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Yes and so then is his compensation. But what the hell everyone is happy this man. Nothing will change. I accept ,throw in the towel. Hopefully there will something left for me and all shareholders.
That is for large cap companies not sub 150 million dollar
companies. Would you pay 882 thousand to a officer of a company worth 50 million ? And if we base any salary on potential how about the potential for a loss, like every year he has been a CEO.
THE ARTICLE YOU REFERENCE IS A JOKE IN OUR SITUATION. Poods
BO...your number is fictional.
First of all market cap is 146+ million US and 104 S in UK . The Karoo has lots of potential, Hungary had lots of potential, man if our returns were based on potential I'd be rich, but let's base the CEO's pay on potential ? Stock options are for performance or are suppose to be , but you think hoping, wishing and potential allows POQ to make 4+ times the median wage for a company this size. Just think of it this way his salary was about 1/8 of the cash on hand in year 2018, 1/9 in the year 2017, last year we raised more money , diluted and continued to pay his salary. I think 4+ times the median salary for a company this size is excessive , but you are right lets throw in some more money and stock opions for Karoo' potential also.
No need to visit with POQ because he does not listen and / or understand what 50+ years of investment experience has taught me. As I have mentioned in the old days I would made an effort to change things as I did many years ago, but too old to try and sense most shareholders are happy to chat and hold.
I have felt for years POQ should be entitled to a salary in the $200-300k range, given the generous option structure he has. At $600-700k, his options should be no more than 20% of his current options. Thanks for your comment. Poods
Looks like POOQ is still upset POQ doesn't take his calls.
Poods: I expect even you would agree that $157K for a CEO of a $200 million dollar company with this potential might be a little on the cheap side!
This is a garbage research similar to trick photography. A credible photograph of FOG currently is, a miniscule company spending too much on management while fortunately owning an interest in a potentially lucrative gas play in Australia.
Nice Find BO. Is this the type of article on which you base your investment research? Looks quite reliable and accurate. Amazing in depth research!
"Is Falcon Oil & Gas Ltd. Growing?
Falcon Oil & Gas Ltd. has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 433%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow."
The earning and revenue growth is a side of Falcon I didn't know about. Now I know how you come up with some of your opinions and concerns. Thanks for sharing.
The article is in Simply Wall Street, released 15 hours ago. I read it on Yahoo Finance.
POQ! Show us the article!
Boy, it's time for some good news. Stopped buying even below 15 cents. Want to see what happens, especially dilution. Also article on POQ pay the median salary for a company this size is 157 thousand dollars, his is 685 thousand dollars.
Longknife: Falcon's undivided 30% interest still has me a bit puzzled - Origin is the logical buyer so that they can put together 100% and then sell whichever areas they wish. Falcon could conceivably sell its undivided interest in the Kyalla to a third party - that might be a bit awkward but certainly doable as long as Origin agreed. As I understand it, Falcon desire is to sell everything at one time. If the Kyalla proves successful it would likely be the target of the stage3 wells. If that is the case, Falcon would hope to get a nice sell price for the Velkerri dry gas and also the wet gas as determined by the next well - if the company does not get a fair price then I understand Falcon would consider doing another raise (or sell off a percentage of their total undivided holdings) and prove up the commerciality of the Velkerri shale. This situation could carry us into another year of appraisal drilling (stage4) - Falcon DOES NOT want to leave money on the table. The future is very unclear at this point and much of this is just guessing. As we complete the Kyalla the picture should start to clear up. Maybe by the end of this year we will have a better idea of where Falcon is headed.
I had thought that if the Kyalla was really successful the rig would remain in place and the stage 3 wells would be immediately drilled - saving money and time. Then OrsonM pointed out that Origin/Falcon are running up against a deadline to drill the EP76 Velkerri wet gas well. I know initially Origin was very high on this play and wanted to see it explored so they will make sure it is timely drilled. It is all merky for us trying to predict from the outside looking in - we will just have to continue to show more patience.
For now I have my fingers crossed for a nice Kyalla discovery - after that I will move on to worrying about what comes up next!
Wet, (or anyone)
So since we clearly don’t have the money to do much of this, how do you see this playing out? Debt? More dilution? Obviously most of us are in this for price appreciation. Do we think falcon will entertain offers for say the kyalla alone? Then maybe the velkerri or just wait until they have all the areas ready to sell? And is that even a possibility given the cash issue?
Thanks in advance
BO: June/Kyalla could be very encouraging but don't forget the Amungee's Velkerri dry gas prospect that is already considered a contingent resource. The Middle Velkerri , with its two zones, could be proven as a commercial prospect in and of itself. Santos's wells are considerably deeper, thus more expensive, yet they seem pretty excited about their prospect. Also Origin was very pleased with the Amungee well as it exceeded their expectations - that tells me it holds promise. If the Kyalla proves itself then we could have stacked plays - Velkerri B and C along with the Kyalla on about 20% of the Beetaloo and the two Velkerri's on the balance of the concession. The yet to be drilled Velkerri Wet could offer even additional asset value. From what Gabor said at an AGM, the two Velkerri dry shales are pretty much the same rock though the C does have a bit more challenges - at one time it was mentioned that the two Velkerri zones were just a flip of the coin as which to frack in the Amungee well. Great promises at this early stage. GLA
Nice article, explains a lot , commercial concerns due to high regulatory and drilling costs. Guess we'll know in June.
imho this article fails to highlight the determined political backing (both NTG and Canberra) its received and it also fails to highlight the strategic importance of NT gas for export to Japan and China.
Both Santos and Japan’s Inpex have suggested the NT’s shale gas production could be exported. Santos stated in mid-February that the McArthur Basin’s gas resources could support a future backfill or expansion of its Darwin LNG terminal. Inpex’s president director for Australia, Hitoshi Okawa, stated last September that Inpex’s acreage in Beetaloo might eventually underpin an expansion of the Ichthys LNG project.
If shale gas developers looking to the export market, NT production may fail to reduce domestic gas prices as officials. Toleman says: “If Beetaloo is developed I expect LNG exports to play a significant role. This will reduce the impact on the Australian domestic market.”
While the future is looking brighter for NT’s shale gas sector, challenges remain. The need to reduce costs is first among these.
While early results in Beetaloo were encouraging, “a lot more work is needed to prove it is a viable play”, Graeme Bethune, CEO of Australian consultancy EnergyQuest, tells Petroleum Economist. He lists the NT’s higher regulatory burden, remoteness of the plays and the fact that drilling had to be suspended during the wet season as additional challenges. In addition to these challenges, Toleman highlights a lack of existing infrastructure .
Onshore developers in the NT must adhere to a code of practice that the territory’s government introduced in June 2019. The code mandates enforceable standards and requirements on key areas including well operations, surface activities, wastewater management and methane emissions. Falcon, for example, stated on 20 February that Origin would drill water impact monitoring bores at Kyalla 117 over the next month in order to comply with the code of practice.
Levy agreed that bringing costs down would be a major challenge for drillers and says equipment scarcity, high labour costs and stricter regulatory requirements had made stimulated wells in NT uneconomic up to this point. While noting that costs would eventually fall as operators grew to understand the region, he warns “there is a real possibility that operators will be unable to economise under Australian conditions to a level that would make the play commercial”.
28 Feb 2020
Jemena’s Northern Gas Pipeline (NGP), which has a capacity of 32.85 PJ/yr, delivers NT gas to the east coast gas market. The pipeline operator says it could expand the NGP to 255.5 PJ/yr should shale gas exploration justify the multi-billion-dollar commitment.
“If Beetaloo shale was in Texas and had to sell at Henry Hub prices—$2/mn Btu—it would almost certainly be uneconomic” Levy, Rystad Energy
The federal government’s efforts are aimed squarely at reducing east coast gas prices, which are higher than those seen on the spot LNG market. But it is those same high domestic prices that have made shale gas development possible.
“High domestic gas prices give operators a much higher breakeven price to work with. For example, if Beetaloo shale was in Texas and had to sell at Henry Hub prices—$2/mn Btu—it would almost certainly be uneconomic,” Daniel Levy, the Sydney-based head of Rystad Energy’s Australasian upstream research, tells Petroleum Economist. “However, selling at east coast prices of $5.50/mn Btu, assuming the current price is a short-term trough, offers a much more achievable target.”
The breakeven price of the 5tn ft³ Beetaloo play is $7-9/'000 ft³, Wood Mackenzie senior analyst Daniel Toleman tells Petroleum Economist. He adds that the breakeven would be lower if appraisal activity confirms a larger resource, dropping to around $4-6/mn ft³ for a 30tn ft³ resource.
Falcon says the joint venture would evaluate all the technical data gathered from the conventional cores, sidewall cores, DFITs and wireline logging in order to determine the Kyalla Formation’s prospectivity. Origin Energy operates EP76, EP98 and EP117 with a 70pc stake, while Falcon owns the remaining 30pc. A second well at EP76 is to be drilled later this year.
In Empire Energy’s annual report, published on January 31, the company says drilling approvals for its planned 2020 exploration well in EP187 were near completion. Recently finalised mapping results of its seismic data have determined two well site locations, with drilling scheduled to begin once the wet season has passed and regulatory approvals have been secured.
The sheer size of the NT’s shale gas potential has made it a tempting target for developers eager to replicate the US shale gas revolution in a market with extensive LNG export infrastructure and tight domestic supplies.
The successful development of Beetaloo could lead to a major new source of gas supply for the domestic market at a time when the Australian government is negotiating with state and territory governments over boosting the volume of gas production earmarked for local consumption.
The Australian Competition and Consumer Commission (ACCC) warns, in a February 18 report, that east coast states could experience gas supply shortages in the long term. The commission says averting a shortfall in the country’s southern states from 2024 would require more upstream investment in the south, expanding transportation capacity to facilitate increased NT and Queensland gas shipments and at least one LNG import terminal to be developed
Australia rejoins road to shale riches
Shale gas developers are beginning to ramp up their exploration efforts following the end of a freeze on fracking approvals in the Northern Territory
Australia’s shale gas sector is showing its first true signs of activity since the Northern Territory (NT) decided to lift its two-year moratorium on hydraulic fracturing in 2018.
The Darwin government’s ban on fracking, introduced in 2016, derailed Santos and Origin Energy’s exploration plans, with both companies having only drilled a handful of wells up to that point. The decision, prompted by growing environmental opposition to fracking, froze development on the federal territory’s estimated 500tn ft³ shale gas resource.
The NT lifted its ban after a 15-month independent scientific inquiry reported in March 2018 that the risks surrounding fracking could be mitigated if its 135 recommendations were implemented. The government adopted the inquiry’s proposals, lifted the moratorium and was then able to approve the new work programmes of leading Australian independent Santos and E&P company (and energy retailer) Origin Energy in June 2019.
Santos revealed in its annual report, published on February 20, that its production test, at an almost six-year old well in the MacArthur Basin, has delivered better than expected flow tests. Meanwhile, Origin successfully completed the first of a two-well drilling programme in the Beetaloo sub-basin. Australian independent Empire Energy, meanwhile, reported in January that its recently completed 2D seismic study had led to the identification of two drilling targets on its Beetaloo acreage.
Santos also noted in its annual report that it has completed a diagnostic fracture injection test (DFIT) and four-stage stimulation of the vertical Tanumbirini-1 well in exploration permit 161 (EP161). Santos operates EP161, EP162 and EP189—which form the Beetaloo/McArthur Project—with a 50pc stake, while NT-focused private E&P company Tamboran Resources owns the remaining interest.
The vertical well test of Tanumbirini-1, which was originally spudded in June 2014, flowed at more than 1.2mn ft³/d, the company says. Santos intends to drill two appraisal wells in EP161 once the NT’s wet season ends in April.
500tn ft³ - Northern Territory shale reserves
Origin, meanwhile, has successfully drilled, cased and cemented the Kyalla 117 N2-1H ST2 well in EP117, junior partner Falcon Oil & Gas announced on February 20. The well, which targets the Lower Kyalla Formation, has been drilled to a total measured depth of 3,809m, including a 1,579m lateral section drilled at 90 degrees.