a bit of confidence here.

Falcon has confirmed that it has received approval from the shareholders of its Australian subsidiary for the acquisition of Sweetpea Petroleum‟s 50m shares or 24.22% interest in FOGA (a subsidiary of Falcon)
 Following the completion of the share purchase, Falcon will own 200m shares in FOGA representing 96.9% of the issued share capital of the subsidiary, which has four exploration permits in the Beetaloo Basin, Northern Territory, Australia
 The terms of the agreement also includes a cash consideration of $3m together with the issue of 97.86m Falcon shares to Sweetpea
Comment: In our view, Australia is a key area of focus for investors, and Falcon has confirmed that it is currently in talks with up to four industry partners that have expressed an interest in the shallow play, which we believe, supports management‟s view of the considerable upside potential across these permits. In terms of our valuation, we increase Falcon‟s effective interest in Australia from 73% to 96.9%, whilst also taking in to account the dilutive impact of 98m newly issued shares and $3m consideration. We therefore retain our BUY recommendation, and increase our TP to 25p from 23p. (Sam Wahab – Oil & Gas Analyst – swahab@cantor.co.uk)