Warrants / Convertible Securities / Certificates

FALCON ENERGY GROUP W131101

Last Date/ Time to submit Subscription Notice	02 NOV 2013 05:00 PM
For CDP Depositors, Last Date/ Time to submit Instruction Form	02 NOV 2013 05:00 PM
Listing Date	08 NOV 2010
Expiry Date	01 NOV 2013
Outstanding Balance	162,323,594
Price ($) as at 2013-09-10	0.003
High for the year ($)	0.066
Low for the year ($)	0.002
High for the month ($)	0.020
Low for the month ($)	0.002
Exercise Price	SGD 0.40000

Underlying Stock IBM Code	1Q49
Underlying Stock	FALCON ENERGY GROUP LIMITED
Underlying Stock Price ($) as at 2013-10-09	0.380
Conversion Ratio	1 warrant(s) : 1   share(s)
Cash ($)	0.000
Premium/(Discount) (%) (Cash)	6.05
Premium/(Discount) (%) (Bonds)
Gearing (x)	126.67

Remarks

WARRANT AGENT

Name	BOARDROOM CORPORATE & ADVISORY SVCS P/L

were listed and quoted on the Singapore Exchange Securities Trading Limited on 7 October 2013.

There are 162,323,594 outstanding warrants remaining after the aforesaid exercise.Company" ) wishes to

Falcon Energy Group - Getting a Lift in 2Q FY14

Written By Stock Fanatic on Wednesday, September 25, 2013 | 9/25/2013

We noted that Falcon Energy Group (Falcon) recently carried out some share buy-back activities and absorbed back approximately 2m shares (at an average daily price of between 34.8 cts and 37.2 cts) from the open market this month. This seems to be a signal from the management that Falcon?s current share price is not justified.

The move may be partially explained by the recent sale of its two 45.5% owned Gusto MSC CJ46-X100 jack-up rigs at an estimated price of US$225m each last month. These two rigs have a cost of roughly US$196m each, assuming interest cost, agency fees and others. 

Netting off the figures, the transaction works out to an attributable profit of US$26m which Falcon will probably recognize in its upcoming 2Q results.

On the marine division, we expect the company to deploy its 2X 78m multi-functional support vessels over the next two months and these vessels are capable of generating bareboat annual revenue of US$9+m each, if fully deployed. We also expect charter rates for the other vessels to be healthy given current high energy prices and active drilling programmes. We now estimate utilization rate for the remaining FY2014 to be around 80%. 

Contributions from associates will probably cutback to below US$1m following the recent write-down in its 29% owned CH Offshore and lower chartering revenue. 

Nonetheless, we expect the marine division to lead the group in profitability and Falcon may generate US$5m, US$7m and US$7m PAT for the next three quarters. We leave our estimates for the oilfield services and oilfield projects intact and assume negligible contribution from the resource division. 

In view of the positive outlook, we now revise our intrinsic value to S$0.550 per share. Maintain Increase Exposure.

Falcon?s share price has also recovered to near its one-year high level of S$0.42 per share. As of end June 2013, Falcon has 162.8m outstanding warrants with an exercise price of S$0.40 per share. The last conversion date for the warrant is 1 Nov 2013.  (Read Report)