If anyone would like to feel better about Falcon's land holdings, they should do some reading on recent developments in North America's shale gas plays. In both Canada and the US there is a battle brewing over Fracing fluids and techniques. Some of the major issues include:

- It has been documented that cancer causing chemicals that are used in fracing are showing up in water wells and drinking water sources. This violates drinking water protection acts and has government agencies and environmetal groups up in arms. Fracing companies are refusing to disclose these chemicals claiming that they are a trade secret and they will lose competative advantage.

- The huge volume of fresh water used to frac a well has to come from somewhere. Currently, there are fracs being performed that use up to 100,000 m3 of fresh water! In areas of water shortage this is a huge factor. In Canada, oil companies are drilling water wells to meet their water supply needs. The problem there is that rural residences are seeing their own wells (used to supply their homes) die out or dry up.

- Treatment and disposal methods of contaminated water from frac flowbacks are being highly scrutinized.

- The decline levels of production in a few of the more recent shale finds are higher than expected. To maintain production rates there will have to be a huge level of drilling activity. Economic viability is being questioned at todays NG prices. I have heard as much as a 30% decline per year in the Marcellas play.

If you look at some of these points it is not hard to understand why oil companies are aggressively making aquisitions elsewhere in the world. IMO the focus will be shifted off of expensive and controversial shale gas plays in North America in the next few years.