Tuesday 20 August 2019

Falcon Oil & Gas to raise almost €9m to fund Australian drilling

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Ellie Donnelly

Ellie Donnelly

Dublin-headquartered Falcon Oil & Gas is looking to raise up to $10m (€8.9m) through a share placing.

Proceeds from the placing will be used to fund Falcon’s expenditure on the drilling and fracking of four horizontal wells in the Beetaloo Sub-basin, Australia.

The shares are being placed at a price of 14p (16 cent) per share.

The placing, which commences immediately, is being conducted through a bookbuilding process, which is being managed by Davy, RBC Capital Markets and Cenkos Securities.

Davy is also acting as nominated adviser and Euronext Growth advisor – for the purpose of the Euronext Growth Rules – to the company in connection with the placing.

Falcon has a joint venture with Origin Energy, operator of the Beetaloo licences, in Australia's Northern Territory.

Earlier this year the group said Origin Energy had signed a rig contract with Ensign Australia to cover stage two of its 2019 drilling campaign.

This will allow assessment of the liquid rich gas fairway targets in the Kyalla and Velkerri formations.

Last year Falcon reported a loss of $1.3m (€1.1m) for 2018, down from a loss of almost $4m (€3.5m) the previous year,

The group’s portfolio also includes projects in South Africa and Hungary.

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