I'll admit that living here in Canada (and not being too closely in touch with the O&G industry in general) i'd never heard of Hess before the NR (and please note they are our potential new partner)...but in the reading i have done over the past few days these guys seem like a pretty big deal...not to mention well organized and capitalized...they may not be one of the so called big fish we'd hoped would sign on (the "super majors") but Hess is all over the map, on pretty much all continents on AND offshore...and they have unconventional experience...i don't see any negatives at all being associated with them and i certainly hope this letter of intent becomes a reality for the good of all of us. Though i also am left wondering if these Chinese investors are going to pull through...although adding dilution, that $60+ million would go a long way to doing a comprehensive frac job / testing program on the Shenandoah-1 which i think is probably vital to continuing efforts in the Beetaloo. I understand that there is a plan of attack already outlined in detail as to how Falcon will approach the S-1 and complete the fracking/flowing/testing...but also beware that we may not see "mind boggling" results of this program...nor do i see such results as being the "do or die" moment for us...i think at this point it may be that the data gained from the exercise may be more important as to where we head next (i.e. horizontal drilling) than the actual "vertical" test results. Either way i see the potential relationship with Hess as hugely positive and not sure why the SP hasn't reacted accordingly but in reality, today's SP doesn't mean a whole lot to those of us who are long. Falcon also has the opportunity to JV for the 100% FO controlled concessions as well (which includes the S-1 immediate area) so hopefully more announcements on the way down the road. Hopefully we are finally on the right track and beginning yet another long journey toward eventual success.

BTW, before anyone writes off Hungary...if there happens to be any "spare" cash between the Hess deal and the Chinese deal (assuming both come to fruition) i wouldn't be entirely surprised if the company generated some buzz by re-entering and conducting a fracking program on the Mako-7 which has been sitting idle since becoming the deepest well in the history of the country. Wouldn't that be something to get excited about...after all, us longs remember the excitement we felt reading Lanman's postings about the potential of the Basal Conglomerate and the Synrift right? That's of course assuming the resource is gas and not water :) As for Africa i understand things are progressing about as slowly as anticipated, being in the very early stages and that environmental red tape is playing a key role for potential explorers at this time.

Cheers,

LP