Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) confirmed its strong financial position as it released interim results for the six months ended June 30.
It ended the period with US$11.8mln of cash and it was debt free. The pre-revenue firm reported a US$199,000 profit for the period due as its numbers were boosted by finance income of US$874,000.
The company said it continues to focus cost management and the efficient operation of its portfolio.
READ: Falcon looks forward to start of fracking in Kyalla well
Earlier this month, Falcon told investors it expects that fracture stimulation of Kyalla 117 well would start in the coming weeks.
Kyalla 117, at the Beetaloo project in Australia’s Northern Territory, was drilled successfully in February. The initial data confirmed good reservoir continuity, conductive natural fractures and continuous gas shows. Operations were suspended in March due to the COVID-19 pandemic.
The fracking programme for Kyalla 117 will happen in the third and fourth quarters, followed by a production test starting later in the fourth quarter.
Results of the test are likely to come in the first quarter of 2021, Falcon added.
Additionally, in today’s statement, Falcon noted that in July it agreed a further extension to the call option to acquire its 22.5% portion of the 2% ORRI from the TOG Group, setting a new deadline of April 2022. Falcon pays US$150,000 to TOG for the additional extension.