Falcon Oil & Gas Ltd. - Full Year Results

• Event: Full Year Financial Results for fiscal year ended December 31, 2025.
• Financial Performance: Net loss improved to $2.596 million from $2.965 million in 2024. Revenue remains zero (exploration stage).
• Cash Position: Cash and cash equivalents decreased significantly to $1.3 million as of December 31, 2025, down from $6.8 million at end of 2024.
• Transaction Status: Definitive agreement with Tamboran Resources Corporation is progressing; expected closing in the second quarter of 2026 (delayed from previous Q1 expectations).
• Expenses: General and Administrative expenses increased to $2.35 million vs $2.03 million in 2024. Exploration and evaluation expenses decreased slightly to $187,000.

• Deal Confirmation: The news confirms the acquisition by Tamboran is still active but extends the closing timeline from Q1 (March) to Q2 (April/May/June). This aligns with previous court delay updates in March 2026 regarding sanctioned shareholders and Lamesa Holding opposition.
• Cash Burn Risk: The cash balance of $1.3 million is concerning given operating cash burn of $2.4 million last year, though the deal provides $23.7 million cash consideration to Falcon which mitigates immediate solvency risk upon closing.
• Valuation Context: The acquisition premium (19.7% over Sept 2025 price) was largely priced into the stock rally from $0.18 to $0.41 in early 2026. This earnings release does not introduce new upside catalysts beyond the pending deal closure.
• Market Reaction: The stock has consolidated around $0.31 since the March peak, suggesting the market views this as expected information rather than a surprise. No material price movement is anticipated solely from these financial results absent a change in deal terms.

• Company: Falcon Oil & Gas Ltd., AIM listed company with assets in Australia, South Africa, Hungary, and Ireland.
• Flagship Project: Shenandoah South Pilot Project in the Beetaloo Sub-basin (Northern Territory, Australia).
• Project Status: Drilling completed for 2025 wells; stimulation program initiated on SS2-1H well. Flow test achieved 10.3 MMcf/d IP20 rate.
• Gas Sales Agreement: Contracted to supply 40 MMcf/d to the Northern Territory Government, with sales expected to commence in Q3 2026.
• Operational Partner: Joint Venture partner Tamboran Resources Corp. is executing drilling and stimulation; Falcon has reduced its participating interest in 2025 wells to 0% (no cost exposure).