The first item is Exxon. Chris explains that Exxon has successfully drilled a well into a fractured tight gas system which was in contact with fresh water aquifer. The micro-fractures cannot be seen on seismic; therefore it was not a glaring technical error. To pursue the opportunity, there is a need for better methodology, and without it this could be a consistent risk throughout the Makó trough.

Hence, there was no incentive for Exxon to continue the work on Falcon’s land, because the refinement of the seismic to identify non-fractured zones could take over a year to re-process plus requires additional drilling information.

IMO Hungary: FO has water and to proceed needs better methodolgy to go forward. Water aquifer in all drill sites and land is a consistent risk. Refinement of seismic will take at least another year to re-process. This report could not be worse for a company out of money and, who would partner with them based on this information?

The Beetaloo Basin is a gas prone area, and a number of operators made previous attempts to commercialize it.

Falcon is pursuing the tight gas opportunities, where they have drilled a well and waiting for the area to dry up over the next couple of months to pursue the completion of this well.

IMO Australia: Sounds a lot like Mako. Others have tried but somehow Falcon is going to make it work. Hopefully the testing will go well for you guys and I am sure Marc with his "oil for blood" sense has found the sweet spot when no else could on this acerage. As for the wet season, this has to be a record in regards to rainfall. Maybe Noah is building his arc there?

The agreement Falcon has is merely an opportunity to review the data and put in an application on an area for unconventional exploration. It’s a non-exclusive agreement where there are other majors reviewing other areas of this basin. The challenge here is that South Africa has a limited distribution system for NG and the use of feedstock for industrial purposes limited due to the country’s overwhelming coal reserves, which also makes it politically sensitive due to the need for employment for coal mines.

IMO South Africa: Not sure why some of you are already putting this in the FO portfolio based on "review of data with no application". I have a lot of proposal I am working on here at work and I am know thinking maybe I should just go down the hall to accounting and tell them to book all of them as revenue even though I don't have the accounts yet. And once again that word "challenge" is used.

Overall, I personelly believe that unless Falcon can work some drills that don't have have them on the investor list of "highly speculative" that this company, like many other Bruner companies investing in "science experiments," will fail. Time will tell.....