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<You mention there is 100MM shares in a private company. can you provide me your source for this information as I could not find anything about this subject in browsing through my Falcon research.>
Sorry, my numbers were off a bit. There are 200MM shares in the private Falcon Oil & Gas Australia Pty Ltd (75/25 Falcon Canada/PetroHunter).
They are looking to raise up to another 50MM shares (privately at US$1.00/ea). It's explained better in this release (give the PDF time to load).
www.martinplacesecurities.com.au/download_file.php?uid=139
I also contacted Stephen Schultz at Falcon for a full explanation.
Silverhound
The way I understand things is that Falcon Australia is a spin off company. It is currently owned 75% by Falcon Canada and 25% by PetroHunter.
I believe there is currently 100MM shares in the private company. There is currently an effort underway to sell more shares (privately) to raise operating money(10-50MM @ $1.00 I think). This would cause dilution to the % ownership that Falcon Canada (and PetroHunter) have in Falcon AUS. At some point there may be a move to list Falcon Australia on the AU exchange as well.
I don't expect any more shares to be sold for FO on the Venture exchange unless it's for operations in Hungary (even at that point it would be a poor choice for raising capital).
There seems to be the impression that the majors (exxon, shell, BP, etc) are the technology leaders in the world. I think the reality is quite the opposite. It's the smaller, mid-cap operators that are pushing the edge of technology.
In the 80's, the R&D dept's of the majors were huge. Now more focus is put into M&A activities, and technology development has been pushed onto the service companies.
While the EOM's of the world are still drilling case and perf vertical wells, the smaller operators are pushing the limits of constructing and completing wells with rotary steerable tools, drilling multi-leg horizontal wells for open hole multi-stage fracing.
Falcon needs a partner with money and balls to do what's necessary to bring the resource to the surface; in the Mako and Australia. I hope they have learned a lesson (with our money) in Hungary, and structure any JV's in Aus a bit differently.
Silverhound
It takes a lot of guts to show up to a party wearing the same outfit as Vladimir Putin :)
Joe Gus said...
"Patience" is the word that has pursued me since 1998, when I first obtained the Makó licenses. Now, in November 2009 I must use Patience again: Exxon, the present operator has several months under Falcon's farm-out agreement during which to analyze their results from the 3 frac attempts in the Foldeak-1 well. Exxon also has experience from their Mindszent and their Hod-1 wells, not all good from a mechanical standpoint.
Briefly, the Foldeak-1 frac's were not what you would expect from a world-scale operator. Also mechanical problems (erosion-failed valves without back-up, possible inadequate cementing of casing, and other problems). The Exxon operator's report to be released to MOL and Falcon in a couple of months will tell more. Exxon is currently rigging up to test more of the identical Szolnok BCGA in the nearby Bekes basin on a farm-out from another party controlled by Aspect Energy. That is good for everybody, because Exxon appears to have to learn from one well or frac to the next. Perhaps ANY operator would have to do that in this very hot, very high pressure formation. We had hoped that Rocky Mountain technology (some developed by Exxon) would export easily into Central Europe, but that is apparently not so.
Therefore, my word is still "Patience". Remember, when I started this in 1998, I saw 4 (four) BIG RISKS. Is the gas there? (Now proved). Will time be available for the licensees? (Now protected by the 35-year Exploitation License). Is there a market, which will pay for the gas? (You bet!). The fourth risk is still there, namely can modern technology get the gas to the surface? That is what now is being attempted, but with many mechanical problems. Some of these problems should NOT have occurred, but that is easy for me to say. In conclusion, the gas is there, the legal protection to allow time is there, the market is there, and surely the engineers will get the gas out..... with patience.
Joe Gus aka John Gustavson
PS You can contact me regarding Makó Trough on my web site www.gus235.com which shows how I am now exploring for uranium, right in the middle of the USA
http://pergceu.blogspot.com/2008/07/europes-greatest-energy-secret-hidden_13.html
Here is my 2 cents.
With all of the Vac trucks moving in and out, I would say they are doing a cleanup after the frac. There was a nitrogen truck moving in, which could be there for a "blow down" to remove sand from the bottom of the well, and a wireline truck to remove/set plugs or perhaps log the flow from the upper zone.
Silverhound