Falcon Oil & Gas (LSE:FOG) — Q&A session

0:01 Good afternoon, and welcome to the FALCON OIL AND GAS LTD Q and A session relating to the resolution passed at the special meeting of the company today. The

0:22 Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Philip Ogwickley, CEO. Good afternoon, sir. Good afternoon, Paul, and, hello to everybody. Look. As we we find this investor meet forum a great way to kinda communicate ongoing activities of the company, be they corporate activities like today in terms of our special meeting or operations that we've often done in the past. Today, we're just gonna focus on the resolutions that were passed at a special meeting this morning here in Dublin. And we have a number of questions in, which I'll pass over to Paul to go through a few short questions. As I said, they are just on the the resolutions themselves. At a future date, when we have an update in operations that we'll release, we'll we'll come back on. We'll do a QA and and deal with all issues and questions around the ongoing operations. But for for the purpose of this meeting, we'll just stick to the special resolutions that were passed today. So just back to you, Paul, if you have the questions. Fantastic. Absolutely.

1:16 As Philip said, we received a a short number of questions, and thanks to all the investors for submitting those. The first one reads, why is FALCON considering a US listing? Yeah. Good question. One we won't take lightly, one we've considered as a board for the last six to twelve months. But, you know, when you look at the recent interest in the Beetaloo and where it's come from in the last twenty four months, you know, the arrival of Brian Sheffield, drilling contractor, H and P, oilfield services, Liberty Energy, Tamron's own IPO on the New York Stock Exchange. It's you know, it becomes very obvious that the best place to attract further capital support for FALCON's interest in the BLOO is probably in The US.

1:56 Hence, you know, your board, we met in the last few months. We took a decision, went out. We met a number of US banks that we don't thought would be interested in supporting the company's listing there. And we got a very positive response. And we're now working, you know, particularly with one US bank, that wants to support FALCON, and wants to get, you know, your company in front of as many, you know, interested US investors as possible. Fantastic. Thank you. I know you're trying to reach a price point for the market, but was there a smaller reverse split considered?

2:35 Yes. Absolutely. You know, the resolution that was passed earlier today, it authorized the company to do a a one for 250 share consolidation. But I wanna be clear, the only rationale for even considering a share consolidation in the first place is to satisfy a condition of getting listed on, for example, the New York AmEx Stock Exchange, where they have a minimum requirement of $3. Your board, you know, we wouldn't consider doing consolidation, you know, just for the sake of doing one. We're all very well aware, as I'm sure a lot of our shareholders are, of potential downside risk to doing a share consolidation, you know, particularly if you do one in in, you know, what I call in a vacuum, where there's nothing really going on. If you look at our current US Dollar equivalent share price of 6¢ to get to that $3 minimum, we'd have to do a minimum of a 50 for one consolidation.

3:23 Assuming we get good flow rates before we do any share consolidation, you know, you might move that consolidation to a 25 for one. But you don't want to you know, when we look at what what price we want, what consolidation we want, you don't wanna land at or near that minimum $3. You know, you want to do you wanna be in the 5 to $10 range? Do you wanna be in the 10 to $20 range? You know, for example, if we if we go for a $15 IPO price in in The US listing at today's price, that would be your your your all in 250, for one consolidation. But I think it's important to point out that the resolution passed today, what it's done is that it grants the company the authority to do a consolidation of up to 250. But in all likelihood, depending on the share price prior to, that would be more likely a lot lower than the two fifty.

4:12 And, again, we're not doing the consolidation unless all the conditions that we deem to or there to eliminate the downside risk are there. So, like, good flow rates, good reception in The US in terms of a

4:25 no deal roadshow we might do before results, a good support from a bank. Unless they're all there, we won't even attempt to share consolidation. So this gives us the authority to do it, but doesn't mean we, you know, we'll absolutely carry that. Thank you very much. What date will the reverse split happen? Yeah. Again, no date set. The authority given to us today gives us twelve months to execute. So anytime between now and twelve months. The timing will be aligned with a number of things that need to happen. And the most important of those is, you know, getting out with announcement of of these flow rates from the first two wells of the pilot program. You know, and then based on marketing of FALCON, as I said, pre and post these flow rates in The US with this US bank and see how that market responds.

5:10 So, you know, if you were to look at it now, we'd be looking at probably q two as being, you know, the ideal time for doing the share consolidation together with The US listing and everything else. So but, you know, as I said, we have twelve months. There's no date set, and it certainly won't be happening in 2024. Thank you. Can you please be very specific about what the consolidation will mean for holders of FALCON Australia shares and if there are any near term action needed from FALCON Australia shareholders before or during the consolidation, what this means, if anything, regarding to dilution

5:42 of shares? Yeah. As most people know, we hold our interest in in the beetleu via Falcon Australia, and the parent company owns 98% of that company. There's a a further 2%, which is held by mostly individual shareholders. So the question, obviously, was coming from one of those. This share consolidation has zero impact on Falcon Australia shareholders, and zero dilution for any Falcon Australia shareholders. So it's got no impact whatsoever. Great. If there, if there is any progress towards a US listing and when?

6:14 Yeah. Again, you know, what I've said already, we're making good progress. We've had some good meetings as the one bank in particular. Very keen. This bank is very knowledgeable of the the space that we're in, very knowledgeable of the, very knowledgeable of our partners in terms of Brian Sheffield, but also H and P and and Liberty Energy. So, you know, as I said, we're making good progress, but it's it's all gonna be linked to share consolidation, the listing, and the flow rates. So as I said, it all kind of points in terms of timing towards kinda q two next year. That's great. Thank you, Philip. If there are any other topics that you wish to address, please do so. And then can I just please ask you for a closing couple of comments? Just if there is anything further you wish to address, Philip, then please do so. No.

7:07 I just no. Just if anyone has any any questions, but, you know, if you can just keep those to the the resolution today. As I said, we come back in due course and and update everybody on on operations. Great. We'll see we've got no questions through. So perhaps on that note, Philip, we'll thank you very much indeed for updating investors today. Please ask investors not to close the sessions. Now be automatically redirected to provide your feedback nor that the team can better understand your views and expectations. This will only take a few moments to complete, and that is greatly valued by the company. On behalf of Philip and the management team of FALCON OIL and GAS LTD, we'd like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all.