http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issu…

MD&A

Future operations in the Makó Trough are subject to further technical evaluation by the Company. Operations within the Production License are also subject to ongoing efforts to enter into joint venture arrangements to evaluate the Algyo, Szolnok, Endrod and Basal Conglomerate formations.


Following full evaluation of the results, the Company plans to test the well in the third quarter of 2010. Under a work program approved by the Northern Territory of Australia Government, Department of Resources, on March 31, 2010, the Company is obligated to complete minimum work requirements by expending $6,400,000, $3,900,000 and $5,000,000 during the years ending December 31, 2010, 2011 and 2012, respectively, in order to continue to hold the underlying Permits in the Beetaloo Basin Project.


Falcon Australia Private Placement
In January 2010, Falcon Australia commenced the marketing, by way of a private placement, of the saleof up 50 million shares of its common stock (“FA Share”) to sophisticated or professional investors within the meaning of sections 708(8) and 708(11) of the Corporations Act 2001(Australia) pursuant to an Offer Memorandum (the “Offer”), at a price of $1.00 per FA share, with an attached option. Each option entitles the holder to acquire one additional FA Share in respect of each FA Share sold, exercisable at $1.25 for a period of three years from date of issue. Closing is expected to occur on or about June 30, 2010, and as of April 23, 2010 all conditions precedent, including consent from the Northern Territory government for the transfer to Falcon Australia of the remaining undivided 25% working interest from Sweetpea to Falcon Australia, have been satisfied. The acting broker to the private placement will receive, as a brokerage fee, 6.50% of the funds raised, together with options (on the same terms as issued to investors), calculated at 6.50% of the number of shares issued in the private placement.


Cash and cash equivalents at December 31, 2009 were $11,804,000, a decrease of $13,743,000 from $25,547,000 at December 31, 2008. Working capital at December 31, 2009 decreased to $18,176,000 from $32,074,000 at December 31, 2008.


The Company’s future capital requirements for Australia will be dependent upon the evaluation of the results of the Shenandoah-1 well and the overall Beetaloo Basin Project.

regards,

painted1

ps Thanks to von auriga for finding this on Sedar

pps. John, thanks for getting rid of all your alias'.