Maybe Im crazy - but after some reading I sense the following:

Supply and Demand 101

NG is low due to a massive glut in the US from new technologies like frac-ing.

This makes production and exploration look uneconomical to those who mainly just consider the world consumption to include America.

This makes firms like Falcon oil that seek new gas look like poor investments. Especially if they have had some non-starts or seem risky. An economical & unconventional find is impossible for now and years to come according to most informed investors.

But

China and India are becoming major users and need imports at an increasing rate. Many dont believe in the massive growth of these nations or tend to ignore it (American pride).

US is starting to export there - especially US companies controlled by Chinese investors and Chinese companies are importing from the US.

This has gone from next to nothing to big business and is growing rapidly - just over the last year or two, but this is still not bigg enough to bee seen as a supply reduction hefty enough to impact prices signifigantly. This is a mistake. Forward thinking mid to long term investors should be buying and holding cheap NG related stock like Falcon because the supply glut will burst quickly and soon due to expansion in china and India. Especially as the world economy kicks back into gear - yikes!!!

Look how smart they are:

Not only is China importing more and more NG - but they have actually figured this out and are investing in undervalued gas related companies including Gas exploration and production companies nobody thinks will go anywhere as well - slowly perhaps to the point where they fully control them.

XOM and Chevron have as well i might add - so not all of us here are unwise to what is going to happen in the next few years.

Beetaloo and Falcon interest the Chinese in two ways. 1) a good source of cheap & close natural gas they can get there hands all over 2) an excellent investment in a weak company they can control and reep big profits from.

Ultimatly this kind of control and access is very key to Chinese investment decisions - the Chinese cant easily just waltz around and buy acerages in the USA or even in Australia or Europe without political implications - but they can buy up and control firms like Falcon that nobody is paying attention to and then effectively get whatthey want.

Beatalou

http://www.minyanville.com/businessmarkets/articles/natural-gas-commodities-china-india-chesapeake/11/29/2010/id/31394

http://blogs.ft.com/energy-source/2010/11/11/china-india-see-natural-gas-potential-us-government-is-missing/