"they were interested in pursuing other companies that had producing assets but no cash"

I think what Phillip would be referring to is using some of the spare cash to purchase producing oil or gas assets especially with the price of oil falling so low. Phillip should also be looking at another $20 million in free cash flow from a Chevron deal, given that we are looking at selling Chevron 75% of the Karoo! If Falcon has $30 million in cash - they could buy up either a portion of an existing oil and gas company that has strong producing assets but little cash or they could buy up a royalty stream from a similar producing asset, which would give Falcon regular cash flow going forward.