Falcon Oil in ‘strong financial position’

Irish onshore exploration company Falcon Oil and Gas has reported itself debt free and in “a strong financial position” ahead of a ruling on whether or not a ban on the practice of fracking in the area of Australia where one of its major assets lies will be lifted.

Falcon Oil in ‘strong financial position’

The Dublin-based company — headed by former Providence Resources finance director Philip O’Quigley — owns 30% of the Beetaloo Basin shale gas field situated in Australia’s Northern Territory, one of the world’s largest ‘unconventional’ gas fields and roughly 100 times the size of the Corrib gas field off the west coast of Ireland.

If fracking is allowed the path would be clear for Falcon and its Australian partner Origin to further develop the asset, with the Australian firm footing the bill as agreed in the two parties’ initial farm-out deal.

Falcon — which is due to hold its AGM in Dublin next month — yesterday produced figures for the first six months of this year.

Losses for the period increased, year-on-year, to just over $3.2m (€2.7m) from $2.3m a year earlier.

The company generated a revenue of just $5,000 for the first half, up from $1,000 a year earlier. However, of more note was the fact that Falcon closed the first half of the year in a debt-free position and with cash of $9.7m to hand.

Management also said that it continues to focus on “strict cost management and efficient operation of the portfolio”.

Shares in the company — which also has assets in Hungary and South Africa — were unmoved at 25c in Dublin yesterday.

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