The terms of the Agreement include a cash consideration of US$3 million together with the issue of 97.86 million Falcon shares ("New Falcon Shares") to Sweetpea. Based on Falcon's share price, at the time the Share Purchase was agreed between the parties of CAD 0.20, the total value of the consideration is CAD 22.6 million. Upon completion of the Agreement, Sweetpea's shareholding in the enlarged share capital of Falcon will be 10.7%.

The New Falcon Shares will be held in an Escrow account with the New Falcon Shares locked up for three years, and Sweetpea, commencing on the date of closing, being permitted to sell 15% each year during the lock up period.

Why would Sweatpea (PetroHunter) Do this? Because it is in their best interest if a few things play out----especially one very likely possibility......in my opinion.

First, Falcon's new leadership has been very open lately about their desires and history of the leadership supports this----namely, they really don't want to be in the oil and gas production business....Hess is working to just be in only the oil and gas production business. So consider this: Falcon intends to sale to Hess---- FOGA.

SO---assuming the seismic data is as everyone expected or hopes......huge possibilities in both conventional and unconventional oil and gas development are in fact a fact. One has to ask the question, why would Hess want to share this potential fertile oil and gas field with a bunch of farmed in companies? I don't think they would. They certainly have the assets to bring the reserves to market on their own. In order to facilitate a sale Falcon has to have control of all of the permits through FOGA. Sweatpea (PetroHunter) gets a few million dollars up front but stands to make huge money through the issue of the 97.86 million Falcon shares in short and long-term possibilities.....especially if FOGA is sold to Hess. In reality, Petrohunter will stand to see an immediate improved value through their holding of Falcon Shares. Falcon was very clear that they wanted to consolidate their position with FOGA.......which simply means more control. If Hess were to offer some big number based on the seismic information......both Falcon and SweatPea immediately have a new value.......one that we all will experience. While some mention has been made of Market Cap on this board it would be irrelavant to a purchase of FOGA. If Hess wants and can afford to pay billions for a return of a potential couple of trillion.......the market cap would be no consideration on a buy/sell agreement. It just does not make sense that SweatPea would walk away from a potential huge return unless they see a way to expedite their return OR...........they simply believe nothing is there and they are taking the money and running. I highly doubt this second point. So----I think we should not be suprised if in the next week to a few weeks by a sell of FOGA to Hess.......its a win-win scenario........Hess gets the gold.......Falcon takes in a few billion and Sweatpea goes cash large to....almost immediately. Remember------Falcon Leadership recently stated "give me a little time and I will make this a 10 bagger" Granted......we each want more than a 10 bagger, but at a 10bagger valuation Falcon pokets a few billion immediately.

Perhaps a stretch, but one we should all consider.