As we approach the month of October with anticipations, I would like to invite all of you to look back and reflect on the milestones in the Falcon saga.

It all begin about four years ago in 2005, when Falcon acquired a 100% working interest in two hydrocarbon exploration licenses in the Makó Trough. In the next two years between 2005 and 2007, Falcon completed a six-well exploration program on its lands. Consequently Falcon’s drilling program confirmed the presence of hydrocarbons and a working hydrocarbon system in the Makó Trough.

As a result, in May 2007 Falcon was awarded a production licence covering 245,775 acres within the trough. The licence extends over a 35-year period and is extendable another 17-1/2 if production is maintained.

However, the development of the Makó Trough proved to be too tough for Falcon. Therefore in the summer of 2007, Falcon set out to find a partner. In April 2008, from an array of 20 participating companies, Exxon emerged as the most suitable partner for Falcon. Falcon entered into a production and development agreement for the Makó Trough with Exxon. The agreement is structured in three phases, and right now ExxonMobil is at near the end of the first phase of this agreement, which requires them to test one or more of Falcon’s existing wells or drill one or more new wells.

The Földeák-1 is that new well. This is the well that is being tested by Exxon. This is the well that we all look towards with anticipation. I suppose that some of you having a feeling of unease or apprehension, and that is perfectly understandable. Personally, I’m very relaxed. I’m just one of the more than 13,000 Falcon shareholders, but I feel quite comfortable among shareholders like Burlingame with 105 million shares, Renova with 91 million shares, AGF Inc.with 7.5 million shares, Sprott Asset Management LP with 4 million shares, and of course the millions owned by you guys on these boards.

Regards, John