The exploration company noted that it had US$13.1mln of cash at the end of 2019 and it was debt-free. Its position was further strengthened recently by a new additional farm-out transaction with Beetaloo partner Origin Energy, which secured funding cover for an expanded phase of work.
In the financial results, Falcon emphasised its continued focus on strict cost management. It also noted that general and administrative expenses decreased 7% year-on-year, to US$1.78mln.
Earlier this month, Falcon entered into the new Beetaloo transaction in which it is transferring a 7.5% participating interest in the Australian shale project in return for A$150mln of additional cost cover.
Previously, Origin Energy was committed to spend up to A$65.3mln gross in Stage 2 of the joint venture, and up to A$48mln in Stage 3 – now, the aggregate gross cost cap rises to A$263.8mln. Spending above A$263.8mln will be borne proportionally by the partners.
Falcon retains a 22.5% interest in the Beetaloo project following the latest farm-out, with Origin owning the other 77.5%.