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What Falcon says about itself (from its website)  Falcon Oil & Gas Ltd. is a global energy company that is focused on acquiring, exploring and developing large acreage positions of unconventional and conventional oil and gas resources in politically and economically stable countries that are characterized by a high regional demand for energy, and an existing infrastructure that permits rapid delivery of oil and gas to market. Our expertise includes some of the world’s top oil and gas experts with several decades of highly successful unconventional and conventional natural gas drilling, development and production in North America. Our offices are in Denver, Colorado, Vancouver, British Columbia, and Budapest, Hungary. Shares of our company trade on the Toronto TSX Venture Exchange under the trading symbol ‘FO’. What its website is saying about its SA project New York Stock Exchange Commission cites Falcon for not filing. Press Release from Falcon Oil and Gas. Falcon and Chevron to jointly Explore Karoo Basin in South Africa TORONTO, December 12, 2012 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) (Falcon), a Toronto listed and Dublin headquartered company focused on unconventional oil and gas exploration and producing assets in Australia, Hungary, and South Africa, announced today that it has entered into an Agreement (the Agreement) with Chevron Business Development South Africa Limited (Chevron) which allows both parties to jointly co- operate together in order to seek unconventional exploration opportunities in the Karoo Basin, South Africa. Falcon currently has a Technical Cooperation Permit (TCP), which gives Falcon exclusive rights to obtain an Exploration Permit covering approximately 7.5 MM acres in the southern part of the Karoo basin. The Agreement today provides for Falcon to work exclusively with Chevron for a period of five years in jointly obtaining Exploration Permits in the Karoo Basin subject to the parties mutually agreeing participation terms applicable to each permit and as such, there will be future announcements by Falcon when an Exploration Permit is awarded. Chevron will make immediate cash payment of up to $1 million to Falcon as a contribution to past costs and from today will work with Falcon to secure Exploration Permits. Philip O’Quigley, CEO of Falcon commented: “Today’s Agreement with Chevron is a major step forward towards realising the full potential of our already significant acreage position in the Karoo Basin currently held under a TCP. Chevron has over 100 years of experience of working in South Africa but even more importantly has extensive experience in commercially and sensitively developing unconventional oil and gas resources. This Agreement is an encouraging endorsement of the management’s confidence in the potential of the Karoo and we look forward to making future announcements when an Exploration Permit is awarded. |
The Falcon Application Falcon has made an application to the Petroleum Agency of South Africa (PASA) to conduct a seismic survey on its block stretching from just south of the Tankwa-Karoo national Park in the west to Graaf-Reinet in the east and covers 30,300 sq.km. The initial application made to PASA contained an outline of the block and its co-ordinates. The law requires Falcon to produce an Environmental Management Programme (EMP) within 120 days of its application and its agent SRK Consulting submitted a very brief document at the turn of the year. Two parts of this document are available from this website - the executive summary and the project detail. So, according to PASA's guidelines a decision on the application is now due. We have not commented specifically on SRK's documents since the project does not (yet) include fracking. If and when Falcon get permission for their seismic survey, conduct it and then apply to drill exploration wells, then it is very likely that we would object, since that 'exploration' could be fracked for production purposes. We hear that not all the land-owners and their tenants have been consulted during the EMP process. If PASA wishes, it has the rights to decline the application on that basis. From an article in beforeitsnews.com dated 9th August 2011 Upon the July 13, 2011 closing of JV agreement with Hess, Hess Australia made a US$17.5 million payment to Falcon Australia. Hess also paid Falcon US$2.5 million for warrants exercisable for 10,000,000 common shares in the capital of Falcon at a price of CDN$0.19 per share. The influx of cash was a much needed step in alleviating Falcon’s liquidity problems. According to Falcon’s Management’s discussion and analysis for the three months ended March 31, 2011 “The Company’s cash requirements for the next twelve months (cash required for operations and for spending required to maintain its Australian permits) exceed available capital resources at March 31, 2011. As a result, the Company’s ability to continue as a going concern is dependent upon its ability to raise additional capital and secure an industry partner for its operations in Australia and Hungary”.Information regarding our current South African project to be updated shortly. From its Enercom presentation August 17th 2011 KAROO BASIN, SOUTH AFRICA Falcon TCP Area 28 Opportunity Summary : Falcon currently has a Technical Cooperation Permit and has applied for an Exploration Licence on 7.5 million acres in the Karoo Basin. EIA (Apr 2011) estimate 485 TCF recoverable resource in South Africa. Market pressures and increasing demand are leading South Africa to diversify energy supply from coal to other sources. Highly Competitive Position in the Karoo Adjacent to Shell application area and Sasol/Statoil/Chesapeake TCP area Highly Competitive Position in the Karoo. Falcon’s acreage is strategically placed in most geographically accessible area (not covered by Dolerite capsdolorites) Falcon Activity. Public consultation and Environmental Management Plan completed January 2011. Falcon has planned seismic activity pending granting of licence. Current moratorium on Exploration Licences – government review of regulations Field operations in the Karoo, Lindeque et al. 2007. |
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