FALCON OIL & GAS (V-FO) $1.68 -0.49
ULTRA PETROLEUM (US:UPL) $54.75 +1.74
Well, I guess we got the answer to that question, we
posed...Back on February 5th, we wrote about Falcon Oil
and Gas, “We wonder what comes first...a new management
team...a billion shares outstanding...or what the chart says
might be their next stock price, $1.50?”
Today Falcon hits a low of $1.44 as they announce “it
has retained BMO Capital Markets as its exclusive financial
advisor to help identify potential strategic partners. Falcon
will focus on companies which can add value to the Company’s
oil and gas project in Hungary by contributing to the
technical understanding of the assets, accelerating development…”
While Falcon President, Chairman and CEO, Marc
Bruner has to be credited with being a genius, having first
recognizing the potential for unconventional gas and putting
together some of the most intriguing land packages
around the world, managing and developing those assets
always demands a different set of skills.
While Bruner has to be credited with putting the land
package together for what became one of the success stories
of the last decade - Ultra Petroleum—which ultimately
became a 100-bagger, that company teetered at the abyss
until management under Michael Watford was brought in,
which cut a burgeoning staff dramatically. He made cuts
where he had to at a time when unconventional gas had a
whole bunch of technical and operational problems and
made the changes that had to be made so that Ultra would
thrive and become the success story it has become.
If Falcon can find some partners that could hasten development
of their project, or for that matter, bring in new
management that can get things done a lot quicker than
they have been doing to date, this could be quite good for
Falcon.
On the other hand, they now have over half a billion
shares outstanding and still don’t know what they’ve got.
That’s not a lot of leverage…
Tomorrow, they will host an investment conference
call...and that will be interesting.
First question...someone ask just how many shares are
outstanding—fully diluted?
We are short.
Ultra Petroleum
www.ultrapetroleum.com
Falcon Oil & Gas
www.falconoilandgas.com
David Pescod 780-408-1750 Debbie Lewis 780-408-1748 Page 2
CRUDE OIL: (August Contract) $68.97 +1.20
According to CNN reports out of Tehran, there is rioting
in the streets of Iran and line ups by hundred of thousands
of car owners for miles as the government has
decided to institute a policy to ration fuel allotments.
Yes, you’ve got that right...Iran, the huge producer of
oil, the prominent member of OPEC and a country that
has the technology to enrich uranium...can’t refine oil.
While Iran is a big exporter of oil, it’s very short refinery
capacity, so it has to export oil and get someone else to
come up with the refined products.
The riots in the streets were also caused by a huge
increase in gas prices of more than 20%...to 11 cents per
litre (or 41.7 cents a gallon). Don’t you feel sorry for |
