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.
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.