>One point which I am not clear is regarding the Explorations licences, it they are due to expire by 31dec2009 and that the company has to renegotiate within 6 months before expiry, this suggests to me that they can do so after Exxon announces the test results sometime after October this year ?

Good morning Lux, here is an excerpt from Lanman's post from last week that should provide an answer to your query.

"The areas outside of the JV area are covered by the exploration licenses, both which expire at the end of this year. However, Falcon has an additional year to apply for a production license on those areas...so there is no risk of loosing that land until Dec 31, 2010.

Falcon mentioned in their latest MD&A that they are currently trying to get new exploration licenses for those areas. If they do, they will be good until 2018.

Another approach they are trying, is to get the Production License expanded to cover portions of the exploration license areas."