Quoted comments about Marc Bruner, Falcon Oil & Gas the company, Management, etc. etc. From one of THE most respected members of the I.V. Falcon Oil & Gas Board ------- ~Beamreach~

Regarding RC's posts, I disagree. To my great dismay, RC's been right far more often than not, and far from just mere bashing, RC time and time again brings up relevant negative information. If he ever decided to buy back in, it would likely be an outstanding time to double one's position.

I think RC brings up a very valid point that maybe the "pump is on". We have been dormant, without news, for quite some time. With news, I think it's fair to say we might see some promotion. It's a guarantee as long as Bruner is CEO, which should be regarded as a reason to be on guard and wary. I am hopeful the board will move him gracefully to the side - if they do not, I and many others will likely exit the stock, resource or no, losses or no. As we've seen to date, poor management trumps a great resource. There's no reason to believe Falcon will exhibit competent management while Bruner remains as CEO.

====================================...

With the exception of Dr. Szabo, who I believe to be highly honorable, I'd conduct a thorough housecleaning, and replace the CFO, CEO, and COO, in that order. Keep MAB in place while the JV work continues, otherwise there's a risk of confusion and delay. However, I think it'd be fair game to announce MAB's intention to step aside once the JV's signed, clearing the way for finding a fully qualified managing director. By also getting rid of the CFO and COO, this would give a new managing director free rein to get Falcon's house in true working order. Any remaining Bruner hacks should be eliminated out of hand, competent or not, so as to brook no behind the scenes interference by Bruner. Like the movie, they all have to be eliminated, as it's the only way to be sure.

====================================...

think the possibility that Bruner would prevaricate about his intentions to step down needs to be considered seriously, as Bruner has shown over and over again a tendency to say what he thinks the market wants to hear. He may be capable of sufficient self-delusion to believe all will be forgiven once there's a JV, or once there are flows, so he can then be "persuaded to stay". Unfortunately, he has given far too much of at least the appearance of impropriety for the damage to his reputation to be readily repaired, even by good fortune. He needs to leave, and it's highly likely, given all the rumors, that he's indicated he will do so in the near future. However, I think RC is right to point out that we can only count on the reality of the moment, that Bruner remains as CEO, and must be assumed, until he steps down, to be in charge, with all the perils for shareholder value that portends.

====================================...

I see the same number, $2MM/month, based on the previous two quarters, which is why I thought they'd be out of cash by now if they hadn't received the pp. "Captain Tassles" appears to be worth about $500K/month of that, with "promotional" activities, plus his absurd salary. (They should pay him $1 a year, with maybe some options priced at $5 or so.)

====================================...

Make no mistake, I believe Bruner to be an utter cad, totally unethical. However, I also believe that this is a generally known view, so the recent private placement gives me reason to wonder what the heck's going on behind closed doors. I don't know, so it's safest to assume Bruner's still in complete control, but I think it's also not illogical to wonder if these are signs of significant shifts of corporate governance, shifts mentioned as desirable by a few of the new board members to those I trust, and directly by one new board member to me.

I think much of this I've posted before, if not all of it. I can likely dig up other negatives from my memory if I give it a think, such as Bruner's countless "bait and switch" NR's that always promised something just around the corner, tantalizing longs to stay invested just that little bit longer. While cronies played the swings.

====================================...

FWIW, I think nothing is gained by running Bruner out on a rail for Falcon shareholders, as a smooth transition is preferred. I don't care if he saves face or not, as long as he goes. I continue to believe he promoted the hell out of Falcon last May through June for the sole purpose of providing liquidity for Christian Russenberger to sell at a higher price, so as to have the means to bale out Petrohunter. Whether anything illegal transpired, I don't know for certain, but I damn well don't like having a CEO whose motives I consider suspect in the extreme.

====================================...

But the biggest help of all has to be to get rid of Bruner and his cronies, as you suggest. I think it's entirely possible that Bruner has spent money towards companies or consultancies run by friends or cronies for little value in return, and he certainly runs up extraordinary personal expenses.

====================================...

What were the mistakes? To me, the single biggest mistake is GAX is more than 50% owned by the Bruner family, so it could never, ever hope for responsible stewardship. PHUN is in a not too dissimilar position. Falcon's primary hope, besides sitting on a large potential resource, lies in having an independent board backed by shareholders utterly disinterested in what MAB has to offer. UPL succeeded, I believe, because the board was capable of making the needed changes, and did so. GAX and PHUN have no such capability. Falcon's board seems to me to possess the capability and the will to introduce true corporate governance, including ensuring Marc's departure as CEO after a JV deal's announced. - {so much for that happening}

====================================...

Of course, the board meets this coming week. Perhaps something of note will come of this, but unless one of the early suitors has made a suitable offer, we likely wait a bit longer. More likely, the board will turn their attention to minor things, such as asking for an accounting of where has the money gone. With the financial backgrounds of David Fisher, Igor Ahkmenov and Jan van Holsbeeck, I take comfort in the idea they likely will not take Wasoff's and Bruner's accounting at face value. While not directly related, Petrohunter has been pillaged from what I can tell, and while I doubt anything quite so egregious has been done with Falcon due to its visibility, I think prodding in the dark corners will likely find some cash leaking where it shouldn't. So, while "aggressively marketing" and "overpromising" by Bruner might be tolerated, siphoning off money for personal use represents sufficient cause for immediate removal. The office lease in Denver is suspect, and given the number of Petrohunter personnel finding their way to Hungary, the consulting and overhead numbers likely won't bear close inspection either.

====================================...

Personally, I look forward to the day when Falcon possesses a management team capable of getting the Mako trough on line. In terms of operational expertise and project management skills, the current management team has failed by the metrics readily available to me, and, in my view, they need to be fired, a clean sweep fore and aft.

I believe the board we now possess will come to a similar conclusion, and act accordingly. - {so much for that happening}

====================================...

It's for this very reason I have so little patience for the CFO and COO. While Bruner's ultimately responsible, Bruner's absolutely not a "details" kind of guy. That's the job of the CFO and COO, providing the needed skills. Wasoff and Edwards cannot be let off lightly, to my mind. Even if they claim Bruner called the shots, they're accountable for executing as cost effectively as possible, something demonstrably not done. And if Bruner is to be set aside, Bruner cronies cannot continue to serve; no matter what his title, Wasoff and Edwards will still jump if Bruner says "frog". For new management to be effective, free of interference, all the executive managers need to be removed, I think.

====================================...