The market warmed to a strong operational update from Falcon Oil & Gas (FOG), sending shares in the Australia-focused explorer up by more than 7 per cent on the day of the announcement. An in-depth shale evaluation program has revealed good continuity over a large proportion of the key Beetaloo Basin assets, including three organic rich shale intervals within the Middle Velkerri formation.
Falcon also confirmed that its 2016 drilling programme, which is fully carried by its partners Original and Sasol, includes testing of the gas productivity of the Amungee NW-1H well and civil works at the W-1 vertical. FinnCap analyst Dougie Youngson expects full-year results for 2015 to reveal an adjusted pre-tax loss of $3.9m (£2.65m) and a loss per share of 1¢.
Subsequent to this update Falcon released full-year financial results, which revealed little more than a 38 per cent decrease in general and administrative expenses to $2.5m and a year-end cash balance of $12.7m
