The Board of Directors of Falcon Energy Group Limited has served termination notice to FTS Derricks in relation to the construction contract of the Mobile Offshore Self-elevating Drilling Unit, TS Topaz (Hull No. B358). It is understood that rig is one of the five jack-up rigs being sold to Borr Drilling Limited, of which rig is of a higher model and different specifications from the other four rigs. The Company is reviewing the situation and in discussion with the Builder to bring the matter to a conclusion. The Company has an effective interest of 25% in the rig and expects to write off $11.36 million that was paid to the Builder as Deposit in the financial year ending 30 June 2018.