2015 Highlights:

Operational

  • Commencement of the Australian nine well exploration and appraisal programme, with the drilling of Kalala S-1, Amungee NW -1 and Amungee NW-1H with our joint venture partners Origin.

    • Resources Limited (Origin) (35%) and Sasol Petroleum Australia Limited (Sasol) (35%).

  • Acceleration of Australian drilling programme with first horizontal well (Amungee NW-1H) brought forward to 2015.
  • Encouraging results from the drilling of the first three Australian wells indicating favourable shale properties with excellent gas shows indicating the likelihood of high levels of gas saturations.
  • Preparation for 2016 Beetaloo Basin Australia, drilling programme at an advance stage.
  • Processing of Falcon’s exploration license application in South Africa’s Karoo Basin continues to progress and the South African Department of Mineral Resources (DMR) is expected to issue licences in 2016.
  • Conclusion of the termination agreement with Naftna Industrija Srbije jsc (NIS). NIS paid Falcon US$3.7 million in December 2015 in fulfilment of its contractual obligations.

    • Financial

  • Strong financial position, debt free with cash of US$12.7 million at 31 December 2015.
  • Continued focus on strict cost management and efficient operation of the portfolio.
  • General & administrative expenses decreased 38% year on year to US$2.5 million (31 December 2014: US$4 million).

    • Philip O’Quigley, CEO of Falcon Oil & Gas commented:

    “Operationally it has been a busy twelve months for Falcon, with the drilling of the joint venture’s first three wells in the Beetaloo Basin.

    Results have been encouraging with excellent gas shows encountered signalling the likelihood of high level of gas saturation which is a strong indication of the potential prospectively.

    As announced yesterday, planning and preparation is underway for our 2016 Beetaloo basin programme. We look forward to updating the market as this progresses.

    We continue to make solid progress in South Africa and were encouraged with the recent confirmation by the Petroleum Agency of South Africa that it expects to finalise a recommendation to the Minister of Mineral Resources on Falcon’s application for a shale gas exploration licence in South Africa’s Karoo Basin, by May 2016.

    We remain optimistic on securing a shale gas exploration licence in South Africa’s Karoo Basin in 2016.

    Falcon is uniquely placed in this challenging oil price environment with its strong cash position, fully funded drilling programme and high quality assets.

    With our fully funded 2016 Australian drilling campaign on track to commence next month and a decision expected from the South African DMR later this year, Falcon’s shareholders can look forward to another exciting year of exploration activity which has the potential to transform the value of your company.”


    Adapted from a press release by Louise Mulhall