Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Falcon Oil & Gas in strong financial position to advance its projects

Falcon Oil & Gas narrowed its first-half loss as it continued to focus on tight cost control
falcon oil
Falcon says the Beetaloo Basin in Australia has shale oil and gas commercial potential

Falcon Oil & Gas Ltd (LON:FOG) revealed on Thursday that is in a strong financial position to advance its projects.

The oil and gas company ended the first six months of the year debt-free with cash of US$7.7mln.

Its loss narrowed to US$1.2mln from US$3.2mln the same period a year ago as it continued to focus on tight cost control, cutting its expenses to US$1.2mln from US$1.3mln. Total assets stood at US$49.9mln and revenues came to US$3,000.

In a separate management discussion and analysis statement, the company said the Beetaloo Basin in Australia’s Northern Territory remains “relatively under-explored” and has shale oil and shale gas commercial potential.

Operator Origin Energy has identified four additional potential plays in the Beetaloo sub-basin in addition to the existing and explored Velkerri shale dry gas play.

In August Falcon and Origin agreed to accelerate exploration activity for the Beetaloo shale project.

READ: Falcon Oil & Gas and Origin Energy agree to ramp-up Beetaloo activity

Together they now deem the Stage 1 campaign to be complete, essentially meaning that in light of the 2014 successes – drilling three vertical wells and one horizontal, fracture stimulated well – that it is now appropriate to move ahead.

With the launch of the Stage 2 campaign the partners are increasing the ‘cost cap’ (i.e. the portion of costs covered by Falcon’s farm-out deal with Origin) by A$15mln, with the programme now comprising two horizontal, fracture stimulated wells and will not include the fracking of a vertical well.

In South Africa, Falcon said it expects the exploration right over the acreage in the Karoo Basin will be awarded in 2019. Karoo Basin about 173 million acres and contains thick, organic-rich shales such as the Permian Whitehill formation.

Falcon is also continuing to review its operations in Hungary, which includes the Makó Trough, to deliver shareholder value. 

View full FOG profile View Profile

Falcon Oil & Gas Ltd Timeline

Related Articles

1532936443_uranium.jpg
October 02 2018
The Salamanca project retains considerable support locally
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
September 20 2018
Spirit Energy, majority-owned by British Gas parent Centrica, is to fund a programme of new wells and cover Hurricane's costs for initial field development work for the Greater Warwick Area

© 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