> S.A. may allow fracing by end of MARCH?

That’s not likely. The moratorium will end on March 31st but the decision to frack or not to frack may not come before end of June.

Read the following....

“Instead, her intention was that the government needed to be informed first of fracking’s implications for SA, and to understand them.

It was anticipated that the task team, made up of the directors-general of the departments of mineral resources, science and technology, and trade and industry, plus the CEO of the Petroleum Agency SA, would release its report to Cabinet on March 31, Ms Shabangu said.

After that it would be released to the public, but Ms Shabangu said she was unable to estimate when this would be because she had no control over the Cabinet process.”

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> Did FO get the 18 million from Hess?

Actually Falcon received $22 million.

· Cash payment of $20 million

· Bottom hole contribution of $2 million after Shenandoah-1 test

On closing (July 13, 2011) Hess Australia made a US$17.5 million payment to Falcon Australia. Hess Oil and Gas Holdings Inc. (“Hess”) also paid Falcon US$2.5 million and Falcon issued Hess a warrant exercisable for 10,000,000 common shares in the capital of Falcon (“Common Share”) at a price of CDN$0.19 per Common Share for a period from November 14, 2011 until January 13, 2015. Upon receipt of all necessary regulatory permits, Hess Australia will commence the process of acquiring seismic data over Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the “Agreement Area”). After completion, processing and interpretation of the seismic data, Hess Australia may elect to acquire 62.5 percent ownership in the Agreement Area and continue to the next phase of the work program which includes conducting a five well program to explore and appraise the Agreement Area, beginning in 2012.

DENVER, CO July 13 2011

Shenandoah-1 is within the 100,000 acre area that is under the sole ownership of Falcon Oil & Gas Australia Ltd. and is not part of the acreage included in the joint venture with Hess Australia (Beetaloo) Pty. Ltd. (“Hess”), as described in the July 13, 2011 press release. Under the terms of that arrangement however, Hess will be provided copies of data obtained from the testing and completion, for which the Company will receive $2 million.

DENVER, CO November 14, 2011