Global oil and gas group Falcon experienced a “landmark” year in 2016, according to chief executive Philip O’Quigley.
The Dublin-headquartered firm successfully completed the drilling of the Beetaloo well in the Northern Territory of Australia to a total depth of 3,173metres with “very encouraging results”.
Hydraulic stimulation of the horizontal Amungee NW-1H well was also completed, indicating a material gas resource.
However completion of the nine well exploration and appraisal programme will be delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing.
Processing of Falcon’s exploration license application in South Africa’s Karoo Basin continues to progress and the South African Department of Mineral Resources is expected to issue licences in 2017.
The firm remained debt free with cash of US$10.1 million at 31 December 2016.
General and administrative expenses decreased 18% year on year to $2.0 million.
Total net loss for the year 2016 was $3.6million. The bulk of this came from cash going into operating activities.
CEO O’Quigley said: “2016 was a landmark year for our company with the first extended production test in the Beetaloo basin and the announcement of a material gas resource.
“Our 2017 drilling program is delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing, however we are hopeful of a favourable outcome and the resumption of drilling in the not too distant future.”