Thursday 24 May 2018

Falcon Oil & Gas reports 'strong' financial position

The Dublin-listed company reported a loss of $655,000 for the period (stock picture)
The Dublin-listed company reported a loss of $655,000 for the period (stock picture)
Ellie Donnelly

Ellie Donnelly

Falcon Oil & Gas has said it is in a 'strong' financial position, debt free, and with cash of US$8.5m (€7.1m) at 31 March.

In a three month trading update today, the Dublin-listed company reported a loss of $655,000 for the period, a substantial reduction on the loss of $2.9m reported for the same period in 2017, as it continues to focus on cost management and efficient operation of its portfolio.

The company had total assets of $50.1m at 31 March 2018, down slightly on the total assets of $51.2m at 31 March 2017.

Last month the company said that it expects serious drilling activity to begin in 12 months' time at its major prospect in Australia, where a government ban on fracking has been lifted, enabling the project to proceed.

The prospect, in Australia's Northern Territory, had been put into abeyance after the moratorium was established.

The ban was lifted in early April, but Falcon boss Philip O'Quigley said last month that a new permitting process put in place will take three to six months to complete.

In addition, monsoon-like weather will also delay the process, pushing a planned five-well programme back into 2019.

The programme will be carried out in conjunction with Falcon's partner in the project, Australian business Origin.

Australia is home to the world's sixth-biggest reserves of shale oil and seventh-largest of shale gas, and the vast, remote Northern Territory remains in the early stages of exploration.

The area "could have enough gas to serve Australia for almost 200 years", the nation's Resources Minister Matt Canavan said.

Australia, one of the world's biggest shippers of liquefied natural gas and coal, has struggled in recent years with fuel and power supplies as the nation tries to balance environmental concerns and domestic needs against revenue and jobs from energy exports.

(Additional reporting Bloomberg)

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business