Dublin-based exploration firm Falcon Oil & Gas is on track to begin drilling three wells in Australia next year, it said as it released third-quarter results.

The company, which also has interests in South Africa and Hungary, said that it incurred a $4m loss in the nine months to the end of September, but ended the period with $18.4m in cash on its books, up from $8.4m at the end of last December.

Falcon is preparing to drill three wells in the Beetaloo Basin next year when the dry season begins.

It is partnered with Origin Energy Resources and Sasol on the project. Falcon chief executive Philip O'Quigley said he will update the market on the drilling when it commences. The company also said that the Petroleum Agency of South Africa is currently processing Falcon's application for a shale gas exploration licence in South Africa's Karoo Basin.

Falcon expects that South Africa's Department of Mineral Resources will issue the company with a licence in 2015 to explore for shale gas.

Irish Independent