> Falcon definitely used the money of the PP completely to survive the first 2 quarters in 2008 and as far as I know,the PP was therefore never reallocated to anyone.

Nov 2008 MD&A:

"In light of the ExxonMobil transaction, the board of directors of the Company has assessed the overall business strategy of the Company and determined that a reallocation of the remaining proceeds of the December Offering be made to the Beetaloo Basin and Buckskin Mesa Project acquisitions."

...which is basically what John said this morning.

> Did Falcon really not use the money as they stated they would. If anyone can clarify this matter i would appreciate.

Well I'm no longer a FO shareholder, but cant resist taking a peek at the board now and again :)

This should answer your question. It's in the April 2008 MD&A

As of December 31, 2007, and the date hereof, substantially all of the proceeds from the December Offering are being held by the Company, with only a minimal amount having been expended by the Company in accordance with its disclosed business plan of operations. In light of the ExxonMobil transaction, the board of directors of the Company is in the process of considering a reallocation of the remaining proceeds of the December Offering with a view to the best interests of the Company.

>Until I hear it directly fro XOM, I will continue to wait, thank you very much.

Exxon Mobil suspends Hungary exploration project

Exxon Mobil Corp. said Friday it suspended exploration operations in southeast Hungary after well tests proved disappointing.

The Irving, Texas, company also exited a production and development agreement with Falcon Oil & Gas Ltd. related to the project.

Exxon Mobil signed the agreement in 2008 to explore in the Mako Trough area but decided to suspend operations after the well tests were disappointing, Exxon Mobil spokesman Patrick McGinn said in an e-mailed statement.

Falcon, which is headquartered in Denver, said its other partner in the project, MOL Hungarian Oil and Gas PLC, also exercised the option to terminate the agreement.

Falcon is in discussions with several companies to find new partners to continue work in the area where it has 247,000 acres under a long-term production license.

Shares of Exxon Mobil slid 2 cents to $65.94 in afternoon trading.

http://www.businessweek.com/ap/financialnews/D9DVFA3G1.htm

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I underlined the word "also". To me that clearly means Exxon is no longer working with MOL on the western portion of the basin either.

Oh well. The last few years have been fun. It was well worth the risk, but sometimes things just don't work out the way we hope.

Good luck to anyone who plans on hanging on, but personally I've had enough, and will most likely sell all my FO shares next week. Australia looks promising, but I'm just no longer interested. Time to move on.

Great story. Of course I hate bursting bubbles, but there really isn't anything here we didn't know already. All the talk of Exxon continuing are simply the opinions of different analysts, except for this part:

"Exxon will apply XTO’s "best practices" to projects in Hungary and other countries, Tillerson, 57, told investors on a Dec. 14 conference call."

Unless he told the reporters this 'off the record', this is NOT what Tillerson said. Here is what he said from the official transcript:

"The integration into ExxonMobil's global functional model will allow the rapid development and deployment of technologies and operating practices globally to maximize resource value"

He DID NOT mention Hungary in particular.

Personally, I think they will continue with phase 2, but we won't know for sure until the end of February.

And as for what Schultz said:

"If they were going to walk away from this, they wouldn’t be buying XTO"

They still have Germany and Poland. Hungary is only a part of Exxon's international portfolio.

>We have to believe or eat the crow and we are in good company and shouldn t jump the ship while the joint actors are still aboard.

Dec 22 Alternative Early Warning Report:

"...the Co-operating Shareholders have no further agreements with each other and therefore have ceased to be joint actors."

Just being picky :)

>They now have two directors on the inside watching and giving input on what Bruner should or should not be doing and I am happy about that.

If the 2 new ones are Burlingame / Renova nominees, then there will be 3. The 2 new ones plus Carl Stadelhofer.