Hi Boys, two parts below. One is an exercise (not for everyone), and the other ids the answers.

One of the hardest things to accomplish in life is independent thinking. It helps if one thinks one has aristocratic blood, are full of one self, think one is better than others, or if given the chance likes and enjoy to exercise raw power (my wife says I'm guilty on all counts). Those who don't get this frame of mind in a natural way, may perform the following exercise

Exercise

1. stand in fron t of a mirror, look angry, look at you directly in the eye, point a finger to yourself and say loudly and with conviction, You Are Fired ! you Agreeable <expletive> !!.

2. Once one has fired the aggreable person inside oneself, one may start to question what is said in NR's, and speeches, and other documents. Unless you are a natural and possess the four qualities mentioned above.

Reply to the Posters

Corter:

1. 10 to 40 acre spacing, surely you are not suggesting that there is something to worry about here, like the MOL-XOM JV stealing gas from the FO-XOM-MOL JV, at that distance it would not happen.

2. Exchange of information you say, my friend that is already happening. Look XOM is in both jv's, and MOL is in both JV's. FO is in one JV and is owner of 100% of part of the BCGA. MOL and XOM already will have the ability to be knowledgeable about all the information, except for that from the 100% owned lands.

3. Sweet spots, yes that is what we want, however the information already may flow freely between both JV's because MOL and XOM and in both. And Falcon is not doing anything for the time being with its 100% owned land. Now, if the Mako JV's pan out, those 100% owned lands become much more valuable in the future that they ever would in the present.

4. Economy of scales you say. I disagree, they work only if funds are limited or restricted, so that the few available coins can be spread as far and long as possible. If Mako is as good and wonderful as we think, the funds would be available. Nothing like a bit of competition to get the capitalistic, greedy feelings flowing. And talking about an entire BCGA what kind of economy of scales do you expect?, this is non-sense. Some of these swwet spots may be so far apart that it would not matter to be unitized. Oh... unless somebody know something and is not telling anyone, like having a whole bunch of possible seewt spots concentrated along the spine of the play, which happens to be in FO's ground.

Siverhound, regarding knowledge, please read read #2 above in reply to Corter

Lanman

1. The mining bureau making this a requirement, at this stage and with no public release?, I think not. The Bureau will stay out of a private enterprise business unless it absolutely needs to intervene, and we are far from being there, and I personally doubt it will ever get to that stage. MOL, FO and XOM have demonstrated they are perfectly capable to negotiate in their comon best interest.

2. "Falcon, ExxonMobil and MOL all recognize the significant potential benefits, from an operating efficiency and technical analysis standpoint, of combining all or a portion of their jointly-owned interest into one unit." Yes, that is what they say, and it is this what I am saying to you, stand back and think about it again. Look at it this way, say for example that a sweet spot is found in the MOL-XOM JV. It gets developed for X number of dollars and Y number of wells. Lets assume that another, different sweet spot is found in the FO-MOL-XOM JV, it too gets developed for X doolars and Y wells. If these two sewwt spots are far enough (and the distance can actually be quite close) unitization does not produce any advantage.

By the way, I never got to the 80 proof. Instead, I took a cup of hot tea, put honey and a 50% grape alcoholic beverage. Drank it and it put me to sleep like a baby. My cold/flu felt much better this morning.

So, Why unitize? Here are some ideas, A) XOM wants to spread their dollars and are looking at Mako as one play, rather than 3 different plays, in this way they are free to go whereever they want and may end up spending less in the end. B) Falcon thinks that the best chances of having sweet spots and good producing wells are in the MOL-XOM jv lands and in that way they get to be part of something (very unlike that FO would think that). C) MOL and XOM think that the best ground is going to be in the FO-MOL-XOM jv, and by unitizing they end up with a larger share of this ground (this is possible). D) It may be an easy way to get their hands on FO's 100% lands if FO is required to throw these lands in the unitization process.

db