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Is Falcon's share 22.5% of roughly 4 million acres?? Or a net of just over 1 million acres. If one looks at the slide it shows our net acreage at 1.4 million acres with 30% status. We're now at 22.5% so our net acreage is roughly 1.04 Million Acres. So, would the calculation be based on net value per acre?? Just wanting to clarify.........
Nice find Oleo,
If we look at that slide shown at the 8;20 mark (from POQ's 2015 Pan Pacific Hotel presentation in Vancouver) -- you will see under the third step heading of "Appraisal" that way back then shale gas acreage in the US was valued around $4009 per acre. I think that was also when nat gas was trading much higher in the US back in 2015, but those higher gas prices in 2015 are fairly comparable to the price points currently for nat gas in Australia.
Therefore, that valuation per acre may have some good correlations to what we might see for Beetaloo acreage values. However, that won't happen until we reach the next required level shown on stage three -- which is actual "production" of gas and not just flow testing -- with actual production scheduled for 2026.
If we look at JUST the one million acres in the Core deep blue area of the Beetaloo (after "production" is happening by 2026) -- and we give Falcon that same valuation of $4009 for Falcon's (22.5%) 225,000 acres share of that one million acres -- we would be looking at $900,000,000 US to Falcon's side of the ledger.
On a fun note. If that camera pointing at POQ was turned 180 degrees -- you would see my smiling face in the front row from that Keith Schieffer organized Oil and Gas seminar in Vancouver -- (where they served some nice white wine and appy's afterwards -- LOL).
@BeetaLong
do you mean the slide at 08:25?
https://www.youtube.com/watch?v=ugE08bg9Voc
C1 -
I posted it last week!
Schlemiel posted Cavendish's report on the 26th.
There are many great posters on this board with lots of good ideas. Maybe someone can answer my question? With such great results why has there been no new research out from Cavendish or Tennyson? Should these results not invite a big re rating on values? Or are these companies no longer needed ?
Cove mentioned due to the John Craven link. He ultimately was behind both cove and falcon. He indicated to me that this was bigger potentially than the sucess of cove.
Hi, Beetalong, what values are you using here or what do you remember? I did not mention any values in my message.
Beetaloo,
there is an old presentation, I think somewhere 2015/2016 or even older. In which several values per acre are mentioned for different stages of development (exploration/testing/production etc).
I do my maths on these values.
Can't should be in a PDF somewhere on the internet archives, or in an old youtube presentation.
Hello everyone,
These are wonderful results!
Quick question: what is the total amount of money needed for the 2024 to 2026 program? Or how much money does Falcon need?
Are there already approximate values?
Thank you for a brief answer.
I find Sandydune's approach very interesting and think it is quite possible.
By the way, I watched Phillip's video. A real fox.
He knows exactly what he's saying and why he's saying it. He won't say or do anything to weaken his negotiating position.
Because of his shares and options, a successful and good sale will put a big chunk of money in his pockets.
And I think that's a good thing, because we all benefit from it. A small apartment on Lake Garda would be my dream....
The landscape is beautiful and the climate is mild all year round (I'm a bit older now with Falcon).
And our Italian neighbors are really lovely people.
Maybe my building savings contract and a good sale price for Falcon in 3 to 4 years will be enough....
Cove Energy has been mentioned here several times. I had a look at the Wikipedia page. Very interesting!
I also assume that the big players on the market are now looking very closely at what is happening in Beetaloo. Very closely!
Let's take a look.
Best regards
Based on the Q&A session, It doesn't seem like we have an immediate need for cash until several months down the road. By that time, the equity market may be valuing falcon much more favorable and an equity raise much less costly. My point was there are creative ways perhaps to raise cash that may be less costly. Our leader has been very creative to keep us in the game for years so I have confidence he will make a good decision for us who wait.
What if the debt raise was not traditional bank debt? Yes, debt becomes a priority over equity but it can be useful and perhaps less costly give the current stock value if we were forced to raise cash at these levels. If we need $20M-$30M US to get through the pilot program, the equity market at these levels would cost around 20%. What is someone or a group put up the $20M-$30M in the form of a debt instrument with a 3 yr balloon offering 15% accrued interest plus received a 5% equity kicker? That would offer a great opportunity to the unconventional lender and at the same time save falcon considerably on an exit at $1 per share, assuming my math is correct. Just thinking.
We don't need involvement of a creditor on our balance sheet, a recipe for disaster in terms of corporate control. Stick to placings which I believe would be warmly welcomed now commerciality's (partial as we await the 90's flow rates and further fracking) been confirmed.
We don't need debt. No debt. No debt. No debt. Debt is a cancer in small companies. It destroys equity. A small company has no choice but to dilute equity. if it cannot pay its way. Share placing, warrants and selling a further stake in our licences to pay the company bills until cash-flow starts or until monetisation (ie takeover). That's just the way it is when there's zero cash-flow and a diminishing cash in the bank
Smallfish9: With the short-term time frame planned before Falcon exists this project - especially after the needs exist to actually acquire debt to drill a well(s), I don't know if any lender would be willing to go to the trouble? That's just my thoughts off the top of my head.
Never really got any input on the idea that Falcon might only have commit to 1 1/2 wells prior to any sell. The company will be required to participate in the SS-2H to obtain rights to that 6400 acre participation block. The SS-3H well will be drilled after Falcon is qualified to receive the additional Tamboran carry of 3.25 million towards its portion of the SS-3H well which I believe covers about half its cost? Concerning the SS-3H well being drilled on the same pad (participation block), would there be any real reason for Falcon to participate in that well since it has already earned rights that acreage? As I see it, all Falcon would lose is their share of the production of that SS 3-H well. Likewise, on the SS-4H and the SS-5H well. The future produced gas of these three wells would only minimally impact Falcon's sale price of its 22.5% of 4.6 million acres. There may not be any need for much dilution, sale of assets or debt as you mentioned.
This scenario may not be correct as I'm not clear on how the sole-rights clause works and how the participation acreage blocks are laid out. Maybe someone who has better knowledge can address this.
With the establishment of considerable 2C, where is everyone's opinion at on raising cash via debt?
Lol, only an American would believe that there are no shale development projects outside of the US. The constant US technology rips me up...
This ausbiz link below will require an email for login, but that is all -- there are no fees required. This video interview with Riddle covers the news on the flow rates along with a fair bit of discussion on the re-listing of Tamboran in the US and how that will generate allot more attention on the Beetaloo as the first real shale gas development outside of North America. There is also some good points made about Beetaloo gas replacing coal fired plants in Asia and the East Coast of Australia, as well as Riddle's ridiculous LNG terminal in Darwin which he will only need around 5 billion to build.
https://ausbiz.com.au/media/this-is-the-moment-weve-been-waiting-over-10-years-for?videoId=34608
Every board needs a narcissist. We have Green L.
Green lantern . Do you never just get fed up being an idiot !!
Green is talking CND$..not US$. Also reminds me of bigones as he pats himself on the back and tells us how great he is.
I sold at .20 cdn, the otcbb is tough to trade because of market makers. I was a long term holder at first but realized this wasn't a long term hold after 4 years of pain. It was solidified when POQ diluted the stock for .14P when it was trading at .17P and pulled the rug out from everyone. He is quite content in pulling in his $600,000 a year, quite content!
Longknife: I have no direct connection to the future :^) I was just being conservative with the 4X figure. I would hope 6X - 7X would be a better figure but then again those are just my guesses.
Shalamar9 - I believe they will do an IP-30; IP-90 and even an IP-120 on both wells. I do recall seeing they were going to be going directly into the pipeline with these IP flow test(?) Never seen that done but I have read they do that in WY in the US in areas that are more sensitive to open flaring. I assume they use a skid mounted mobile processing unit - I have seen those units but have never seen a flare test utilizing one - that's a good question for Philip.
805slo: That was what I was told from a very knowledgeable source. I also questioned that, but I assume Liberty is not going to move equipment in place until they can frack both wells. It could be an issue with pad size and needing to move the rig off location before fracking trucks can be moved onto pad? Not a big deal as I mentioned - With Liberty's new equipment/personnel, it will only take them about 2 weeks to frack each well. Then we have the next 4 wells - will they be done the same way - I'm guessing so. Thats not uncommon in the Permian Basin as you will see 4-6 wells drilled before they ever move in fracking equipment.
I'm in the US and the 52 week high is $.162
Maybe your on the wrong exchange, tsx-v is where you want to be. Its first come first serve totally different on the otcbb!