We need to see Falcon in a pragmatic way.

First, the sharp decline in Falcon's share price over the last two months closely mirrors the sharp decline in the Canadian stock market as a whole. This is no consolation. And an added proof that we are not alone is a comparison of Falcon with other broadly similar companies. For example MGM Energy (symbol MGX in the TSX (Toronto) exchange). This company has vast natural gas exploration properties in the Arctic and it has suffered a similar fate to our Falcon.

The latest analyst report giving the thumbs up to Falcon, is nice, but it is not a catalyst at this moment to move up the share price.

What will make our Falcon shares go up is nothing less and nothing more that a positive testing result of the Mako ground and with those news coming from Exxon itself. Since the JV was signed last Spring, the focus is on production.

We are a few months from the first real news, say in the Spring of 2009 at the latest, and more than a year for more conclusive news on the start of development activities. It will be a long wait, one I hope is going to be worthwile.

In the meantime, the share price could see added pressure downwards. Hopefully the company will not spend all of its cash in mis-adventures or expensive overhead. The emphasis should be in conserving cash for the moment, to wheather out the current credit crunch.

db