http://www.proactiveinvestors.co.uk/columns/sp-angel/24874/sp-angel-morning-oil-and-gas-falcon-oil-and-gas-sound-energy-sterling-energytlou-energy

Headlines
• Falcon Oil and Gas (LON:FOG – 9p/C$0.16) – Option Value

In Brief
• Falcon Oil and Gas (LON:FOG – 9p/C$0.16) – Option Value: Today's announcement succinctly summarises the Falcon opportunity, in that it is a free option on the development of the Beetaloo shale. The Company is in a good position because if it fails to prove prospective for shale, it hasn't cost it, or its owners, anything. If, however, it is prospective, there is the likelihood that the Company will be able to valorise its position before any lengthy delay, whether by outright acquisition of the Company, or disposal of the interest in the Beetaloo assets. This is exactly what happened with Cove, the assets became too attractive to a larger player that has deeper pockets and a more strategic approach to asset development. As a consequence, we believe that Falcon is effectively a free option.