People who sold yesterday are going to be scratching their heads when news of a better deal breaks. The board of Falcon played their hand strategically for a number of reasons. First, the Hess deal was under different leadership, the same leadership that added debt to a company with no revenue stream. Ask anyone with a formal background in fiancé and they’ll tell you that is the fastest way to bankruptcy. This leadership saw an exit and took it by voting against an extension.

Ultimately, the decision fell to Hess who walked. Reason, Hess recently added a slew of new board of directors focused on avoiding decisions with limited knowledge. The Beefalo Basin is not a bad deal; their Board of Directors simply did not have the time to look at this deal considering the liquidation of assets going on at Hess. This may seem like a big deal for all Falcon investors, but from a Hess perspective, selling their retail and distribution assets are more of a priority.

Second, Philip and the Board can now arrange a better deal now that they own the seismic data. I am very interested to see whose next in line. A Japanese owned firm seems very logically at this point, considering the future of Nuclear based energy in Japan is bleak. I believe Philip mentioned Japanese firms before but not to the argument, I have made here. They may not be big, but a Japanese government subsidized loan and further farm outs may be better than the Hess deal. In addition, let us not forget that since the management team has taken the reigns, they have landed Gazaprom, the second largest oil and gas entity in the world, and Chevron, the ninth largest firm. Hess is not even in the top 25, and would be luck to make it in top 50!

Lastly, think about how many more people now know about Falcon since they have taken control. They know how to get their name out there and leverage their previous successes to land big names. Falcon has until this December to spend a few million in the Beetaloo to retain their licenses there. That is why they did not grant them the extension; they did not want to see Hess drag their feet once again with no guarantee of a deal. That is what Philip was referring to in the press release if you did not catch that. I am not going to speculate on when a deal will be made but the Board gave themselves an ample amount of time to do so.

Hands down, Falcon's Board made a wise decision by not granting the extension. Let me be the first to say this. Thank you Philip and Board. Keep up the good work and find the best deal for the company. Hess surely was not it.