Falcon Oil & Gas Ltd. Interim Results for Nine Months Ended 30 September 2013
(firmenpresse) - DUBLIN, IRELAND -- (Marketwired) -- 11/28/13 -- Falcon Oil & Gas Ltd. (TSX VENTURE: FO) (AIM: FOG) (ESM: FAC) ("Falcon") announces its results for the nine months ended 30 September 2013.
The following should be read in conjunction with the complete Interim Financial Statements and the accompanying Management's Discussion and Analysis for the nine months period ended 30 September 2013 filed with the TSXV. These filings are available at and on Falcon's website at .
Highlights
Philip O'Quigley, CEO of Falcon commented:
"As expected, we have had an extremely busy start to the second half of 2013. Our attention is focused on securing a new farm-out of our acreage in Australia, preparing for the testing of the Kutvolgy-1 well in Hungary and working with Chevron under our Cooperation Agreement in South Africa. We are delighted to report that progress to date on all of these fronts is in line with our expectations."
Australia
Farm out discussions advancing in Australia
Further to the announcement on 1 July 2013, Falcon has been approached by several oil and gas companies interested in farming into its assets in the Beetaloo Basin. Falcon is well advanced in its discussions with a number of those companies and is confident of securing an attractive farm - out with a large oil and gas company. Falcon will provide an update to the market when appropriate.
Consolidation of interest in Australian subsidiary
Falcon completed the acquisition of a 25.4% minority interest in its subsidiary Falcon Oil & Gas Australia Ltd ("Falcon Australia"). Falcon Australia is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion of the above transaction, Falcon holds 202,462,686 shares in Falcon Australia, representing 98.1% of its issued share capital.
Results of Seismic Program in Beetaloo Basin, Australia
Under the terms of the joint venture with Hess, in 2011 and 2012, Hess acquired 3,490 kilometres of 2D seismic data and invested approximately US$80 million during that period, substantially more than initially expected and at no cost to Falcon. The seismic database has now been passed on to Falcon and along with existing well data, provides a very solid platform to extrapolate a detailed structural and stratigraphic model for the main parts of the Beetaloo Basin.
All the necessary elements of a productive unconventional and conventional petroleum system have been identified in multiple shales and sand reservoirs, and it is now clear that the Beetaloo Basin is an active petroleum system.
Three hydrocarbon plays have been identified:
Recent interpretation of the seismic database mapped out several conventional drilling targets that are promising areas of hydrocarbon accumulation in the form of structural closures and traps.
Reducing the Overriding Royalty, Beetaloo Basin, Australia
On 1 November 2013, Falcon announced that Falcon Australia, had entered into an agreement with CR Innovations AG ("CRIAG") to acquire its 4% Overriding Royalty Interest ("ORRI") relating to its exploration permits in the Beetaloo Basin ("the CRIAG Agreement"). The transaction details were:
Falcon believes that this transaction should help to further progress the farm - out negotiations, which are at an advanced stage. Together with the significant seismic programme completed last year, this transaction further increases the value of the Group's assets in the Northern Territory.
Hungary Drilling
Drilling operations on the first joint well between NIS and Falcon, Kutvolgy-1 well were completed in July 2013, the well having reached total depth ("TD") of 3,305 metres. As anticipated, the top of the Algyo Formation was encountered at 2,985 metres; the well then penetrating an alternating sequence of sandstones, siltstones and shales over a gross interval of 320 metres to TD, with gas shows throughout. Two conventional cores were taken and extensive wireline logs were run. As planned the well has been cased to TD and is now suspended. The operations were conducted to a high standard with no accidents occurring during drilling.
Technical evaluation of the well results has been concluded and preparations are now well underway to complete and test this well. The process will involve conventional testing of up to 8 gas bearing intervals as a first phase. A decision on whether hydraulic fracturing of the penetrated tight sands is required will be made upon evaluating the results of conventional flow tests. We expect technical operations to commence in January 2014.
Preparations for drilling the second well have commenced. Actual drilling operations on this well are expected to start in Quarter 1 of 2014.
Results for operating activities
Falcon incurred a loss of US$3.7 million in the nine months ended 30 September 2013, decreased from a loss of US$16.6 million in the nine months ended 30 September 2012.
Falcon's cash and cash equivalent balance at 30 September 2013 was US$10.8 million (31 December 2012: US$2.9 million).
About Falcon Oil & Gas Ltd.
Falcon is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South Africa and Hungary. Falcon is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.
For further information on Falcon Oil & Gas Ltd. please visit .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may constitute forward-looking information, including comments made with respect to when payments due under the CRIAG agreement will be made, the ability to secure a new farm- out partner in Australia and the expected timeframe for drilling operations and testing in Hungary. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Falcon.
Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian securities regulators, which filings are available at .
Contacts:
Falcon Oil & Gas Ltd.
+353 1 417 1900
Falcon Oil & Gas Ltd.
Philip O'Quigley
CEO
+353 87 814 7042
Falcon Oil & Gas Ltd.
John Craven
Non-Executive Chairman
+353 1 417 1900
FTI Consulting
Edward Westropp
+44 207 269 7230
FTI Consulting
Natalia Erikssen
+44 207 269 9348
Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell
+353 1 679 6363
GMP Securities Europe LLP (Joint Broker)
Rob Collins / Alexandra Carse
+44 20 7647 2800
Cantor Fitzgerald Europe (Joint Broker)
David Porter / Richard Redmayne
+44 207 894 7000
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Datum: 28.11.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 320975
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DUBLIN, IRELAND
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Oil & Gas
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