Falcon Oil & Gas Share Discussion Threads

[korkikorki] 18/7/2013 09:58

Davy revised Target Price this morning 17.3p..............

[thecynical1] 18/7/2013 07:20

is this not quite a lot of dilution.........?

[spurberry] 11/7/2013 13:10

what is the cash position here?

I appreciate the assets here but how long till drilling especially with no partner now?

[197300] 11/7/2013 13:03

nice note fron cantor this am.
Falcon has confirmed that it has received approval from the shareholders of its Australian subsidiary for the acquisition of Sweetpea Petroleum‟s 50m shares or 24.22% interest in FOGA (a subsidiary of Falcon)
 Following the completion of the share purchase, Falcon will own 200m shares in FOGA representing 96.9% of the issued share capital of the subsidiary, which has four exploration permits in the Beetaloo Basin, Northern Territory, Australia
 The terms of the agreement also includes a cash consideration of $3m together with the issue of 97.86m Falcon shares to Sweetpea
Comment: In our view, Australia is a key area of focus for investors, and Falcon has confirmed that it is currently in talks with up to four industry partners that have expressed an interest in the shallow play, which we believe, supports management‟s view of the considerable upside potential across these permits. In terms of our valuation, we increase Falcon‟s effective interest in Australia from 73% to 96.9%, whilst also taking in to account the dilutive impact of 98m newly issued shares and $3m consideration. We therefore retain our BUY recommendation, and increase our TP to 25p from 23p. (Sam Wahab – Oil & Gas Analyst – [e-mail])
ps cantor clients meeting o'quigley and craven this evening in dublin, hopefully some more information will be forthcoming about beetaloo

[phoenix1234] 10/7/2013 18:03

Falcon Oil & Gas (David) V Hess (Goliath)

[seanstone] 08/7/2013 20:48

All very promising. Doesn't sound like this will take off for quite some time however

[thecynical1] 03/7/2013 17:52

looks like it could be quiet around here until there is some news from NIS.

[hermana3] 02/7/2013 10:40

The market hates uncertainty and saw Hess involvement as good for drill prospects. Will take Phil some time to structure a new deal of course.

[seanstone] 02/7/2013 10:31

Considering we are supposed to be taking the loss of hess as 'positive', the share price is taking a hammering! Not so rosey

[hermana3] 01/7/2013 21:24

Phil didnt blink!

[753690] 01/7/2013 21:14

Copied from StockHouse:

Hess left shooting of seismic to the last minute and now it looks like their dithering has cost them an interest in this acreage .

Hess had to make strategic decisions in these hard times and Falcon seem to have benefited .

Not so many material tracts of land available to the majors now .

Well done to Phillip O'Quigley for closing the door to them . Stockhouse:

[thecynical1] 01/7/2013 20:24

korki...I think that they must have had some serious expressions of interest. If not, then it may prove to be very short-sighted to refuse an extension - even if it would have been the second extension. It could have been quite limited in duration.

The question of funding is imo not really an issue - if the seismic really is good and the really have had unsolicited enquiries, it should be possible for them to get a good deal organised. The question I am asking myself is what is the timeframe. I presume that they will need months rather than weeks to put something to bed which imo doesn´t bode well for our immediate prospects of getting positive price action. O´Quigley may be the poker player of the year and already have someone lined up but if HESS took months to assess the seismic, surely a new interested Party is also going to need to have a serious look at the data, then get budgetary approval for a tie-up...and..and....and...

[korkikorki] 01/7/2013 19:24

Well London clearly wasn't impressed and I doubt if Toronto (tomorrow) will be either.

Still PO'Q might have something up his sleeve (other than his arm). But I suspect it will be hard to get a new partner to farm in after Hess walked away, having clearly baulked at the 5 well (75 million) commitment, on their own.

Also remember it is only weeks since PO'Q bought out the Minority interest in these licenses for (I think?)3 million dollars and a shed load of Falcon shares.

It follows that Falcon are now on their own, with a major drilling commitment program to fund and very limited cash resources.

Let's hope he can pull a new rabbit out the hat, very soon.

[thecynical1] 01/7/2013 15:58

nice piece of timing....Canada Day today so market across the pond is closed. Very cute!

[thecynical1] 01/7/2013 14:21

Talkman2 - check out the recent headlines for HES....they have a lot going on internally - I guess someone took their eye off the ball.....or maybe they just didn´t like what they saw....unfortunately, we won´t know until such time as they find a new partner.

[197300] 01/7/2013 13:46

by refusing to give them an extension he has picked up 80m of work for zilch.
whoever hess was farming out to was going to leave hess with some stake, if we do a deal with the same company we will get this benefit ourselves

[talkman2] 01/7/2013 12:00

Do you think PO'Q is stupid ? Maybe he is in a better position and get an even better deal having 100% of the license and $80 million of seismic already done and paid for . Think about it . The guy I am sure is playing a blinder.

I am sure the shareholders of Hess aren't too impressed . Giving another company $80 million of free technical and seismic work ! These big companies are amazing.

[thecynical1] 01/7/2013 11:45

interesting point. have you asked the guys in Dublin why they didn't go for something like that?

[korkikorki] 01/7/2013 11:39

It sounds to me that PO'Q decided to play hard ball with Hess.
Time will tell if he was right.

Why start again with a "potential" new partner and the delays that will entail?
Surely a compromise could have been reached with Hess whereby a 30 day extension
was allowed in return for a cash payment of say a million.

As I say, time will tell but it seems an extraordinary way to do business>

[197300] 01/7/2013 11:17

note from proactive investors, like last paragraph.
Falcon gets to keep 100% of four permits in the basin in Australia's Northern Territory, which the AIM and TSX-listed explorer says leaves it in a "stronger position going forward".

Falcon Oil & Gas (LON:FOG, CVE:FO) said Hess (NYSE:HES) has elected not to commit to a five well programme on the former's Beetaloo Basin permits in Australia.

In a dramatic twist to events the American giant asked for an extension to the June 28 deadline in order to conclude a farm-out with a third party described as "one of the largest oil and gas companies in the world".

This request was rejected, which means Hess forfeits their right to earn 62.5% in three Beetaloo permits having invested an estimated US$80mln exploring the area.

Falcon gets to keep 100% of four permits in the basin in Australia's Northern Territory, which the AIM and TSX-listed explorer says leaves it in a "stronger position going forward".

The group said it has already received "unsolicited interest" from major oil and gas companies.

More tangibly, Hess has transferred the licence to 3,490 kilometres of seismic to Falcon, which has some "extremely encouraging" pointers to the area's potential.

Experts have identified a shale oil play in the northern portion of the permits in addition to shale gas and conventional plays throughout the acreage.

Chief executive Philip O'Quigley said: "We regard the Beetaloo Basin as a potential world class conventional and unconventional play with significant oil and gas potential.

"Hess requested a one month extension to allow them sufficient time to conclude a farm-out deal with a third party, which they described as one of the largest oil and gas companies in the world.

"Falcon's rejection of their request and Hess's subsequent decision not to elect by the agreed deadline was viewed by the board of Falcon as an opportunity for Falcon shareholders to increase their interest in what promises to be a very prolific basin enhanced and de-risked by the new seismic data.

"I would like to thank Hess for their significant contribution to the Beetaloo project both in terms of their technical input but also in terms of their financial investment which we estimate to be approximately US$80mln to date.

"I look forward to updating the market as we move forward on our extensive acreage in the Beetaloo Basin."

[197300] 01/7/2013 10:30

nice comment by cantor.
Falcon Oil & Gas –

FOG.L, TP: 23p, CP:15.25p, Mkt Cap:£125m



Falcon Oil & Gas has announced that Hess (N/C) has chosen to not elect to commit to drilling the five wells required to earn their interest in the Beetaloo permits (Australia) by the agreed deadline. A late request by the company to defer the election date for a second time was unanimously rejected by Falcon's Board, and as such Hess forfeits its right to earn 62.5% in three of the Beetaloo permits. Falcon will therefore retain the full 100% working interest in the acreage, with unsolicited interest already received from major oil & gas companies. To date, Hess has invested c.$80m across the permits, primarily on 3,490km of seismic data - significantly de-risking the assets, which will all now be forfeited. In addition, Falcon has identified a shale oil play in the northern part of the permits which compliments the shale gas and conventional plays throughout the acreage.



In our view, given the significant investment in the acreage to date, notwithstanding interest from other majors, Hess' decision not to elect is a positive for Falcon. One reason Hess requested a one month extension to the deadline was to allow them sufficient time to conclude a farm-out deal with a third party, which is described as one of the largest oil and gas companies in the world. On this basis, we believe the prospectively of the acreage could attract a better deal for Falcon to what was initially tabled by Hess. In terms of our model, we increase Falcon's effective interest in the 2D seismic data to 73%, and assume a similar farm-out in the near term of its Australian acreage. We therefore retain our BUY recommendation and increase our target price to 23p/share (from 22p).





Sam Wahab

Oil & Gas Analyst

[thecynical1] 01/7/2013 10:07

any ideas on a timeframe? it took a long time for the seismic to be checked.....a potential partner is presumably going to do his own checking.....can anybody put a realistic guess on a timeframe?

[talkman2] 01/7/2013 10:04

With $80 million of seismic I would think they would not have a problem.

[thecynical1] 01/7/2013 09:59

The question is whether they get a free carry with a new partner......guess we'll have to wait and see.