Falcon Oil and Gas Ltd.

The beauty of the GAS (Propane) Frac is that when the pressure is released the GAS goes from the gel state to its' gaseous state, it is the same chemical that you are drilling for and processing and is already present in the target area. Other natural occurring chemicals contained in the shale rock can be a problem and have to be dealt with as always but is not caused by the fracing process. Normally all gas added to the system is returned within 10 days of fracing and can be reused or can be sold with the target gas. Water can take years to return from the system and can mix with clays and slow or clog the system.

Getting water in a desert area is a large problem. Disposing/processing/reusing and transporting of the used water is an economic and environmental problem with the Karoo Basin or other desert basins. Getting public permission to get water, use water and dispose of water will cause large time ($$$$) delays as it is easier for politicans to study & delay and pass it on down the time line. This is true, regardless of realities.

Gas fracing has shown to increase production of a well short/term or over the life of the well, compared to a water frac. It is more costly than a water frac but over the life of a well it is more cost efficient.

IMHO Gas Fracing or a new technology will be used to develope the Karoo Basin. Fracing with water/chemical will be history. If you are looking for riches from your Falcon Karoo investment, get familiar with this technology.

Is Gas Fracing immune to time delays &/or protests - of course not but is environmentally much more attractive.