>Boy I'll tell you what. reading that last post by Soly looks to me like a seperate house setting up in Australia and we stay in Hungary. I really hope I'm wrong.

Hey Lifer, you should relax, it's the weekend you know :)

However, if you read Falcon's latest MD&A you will sleep better tonight.

FALCON OIL & GAS LTD.

FORM 51-102F1

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009

The following management’s discussion and analysis (the “MD&A”) was prepared as at November 25, 2009 and is management’s assessment of Falcon Oil & Gas Ltd.’s (“Falcon”) financial and operating results and provides a summary of the financial information for the nine months ended September 30, 2009. This MD&A should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2008.

The information provided herein in respect of Falcon includes information in respect of its wholly-owned subsidiaries Mako Energy Corporation (“Mako”), a Delaware company, Falcon Oil & Gas USA, Inc. (“Falcon USA”), a Colorado company, TXM Oil and Gas Exploration Kft., a Hungarian limited liability company doing business as TXM Energy, LLC (“TXM”), TXM Marketing Trading & Service, LLC (“TXM Marketing”), a Hungarian limited liability company, FOG-TXM Kft. (“FOG-TXM”), a Hungarian limited liability company, JVX Energy S.R.L. (“JVX”), a Romanian limited liability company, and Falcon Oil & Gas Australia Pty Ltd (“Falcon Australia”), an Australian company (collectively, the “Company”).

Then again read this part of the same MD&A that will remind you that Falcon owns 75% undivided interest in the Beetaloo Project.

Beetaloo Basin, Northern Territory, Australia

On September 30, 2008, Falcon and Falcon Australia consummated the acquisition of an undivided 50% working interest in an aggregate 7,000,000 acres in four exploration permits (the “Permits”) in the Beetaloo Basin, Australia (the “Beetaloo Basin Project”) pursuant to the terms of a Purchase and Sale Agreement, as amended on October 31, 2008, (together, the “Beetaloo PSA”) with PetroHunter Energy Corporation and certain of its affiliates (collectively, “PetroHunter”), each of which is a non-arm’s length party for the purposes of the TSX Venture Exchange (the “TSXV”).

On June 11, 2009, pursuant to a second Purchase and Sale Agreement (the “Second PSA”) with PetroHunter, the Company completed the acquisition of an additional undivided 25% working interest in the Beetaloo Basin Project. Under the terms of the Second PSA, the principal consideration being paid by the Company for this transaction was the exchange of the $5,000,000 note receivable from PetroHunter. In addition, the Company has agreed to pay certain vendors who had provided goods or services for the Beetaloo Basin Project, prior to the Company acquiring its 50% interest in September 2008, in exchange for inventory and operator bonds of approximately the same value, and has relinquished its right to the unexpended testing and completion funds of the Buckskin Mesa project as discussed below. Upon closing, the Company became operator of the Beetaloo Basin Project, and PetroHunter and the Company entered into an escrow agreement governing the release of all remaining common shares of Falcon previously issued to PetroHunter.