Falcon is a global energy company with projects in Hungary, Australia & South Africa

Developing large acreage positions of unconventional and conventional oil and gas resources

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Message: Re: A Few Points
4
Sep 08, 2009 04:29PM
2
Sep 08, 2009 06:36PM

1) If Exxon had any kind of flow rates from the HOD well then surely this would already be reflected in the price of FO. Instead the price has just drifted. Could it be, that since the HOD well is on the extremity of the BCGA, Exxon actually had zero flow rates? Not necessarily a bad thing if all they were doing was proving the extent of the BCGA.

This point really is mute. First off, Exxon is well known for keeping information close to them until they decide to come forth with it, regardless of the purpose of the well or the results thereof. Secondly, I’m sure that Exxon will reveal the Hód-1 results at the same time with the Földeák-1 results.

2) What was the point of making the announcement about Beetaloo? - which is, according to Ryder Scott, 'Undiscovered in-place Resources'. If the plan was to light a fire under the FO share price (in the same way as the Scotia report did a few years ago) then it failed.

What made you think that the announcement had anything to do with lighting the fire under FO? The announcement is just part of a natural progression as the company is moving forward,

3) The recent fund raising was a waste of time. Given that FO has squandered hundreds of millions over the last few years what difference will 11 million make now? I guess they were hoping for more so they could prove to Exxon that they're not there to have sand kicked in their faces. It looks like the plan backfired.

You could say that it wasn’t a successful fund raising, that is for sure. However, it is not that unusual, many companies had some trouble raising funds in recent times. Lets get some good flow rates next month, and we will see the Bankers lining up and fork money over to Falcon.

4) Any comparisons to Ultra are, in my view, justified. Clearly MAB is a complete genius at sniffing out oil and gas deposits but having him at the helm for too long is a mistake.

So, let Exxon buy him out :)

5) Hopefully by October we can all breathe a sigh of relief when the FO flow rates are made known. But this looks like an all or nothing game - either the shares will be worth a few bucks each or they'll be worth 5 cents. If it's the latter then it's back to waiting, this time for a partner to come to the rescue on Beetaloo. By that time our children (grandchildren) will be saying how wise we were to hold onto the shares for so long, as they sip their Pina Coladas by the pool paid for by dividends from the FO shares we left them in our wills.

There you go, welcome to the Stock Market :)


Sep 11, 2009 08:37AM

Sep 11, 2009 09:36AM
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