cel - valuation, page-3

Choratio ,

Falcon Oil and Gas's policy for farmouts is that they are fully carried for multiple wells .

They achieved this in Hungary and Australia .

Their investment presentation even shows on a project plan that they expect to be fully carried for the Karoo .

Falcon's acreage is good but Challengers is in the deepest part of the basin with extremely thick sediments and proven over pressuring and high initial flow rates and might be expected to have superior economics .

If Falcon manage another fully carried $200m farmout like they managed in Australia , then Challenger ought to be able to achieve one as well .