The implications for this deal with Chevron are certainly not being reflected in the stock price, but that may be in part because of Falcon still stuck to some degree in the penalty box since Exxon failed in Hungary, and the fact that we are still some time away from any real significant gas flows.

However, Falcon is in reality a much more valuable company now that it ever was when Exxon was drilling in Hungary. Falcon is now the owner of record of one (or two?) hundred trillion more cubic feet of deep tight gas than when Exxon was involved, plus large quanties of shale oil. When the rest of the investing public wakes up - we could easily move many times higher than currently. Cannaccord can keep selling into the bid whenever the buying momemtum slows down, but that is temporary and only effective with the weak hands and daytraders.

We have Hess spending millions on our behalf in Australia, NIS - which is part of Gasprom, getting ready to move ahead in Hungary and now Chevron taking the lead in South Africa.

We are now in the backseat with three of most powerful oil and gas companies in the drivers seat. Chevron, NIS and Hess all have the right political connections, drilling experience and funding to make one, two or potentially all three plays a success.

I think that as soon as NIS has some limited success in Hungary and we have even a few dollars of actual cash flow, then the share price will jump way up. It will probably take a couple of years for any real flows from Australia and even longer for South Africa, but then the stock moves into the multiple $ range.