Falcon is a global energy company with projects in Hungary, Australia & South Africa
Developing large acreage positions of unconventional and conventional oil and gas resources
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Proactive Investors...
On the earnings front, Falcon Oil & Gas (LON:FOG) was supported by a set of encouraging first half results.
The group managed to shrink its loss to US$3.2mln in the six months ended 30 June 2013, compared to a loss of US$6.4mln in the first half of 2012.
The company’s CEO Philip O’ Quigley expects the second half to be even busier than the first. He said the group’s attention has now switched to securing a new farm-out on their acreage in Australia, preparing for the testing of the Kutvolgy-1 well in Hungary and working with Chevron under our Cooperation Agreement in South Africa.
http://www.proactiveinvestors.co.uk/companies/market_reports/60509/thursdays-movers-shaft-sinkers-aminex-bullabulling-gold-falcon-oil-gas-arian-silver-kalimantan-gold-60509.html
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Davy Research...
Interim results wrap-up
DAVY VIEW
Falcon’s interim results demonstrate a busy first six months of the year. They also highlight that the second half of the year will be very important in the group's development
Focus on funding, Hungary and Australia
The first six months of the year focussed on a number of areas. The group was re-capitalised through a $26m funding, which allowed payment of an outstanding convertible loan note of CDN$10.7m. It completed a farm-out and commenced a drilling programme with NIS in Hungary.
Lastly, its net acreage position in the Beetaloo basin in Australia has been increased through the purchase of the 24% minority holding in its Australian subsidiary. Falcon now has a 96.9% stake in this company, which is the holder of four permits with substantial unconventional and conventional prospects. These licences were formerly the subject of an option/farm-in deal with Hess. A request to extend this option was rejected by Falcon and Hess subsequently elected not to proceed. This decision not to proceed with the farm-out is seen as an opportunity by Falcon management, which remains confident that a follow-up deal can be completed.
With a comfortable cash cushion, the prospect of a follow-on deal in Australia and progress expected in its African project, we believe the stock warrants an ‘Outperform’ rating.
http://www.davy.ie/davy/article.htm?id=Davy_Morning_Equity_Briefing_29082013_moneBLinkS0016C0002Cmp.htm
6 Recommendations
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