>A distressed company is easy pickings. FO would have never gotten a shot at Buckskin or Beetaloo so cheaply if PHUN wasn't in trouble.

I was happy to see the news today. I was never too thrilled about the Colorado play to begin with. I do like Australia though, and am looking forward to the drilling program. However, I think they paid too much. Texalta Petroleum has 5 million acres next door to the Beetaloo in the Georgina Basin. A very similar play, and yet they farmed out 60% for $10 million, about 1/2 of what Falcon had to pay PHUN. Also, before PHUN got ownership of the Beetaloo, it was owned by Bayless, and Bayless had a deal with ROC Oil of Australia whereas ROC could earn > 50% interest for only $3-$4 million. ROC never when ahead with the deal for some unknown reason.

So in other words, the Australia JV was anything but cheap.

http://www.texalta.com/PR%202008.01....

http://www.rocoil.com.au/Public/Anno...