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Falcon Oil & Gas results confirm strong financial position

The company's position was recently bolstered by a new farm-out deal

Falcon Oil & Gas Ltd - Falcon Oil & Gas results confirm strong financial position

Falcon Oil & Gas Ltd (LON:FOG) highlighted its strong financial position as it released its results for the twelve months ended December 31, 2019.

The exploration company noted that it had US$13.1mln of cash at the end of 2019 and it was debt-free. Its position was further strengthened recently by a new additional farm-out transaction with Beetaloo partner Origin Energy, which secured funding cover for an expanded phase of work.

READ: Falcon agrees new A$150mln farm-out at Beetaloo

In the financial results, Falcon emphasised its continued focus on strict cost management. It also noted that general and administrative expenses decreased 7% year-on-year, to US$1.78mln.

Earlier this month, Falcon entered into the new Beetaloo transaction in which it is transferring a 7.5% participating interest in the Australian shale project in return for A$150mln of additional cost cover.

Previously, Origin Energy was committed to spend up to A$65.3mln gross in Stage 2 of the joint venture, and up to A$48mln in Stage 3 – now, the aggregate gross cost cap rises to A$263.8mln. Spending above A$263.8mln will be borne proportionally by the partners.

Falcon retains a 22.5% interest in the Beetaloo project following the latest farm-out, with Origin owning the other 77.5%.

Quick facts: Falcon Oil & Gas Ltd

Price: 7.6 GBX

AIM:FOG
Market: AIM
Market Cap: £74.62 m
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