If with several months to go before year end , falcon has ruled out well testing in 2010---there is only one scenario that this is not bad news. That scenario is that potential jv partners have made it clear that they want to test the well as the operator and only after an agreement is concluded. An excellent result pre jv would compromise a jv negotiating position. Also they may want extensive fracking of the multiple zones-far exceeding the falcon budget. If no jv is announced in the next 60 days---then the news is just another divine curse of the bird.

If a jv is announced the private placement extension would make sense as funds are likely to increase. This would also explain their willingness to commit greater than 10 million to the project in 2011.