There were some good updates at the AGM, with the majority of information that was covered by the new CEO, Philip O'Quigley, being from the latest Presentations that are on the Falcon website.

The key points that I got from the meeting were:

1. All projects will be moving forward entirely on a JV basis with very little capital requirements from Falcon - until such a time as production decisions are made;

2. The deal with NIS for exploring for the less deep gas in the Mako trough is just waiting for a tax ruling from Hungary - to the effect that the tax rates won't change with NIS as the operator versus Falcon's existing tax ruling. This ruling should come sometime in October and is expected to be positive, which will allow NIS to move forward with drilling starting hopefully in the first quarter of 2013;

3. There have been a few recent enquiries about developing the Mako deep gas, with Mr. O'Quigley's thoughts that any new JV in that direction would include a possible fracking of the Mako 7 and Mako 4 wells, which have never been properly tested. There has been no major effort put forth in finding a new JV partner for that deep gas project as yet, but a more concentrated effort on that front is expected next year once all the data and core samples that are in Denver now - have been moved to Hungary. Hungary will become the new main Technical Center office for Falcon;

4. Hess is moving forward on their seismic work and is fully expected to be complete before the beginning of November and before the rainy season cuts off any further work. Hess has two seismic crews working hard and is covering up to 35 kilometers a day. Hess will then have until next June to assess the seismic results and determine a 5 well drilling program - if they decide to go forward?? If they complete a 5 well drilling program, then a sixth well is called for - at Hess's sole expense - to somewhat offset the extension of time they were given;

5. Philip O'Quigley, said that he expects Falcon to receive an exploration permit for the Karoo sometime in the fourth quarter of this year, since Falcon's application was in before the moratorium. Even though the government in S.A. will not be authorizing any fracking until an Oversite Committee has been put in place - with strict environmental guidelines, the CEO expects that Falcon will have allot of JV interest as soon as the exploration permit is issued! The recent news about the moratorium being lifted has generated a great deal of publicity and interest from a number of directions. Any development of the Karoo will require a JV partner to be in place - as the future plans for fracking in the Karoo will require a great deal of input from the JV partner - as it will be the JV Partner's expertise in fracking and their overall experience in deep drilling/fracking that the Oversite Committee will be relying upon. The CEO said that they will be looking for a JV partner with both the skill sets required along with hopefully a strong connection to S.A.

Philip O'Quigley came across as a very down to earth, capable and positive new head of Falcon and seems to have the right focus for getting the best growth with the least dilution. The representative from Burlingame was also at the meeting and said a few words along the same lines. Burlingame's continued 18% equity position seems to be strong and is a very good endorsement for holding going forward until further developments.

Hope this helps.