Falcon is a global energy company with projects in Hungary, Australia & South Africa

Developing large acreage positions of unconventional and conventional oil and gas resources

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Message: Re: Wisdom in potential share consolidation? - drandres

Doc, the consolidation of the shares on a 10 for 1 basis would certainly help with institutional buyers that would like to use margin and for retail holders wanting to do the same. My big concern with any consolidation is from past experience where consolidations have generally seen a retreat in share prices especially when there can be long periods between drilling results, like we are in now.



The other concern would be on any poor test results from the initial wells as they work out the best method to extract the gas. We may have a number of well results that are not spectacular in the initial testing phase that would drive the share price significantly lower especially if the share price was at $5. My thinking here is that less than stellar results could drive a $5 stock to $1, but our current 50 cent unit price may only drop by half before Exxon has worked through a modified testing plan. Regards Paul

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