OK. Yes, CEO Rob Macaulay was on the private investors call tonight. He spoke for about 1 hour. As I indicated on my earlier post, he did not report anything that is not already publically available.

That being said, I'm sure most of us just wanted to know what specifically is going on; in particular Australia.

Australia Beetaloo Basin

This is what Rob reported: There is still about 8 inches of water covering the Shenandoah-1 well. He expects the rig will be on the well by the end of July. After they finish drilling to the target depth, the crew will then come in to test 5 levels with flow rates for each level. After the flow rates are completed and fully documents (I believe with some planned fracturing) they will then re-cap the well. Rob stated that the purpose of the Shenandoah-1 well is to obtain additional intelligence that will tell them where to drill next. This information will be shared with Hess.

A press release is coming that will announce the completion of the participation agreement and joint operating agreement arrangements with Hess. Hess will then commence with their US$40 million 2D seismic work program, which will go well (no pun intented) into next year (2012). The full details of the agreement can be found in the Letter of Intent.

Hungry Mako Trough

Work is moving forward in Hungry with their newly announced JV partner NIS. The participation agreement should be completed within a couple of months. For details, read the Letter of Intent.

South Africa Karoo Basin

South Africa in now rated as 5th in the world with potential natural gas resources. The moratorium is still in place. According to Rob, the reason for the moratorium is that South Africa does not have the regulations in place to monitor the exploration and drilling/fracturing. Shell was all ready to begin drilling and fracturing, but Falcon wants to begin a 2D seismic work program. Once the moratorium is lifted, Rob welcomes Shell's work program to go before Falcon; it will be Shell's work funded by Shell.

Rob made a comment on fracturing. He believes it is safe when followed by adequate regulations. He used an example of the potential of getting food poisoning when eating at restaurants. You don't disallow the existence of all restaurants because someone might get food poisoning. You regulate the industry and introduce standards to minimize the risk. If someone does get food poisoning, you shut the restaurant down.

Conclusion

Hungry: The work is moving forward with NIS as a JV partner

Australia: The Shenandoah-1 well is on track for completion this year. Hess will move forward with their 2D seismic program.

South Africa: Moratorium is still in place. Once lifted, Falcon wants to begin their 2D seismic program. The hope is that Shell will begin their drilling exploration work to "prove up" the resources.

During and throughout the phone call, there were additional details provided by Mr. Macaulay that filled in the gaps on his personal and professional approach to managing Falcon in a prudent manner. He did mention they have hired a PR representative, so more attention can be given to keeping the shareholders better informed and to communicate to the general public on the work of Falcon and the immense potential.