pepper said: "It was not the role of the Inquiry to recommend whether the moratorium on hydraulic fracturing in the Northern Territory be lifted, that is a political decision that rests with the Government alone."

Falcon and its investors continue to wait on news from the Northern Territory.

In the meantime, the company’s financial results statement for 2017 has confirmed the group’s strong position, with some US$9mln of cash on account at the end of December.

The company added that it had continued to focus on strict cost management during the Australian hiatus, with general and admin expenses reducing by 3% year-on-year to US$1.98mln.

Falcon reported a US$3.99mln loss for the year.

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