Falcon Oil and Gas Ltd.

Hammertime:

If the situation was simple as you mentioned, NIS never would step back!

The NIS changed their mind because the flow was not enough? What does it mean? It means

the pressure of the reservoir was very low; in other words in order to produce gas from this

reservoir you need to install water/ gas injection facilities in addition to the main production

facilities that needs to be installed. This requirement will force NIS to allocate a huge capital

, at least $500 Million; keeping in mind that they had right only to 50% of the asset their decision is meaningful.

However, there is a better chance in Mako Deep where I am sure there would be some players to take the risk and invest in it.

Mo