Regarding Simply Wall Street check some of there other missives. They are basically boiler plate commentaries, with a company name and some data thrown in. This is not a service for real investment advice.
I, like many here, believe POQ is OVERPAID, but so is Anne Quinn, CFO. I don't begrudge them for their compensation. Many on this board could perform at least as well as POQ has and would appreciate milking that salary forever. Quickbooks, rather than a CFO, would have sufficed to date. Blame compensation committee directors Smith, Mayorets & Gilbert. BTW they are the same directors for the audit and reserves committees as well. That is common for companies of this ilk. Benchmarks tend to be more accurate for 'real' companies.
I don't know how most posters found this thread on the LSE, but as in my case, suspect it was recommended by POQ.
BigOnes & Poods: hang in there. I'd much rather read about real concerns affecting the company and hence share price, than read repeated defense of POQ. NOTHING is going to affect Falcon's share price until we read about the successful results in the Beetaloo. Until then, it's all mental masturbation & ego (some believing more knowledge than the rest).
Let's hope we receive positive results, sooner, rather than later. Good luck to all.
In answer to a few recent questions and comments, Falcon is a hugely, speculative company that NONE of us has any influence over. Even if everyone on this thread pooled their votes we would not be a pimple on a gnat's ass, versus the largest listed owners of stock. If the Falcon website is accurate, Lamesa/Renova, Burlingame (owned 125,231,739 shares, now owns 48,772,302 shares... that's 75,000 fewer than in 2018), Persistency PE had 59+ million shares and are no longer listed in a list of significant shareholdings. Considering the number of shares already sold, I'm surprised the share price has remained fairly stable.
From the Falcon website: as of the close of business on 31 October 2019 (the “Record Date”) there were 981,847,425 Common Shares, issued and outstanding. "To the knowledge of Management and the Directors, as at the date hereof, the only persons who beneficially own,directly or indirectly, or exercise control or direction over, more than ten percent (10%) of the issued and outstandingCommon Shares are as follows: Lamesa Holdings S.A. (3) 157,083,634, 16.26%."
PANAMA, REPUBLIC OF PANAMA--(Marketwired - July 11, 2017) - Lamesa Holding S.A. ("Lamesa Holding") announced today that it has acquired beneficial ownership of 157,083,634 common shares (the "Shares") in the capital of Falcon Oil & Gas Ltd. ("Falcon") from Renova Assets Ltd. ("Renova"), a company acting in concert with Lamesa Holding. Lamesa Holding and Renova effected the transaction pursuant to a share sale and purchase agreement dated July 11, 2017, pursuant to which Renova is transferring the Shares to Lamesa for aggregate consideration of CAD$65,078,745.3 or CAD$0,41 per Share.
Additionally: We still haven't gotten out from under the Bruner influence (SweetPea) that is still overhanging any upward potential. And, Burlingame (a hedge fund) lightened up by ~ 75 million shares. How many more are they ready to sell? I don't know whether Persistency changed names, but that would have been another 59 million shares that should have affected the price.
5. Considering the current natural gas 'depression', how might you foresee the timing of future negotiations progressing? And over what time period? POQ's Answer-The following is a quote from RBC with regard to Australian gas producer Beach Energy We like Beach's focus on East Coast gas with long-term pricing in the $8-10/GJ range providing a 'sweet-spot' for producers, who can operate at healthy margins, all the while satisfying consumers and government alike. The long-term nature of contracting gives Beach a degree of pricing safety to offset more volatile oil exposure that is becoming an ever more prominent part of the portfolio.
My recent observations:
This announcement back in January '19 is confusing: https://www.proactiveinvestors.co.uk/companies/news/49666/falcon-oil-gas-completes-purchase-of-sweetpea-stake--59145.html Until someone can identify the current holdings by SweetPea and any other Bruner associates (including which exchange they might trade), along with the court orders from the bankruptcy case in Denver, it appears there are probably a lot more shares overhanging normal trading. Whenever the drilling, testing, and other empirical data are released, we might witness an up move. However if there are still tens of millions of shares that 'might still be court ordered' to be sold, I'd be surprised to see a significant move, unless & until we have a buyer.
Part 1Newtofo, et al- Just had a few minutes to check this board and found your post from 29 Jan '20, re Hess and POQ options exercised? Around the same time frame I had emailed POQ about some questions. As a shareholder, I would have liked answers to all of the questions. Here is the email exchange:
It's been a long time since I've emailed you, but have been following the news releases and the LSE blog. Considering all of the delays and disappointments with Falcon's shareholder value, I thought today's LSE post was pertinent and worthy of asking you directly:
Hess and POQ options exercised?
If anyone can dig deep enough -- it would be good to know if Nicolas Mathys exercised the 10 million Hess options and whether POQ did the same with his options. Both of these options have now expired, but there has been no news as to whether they were exercised - with the resultant increase in Falcon's bank account. I have tried INK on the TSX -- which is where Falcon insider action is supposed to be posted, but there is nothing listed in the past six months This might be because the Hess options don't represent an actual insider trade -- but the POQ's options should be shown if exercised??? POQ's answer- No Options or warrants were exercised by (I assume this answer was for both not exercising their options)
1. do you have any idea of the number of shares still held by SweetPea or any other organization in which Bruner was involved? POQ's Answer-The last reported number we have from Petrohunter was 61,708,000 as announced on 16 Jan 2019. They may have sold more since this but we have no way of knowing unless they inform the company.
2. if additional funding is needed by Falcon have the largest shareholders shown interest in providing what might be needed as debt, rather than further dilution? POQ's Answer-No comment
3. do you know whether the actual members of the operations team have experience with horizontal drilling? POQ's Answer-Yes
4. Based on your recent quote:
Falcon Oil and Gas CEO Philip O'Quigley said:"While it is unfortunate to have encountered these operation difficulties, which will add to the time and the cost to drill the horizontal section, the joint venture partners remains as optimistic about the potential of the Kyalla and we look forward to updating the market with further updates in due course."
when might you expect the next significant update? POQ's Answer-Just issued a press release this morning
Correction: the Suriname basin is off the coast of South America, not Africa.
Obviously Apache is on a much different level than Falcon. Here is the result of their announcement of the biggest one-day gain since 1973, after the oil and gas exploration company announced a "significant oil discovery" off the shore of Suriname in Africa.
We can only hope that we experience a similar immediate reaction!
Very little, if anything, posted on this board will influence the company. POQ's salary, timing & release of drilling results, and any other concerns already posted. However, when facts are presented and are of concern to many, that's not whining. As Greenlantern stated, it's called ACCOUNTABILITY. Do any of us have any influence? Probably not. We know that POQ is a regular on this board (at least that's what he's said & the only reason I found this chat room), so maybe we will see some issues addressed. All we can really do is hope for the best and eventually be rewarded.
Knight, regardless of the few million shares you might organize to get the bod's attention, it's chump change compared to the largest investors' holdings. They will move what's necessary to improve their investment. Our concerns are immaterial to them. Most likely the members of the board never took a dime out of their pockets, for the shares they own. When your basis is zero, you have nothing to lose.
Hey Lefty, I enjoy laughing. However, I utilize facts over BS when putting money into investments. My prior statements are all documented. Blindly accepting POQ statements as gospel, haven't produced anything for shareholder value. He arrived in 2012. 7 years later, we're at the same 0.15 share price. If that's whining, so be it.
We should probably be concerned with Falcon's Enterprise Value, rather than the market capitalization, for a theoretical takeover price. Everyone here seems to be interested in the potential share price and most guesstimates appear to be in pence. In 2006, when there was nothing but Bruner BS, FOLGF traded at a high of $6.24. No Beetaloo then, merely Hungary (and possibly some hope in SA). As I said yesterday, there is more to share price than revenue expectations from potential reserves.
Those of us with longer ownership histories have witnessed several changes with broker/dealers, analysts, IR firms & promoters. In no chronological order here are most of the names once involved: Rodman Renshaw (Houston), Fraser Mackenzie (Calgary), RBC (Joint Broker-London), Davy (NOMAD & Joint Broker), GMP SecuritiesEuropeLLP (Joint Broker), Canter Fitzgerald, Robert Whelan of Seeking Alpha, now Cenkos Securities (NOMAD & Broker). Does anyone know what happened to them? Is there no longer any interest from them? It sure would be good to have a recognized O&G analyst, investment bank or mutual fund manager supporting Falcon. (No Poods, I'm still against a reverse split to validate the price and gain their attraction.) Pounding the Beetaloo story daily, weekly and monthly, and repeating the magnitude of the acreage & reserves will attract attention. When the drilling results are released, Falcon's name will already be familiar on Google and other search engines. That's the most likely when the stock should begin moving up. As BO mentioned we still have tax loss selling and SweetPea's liquidation keeping a lid on the shares.
For those unfamiliar with the definition of enterprise value: value based on that revenue expectation (with some discounting for time and uncertainty) today. Stocks don’t wait to go up after a company has grown, they go up in anticipation of all of that future growth. Sometimes investors overpay or underpay for that future growth, or sometimes surprises happen, that’s what makes a market.
Although some might consider some of the content whining, $0.15 in both 2012 and 2019, demonstrates lack of success by Falcon's entire leadership group.
Happy Holidays and Good Luck to All
I don't intend to be a daily contributor, but having a few free minutes today I reviewed some notes. They are from conversations or emails with POQ, SEDAR filings and public information, trying to confirm information related to some recent posts. I'm not defending, nor castigating any posters. As Sgt. Joe Friday used to say: "just the facts." My notes date back well beyond 4/11/12, the day POQ was hired as CEO. In that month of April FOLGF traded between $0.09-0.11. That 2012 summer the stock traded at approximately the same level as today ~ $0.15. Considering the progress in the Beetaloo, one might assume the stock should be trading much higher. More than 7 1/2 years and we are still at $0.15. That's not whining. It's fact. Additionally, I could not find evidence of insider buying (a key sign of confidence) at any time. Management and the board have received stock options, but I found no information that any of them ever ponied up any of their own money.
POQ did not take over directly from Bruner. From a conversation in July 2013, he took over from John Craven when POQ stated: "John Craven's objective is to get in early, add value, sell or monetize. His (Craven's) last company, Cove, was essentially a shell bought for $2 million, raised $300-500M and sold it for $2 billion." POQ claimed that he was planning to follow the same game plan.
Considering the vast Beetaloo potential, I agree that raising cash should not be a problem. However the magnitude of dilution, would be relative to the size of the raise. None of us have an inkling about how much additional cash Falcon might eventually need. Hopefully it's next to zero and a buyer is already in the wings, awaiting some data from the core results. However, if POQ needs to follow Craven's history, the $300-500M range of Craven's raise to gain a $2 billion return is significant. If I calculated correctly, for every $1M raised at today's ~$0.15, 6.667 million shares would need to be issued. That's not including a discount an investment group would want, based on the then current enterprise value. We already have approximately a billion shares outstanding. Raising $300M would require about 2 billion additional shares. Hopefully, POQ won't need, nor follow Craven's history. Although a $200M difference might not be a big deal to XOM, HES or CHV, it would be significant to Falcon's total shareholder value in all three trading venues. Although that might raise a few questions here, it would be out of our hands. Again, that's just fact, not whining.
A bit more shortly:
It appears that some feathers have been ruffled. I don't add to this board very often & some might believe too frequently. I have posted a few statements & questions, based on my financial industry experience and my Falcon share ownership. I, like many here, have held this highly speculative, POS stock, since shortly after the Bruner carnival act began. My knowledge and experience warned me to stay away. However business dealings with Falcon and looking to add a speculative O&G stock to my portfolio, allowed for a costly mistake. Many on this thread genuinely add what they believe to be true. I appreciate those from the O&G business, who obviously add empirical info that most of us don't know. Others like to pontificate and demonstrate their superior knowledge, likely regurgitating the same officious sounding crap they've heard from POQ.
987 - We received more detailed information from you, than from the company. Thank you, but that's the reverse of how it should be. I don't recall whether any of the board members attended or were teleconferenced in. Were any of the largest shareholders represented at the AGM. Did anyone question what value Cenkos adds to the equation?
BO, et al At this juncture the future share price is pure guesswork. There is considerably more to a company's share price than potential reserves & revenues. And, it is likely the company will eventually need another round of financing. Also, I'm not as cavalier as some contributors here that dilution will not be meaningful.
Knight- I agree that $700K is an outrageous sum for POQ, for this stage company, but so is $250K for a CFO. Outsourcing this accounting function or buying Quickbooks for POQ to enter a few numbers, would be a lot less expensive. The entire operational budget is more than it should be. And, considering POQ's salary he should absolutely know who, and how many shares overhang the three markets in which Falcon trades. And if not in POQ's wheelhouse, Cenkos & any other Falcon advisors should have those answers. He should also know which of the largest shareholders will pony up when it's needed and already be discussing possible terms with the interested parties. I agree that Origin is not suppressing the share price. A higher Falcon valuation, would be beneficial to any of their financing needs as well.
Poods- I wouldn't hold my breath to receive vote totals, & yes, we need to confirm positive test results before anyone can predict the Beetaloo future. Considering some of your comments, I'd think you already owned enough stock.
Hydro & Villa - sounds like POQ knows more about the SweetPea bankruptcy than he has shared. Those details would be important info to shareholders.
Considering how long many of us have been Falcon shareholders, what's another year or two. Hopefully everyone will remain healthy enough to enjoy the spoils.
Poods, Impressive geological info today. The seller(s) are still at it. Most likely it's Bruner related. Anyone with half a brain would either be adding or remaining patient. I tried to find the latest list of the largest shareholders, but they don't make it easy. Neither Schwab Institutional, nor TD Ameritrade Imstitutional have any current info. I'm awaiting a reply from the TSE Venture for their recommendation to obtain the most recently updated list. As you can see below from Jan '19 the 18.1M shares you saw is far less than what is shown below. The dated info I found indicates that SweetPea was not the only seller. As of 2/2018 & 1/2019 via https://finance.yahoo.com/quote/FO.V/insider-roster?p=FO.V , but that's old info. Forgive the columns not aligning properly, but you'll get the gist: Insider RosterIndividual or EntityMost Recent TransactionDateShares Owned as of Transaction DateBURLINGAME ASSET MANAGEMENT, L.L.C.
DecreaseFeb 11, 2018 48,772,302
SWEETPEA PETROLEUM PTY. LTD.
DecreaseJan 15, 2019 61,708,000
*Insider roster data is derived solely from the last 24 months of Form 3 & Form 4 SEC filings.Interestingly, as of 10-31-19 Lamesa is the only group showing more than a 10% ownership position. Lamesa Holdings S.A. (3) 157,083,634 16% (this is formerly Renova who in 2018 showed 150,810,134, so they somewhat increased their holdings) Prior docs showed Burlingame owning 125,231,739 or 13.50%, so they lightened up. Possibly that coincided with the shares trading above $0.30 between April - Oct '18. The only Institutional Holder (shown at Finance.Yahoo.com) is Northstar Investment Advisors Llc 200,000 shares as of Sep 29, 2019. This small number of shares would not be a typical holding at this income oriented shop. I'd guess they might have encountered Bruner during his Denver days. Happy Thanksgiving all.
Impress might have been the wrong term. Without reviewing notes from the very beginning, I recall that he was responsible for decisions pertaining to both Hungary & SA. Neither have worked out. Additionally, I'd probably use an experienced geologist with Bakken background, since there are apparent similarities with Beetaloo. I'd also assume Falcon should have access to professionals from Gazprom, since it serves their interests as well.
We're ALL interested in the drilling & data produced. That, along with good negotiating skill, will determine what Falcon's shares might be worth.
I'll let you or B.O. recommend POQ utilize a video conference. You appear to have a much better relationship/history with him than I.
BTW: XMAS in Germany is surprisingly a worthwhile trip, considering it's winter. Took the family in the mid-90's. Looked forward to skiing the Zugspitze, but had to wait days for sufficient snow. When I finally rented my skis (indoors), I found a near total fog/whiteout. 2 runs and gone. I much prefer Colorado's mountains.
Still a newbie to this site and somehow while writing this post lost my comments. Hopefully, I'll learn moving forward.
First, the majority of posts continue to be constructive, but this is still a speculative stock. It's fun to guess the eventual takeout price (obviously the 30% Beetaloo position allows for optimism, but it's been an extremely lengthy wait for a payoff).
Darnit and BO: Agreed. This is a manipulated stock, especially when it is trading in 3 different markets. Some days Falcon 'trades by appointment' on one, while trading a few hundred thousand on another. Both POQ & now Cenkos should absolutely know, who and the number of shares overhanging each trading platform. The largest listed investors & SweetPea all had millions of shares and I don't trust anything in which Bruner participated.
BO: You're correct. With technology today Falcon would possibly spend ~$15 to have up to 100 participants on a Skype video conference. Hence, there is NO EXCUSE for all BOD members not to participate in the AGM.
Poods: I understand & appreciate the reason you thought a reverse split might be good in Falcon's case, but I previously mentioned my experiences with reverse splits have not worked out well, especially when attempting to maintain exchange status for lower priced stocks. Decades ago, trading issues of this ilk in wire houses required marking any buys 'unsolicited', after receiving management approval to input the order. Also I never accept the trade prints as accurate, with an issue of this price. Therefore, you and others hoping to pick up additional shares near the day's low, shouldn't feel bad. Until we learn who and how many shares have yet to be sold, you might still get another opportunity at a lower price.
WW: Agreed: compensation and final take out price are totally out of our control. Totaling all shares represented by posters here, we have very little influence over the major shareholders votes. What has Gabor accomplished that has impressed you? Is it his work on Hungary? SA? or Beetaloo? The brevity of the AGM is not an excuse for any board member to miss an opportunity for a video conference call. They are also shareholders and should want to make an appearance. You appear to have POQ's ear. Although I read that you won't attend, why wait for the AGM to get answers to the many questions posed on this board? If it weren't winter, attending the AGM would provide an Irish vacation write-off. I'll opt for a successful Falcon outcome and travel to the investor celebration.
Finally: Origin is 70% owner of our Beetaloo stake and is a much more stable investment. Which shares are most popular among posters here?
Enough for now & continued good luck to all.
987 and whomever else might be in attendance at the AGM:
I agree with WW that in-person contact with POQ would provide better answers. One can gain valuable insight when looking someone in the eye, but I won't be attending and appreciate your offer to be the messenger and ask the questions of POQ. Hopefully, I'm not asking too many. Possibly another attendee or two might assist or have similar questions. Although other regular contributors to this board may have discussed similar questions with POQ, I believe asking them at the AGM would be more valuable to average shareholders. I've always believed hearing answers "direct from the horses mouth," alleviates many misinterpretations.
1. Why don't you know the large seller who is keeping the cap on the share price? This stock continues to be manipulated on all trading platforms. What was the disposition of the SweetPea shares at the conclusion of the bankruptcy and who currently controls those shares?
2. If Origin is deciding the Beetaloo fate, why is Falcon continuing to operate & employ those in the Budapest office? And specifically, why employ Gabor Bada, Head of Technical operations? Has he ever benefited Falcon? If so, how? On the website I don't see any pay listed for Bada or Bruce Lawrence, Executive Secretary. Are they being compensated with stock options?
3. What can POQ tell us about the largest shareholders and their intentions? Are they strictly investors? Will they act as bankers for debt rather than further dilution of shares, if additional cash is needed?
4. What is Falcon's perception of NICOLAS MATHYS and ZUG? Is his group ready to back Falcon if needed?
5. Why is anyone from the original Bruner team still involved with Falcon? Is it due to Canadian requirements?
6. How are you conserving capital?
7. I'm concerned about the Russian involvement on the BOD. Both Conrad and Mayorets appear to have been involved with Gazprom. Was this a condition for Renova/Lamesa/Vekselsberg 's investment? Possibly, a Falcon 'large' investor history should be explained.
8. We appear to lack consistency with any real investment professionals. What does Cenkos bring that prior groups haven't?
As a "leading adviser for O&G companies on AIM", what is their plan to further Falcon's interests? How are they compensated? What happened to the RBC analyst who was so high on Falcon's opportunity? Or ANY analyst at this time?
9, John Carroll, our non-executive director, Falcon Australia is likely our most important advocate presently. What is his role within Falcon? Is he akin to a lobbyist? Does he negotiate on our behalf? If so, with whom? Government entities, Origin, ???
10. Aside from info learned on this board from individuals who speak with POQ, when might we expect to hear directly from Falcon about further progress?
Poods, you're correct. We've endured many mistakes. Many are typical of penny stocks, although some should have been avoided. Unlike you, I am NOT a proponent of reverse splits for a variety of reasons, especially in a company with little corporate experience and very little 'real' executive support. But that's an aside.
It appears to me that many knowledgeable folks on this chat board in the o&g business, who are focused on the drilling, and the potential buyers/distributors for the gas production. Since we have no control over the drilling & testing period, I have other concerns that could potentially bite us.
I doubt that many have read any of the SEDAR filings, where investors can usually find some empirical and useful info. Aren't others concerned with the high salaries relative to the work they do, the huge number of shares outstanding, the generous stock options awarded, the further dilution we might face, the board members and the advice (or lack thereof) provided by them, the turnover of financial advisors and promoters, etc???
As previously stated, I'm very concerned that the LARGE SELLER(S) has not been identified by POQ. Some days FOLGF in the U.S. trades less than 10,000 shares, while today more than 500,000 shares traded hands. Why would any group want to sell at this point, unless they had to sell. Is it Sweetpea? The Russians? Whomever they are they will continue to keep a lid on the stock price until reserves are proven.
I'll address some other concerns, when I have more time to post. As previously stated, we're just along for the ride. Hopefully, we'll eventually be rewarded for our patience.
I apologize for replying to another poster's comments, but I obviously don't know how to post with a new header.
My original comment was cut short. "Regardless of these and other concerns, Falcon shares have HUG".... should have read
HUGE upside, considering the Beetaloo potential. There are more concerns, but this is enough & all the time I have for now.
Newbie to this thread, but 40+ yr securities industry veteran and shareholder since FOLGF began trading. I understand the extreme frustration of the long term shareholders, who have endured the Bruner tenure, the high salaries and overly generous stock options, the Hungarian & SA failures, the Sweetpea bankruptcy, the constant delays that are always the fault of other entities and governments, moratoriums, rig location & drilling close to the wet season, anti-frackers, lack of corporate communication, etc. etc.. These are not uncommon in speculative, exploratory oil & gas companies. If it were not for the huge potential in Australia, I like many here, would have been gone long ago.
This site was recommended by POQ awhile ago, so I've read some of the commentary. I've read some very astute & detailed comments here. I might overlook some of Falcon's shortcomings, but I have other concerns that I haven't seen addressed.
POQ should know his largest shareholders, including their intentions re Falcon and how their involvement might affect regular shareholders: who is selling, and the # of shares to be sold. A good CEO & BOD should have lined up or at least introduced buyers at a slight premium, allowing the stock trade without additional impediment.
Who would want to sell shares, just prior to the best news ever reported?
Lamesa Holdings S.A./Renova Assets 157,083,634
BURLINGAME ASSET MANAGEMENT 125,231,739 13.46
SWEETPEA PETROLEUM 80,625,170 8.67
PERSISTENCY PRIVATE EQUITY / SWISS ENERGY PARTNERS 59,304,484 6.38
NICOLAS MATHYS 50,551,600 5.43
I appreciate having deep pockets involved in securities I own, but I'm also concerned about their history & involvement. Is it possible the large blocks of Falcon overhanging the markets are the result of increased U.S. sanctions on the richest oligarchs close to Putin? Renova (Victor Vekselberg), Gazprom and Lamesa have been reported to be among the Russians getting rid of U.S. assets.
I'm concerned about the large shareholders and their intentions. Considering the size of their holdings, the total number of shares held by everyone on this thread won't override any decision they make. Hopefully, they are all anticipating a huge return like all of us. We're just along for the ride!
- Per https://en.wikipedia.org/wiki/Gazprom
Gazprom is a large Russian company founded in 1989, which carries on the business of extraction, production, transport, and sale of natural gas. The company is majority owned by the Government of Russia, via the Federal Agency for State Property Management and Rosneftegaz. Gazprom is the world’s largest oil producer, with producing oil through the largest natural gas field in the world.
I originally thought Sweetpea was the seller overhanging Falcon, but recent info offers an alternative explanation. https://en.crimerussia.com/oligarchs/russian-oligarchs-sell-their-us-assets-fearing-new-sanctions/
Regardless of these and other concerns, Falcon shares have HUG