Your stock momentum report
| From: | Gavin | Date: | Sun, 28 Nov 2004 22:59:43 +0000 |
| Subject: | Your stock momentum report | ||
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Falcon Natural Gas Corp (OTCBB: FNGC)
Current Price: 1.18
OS Shares: 60 Million
Avg Vol: 331,400
Sector: Energy
Major Recent News! (Press Release Source: Falcon Natural Gas Corp.) Major Recent News!
Falcon Natural Gas Corp. Secures 11 Million Financing With Cornell Capital Partners LP.
Houston Business Wire. Nov. 22, 2004. Falcon Natural Gas Corp. (OTCBB: FNGC), announced today that
it has secured a total of 11,000,000 in equity financing with Cornell Capital Partners LP.
Falcon will receive 1,000,000 up front. The company will use the funds to re-enter its Lower DB3
prospect, which is classified as a PUD and has 20 BCF of proven-undeveloped gas reserves. The
prospect is located at the Avoca Minerals property in Southern Louisiana, one of the richest natural
gas producing areas in North America.
The remaining 10,000,000 was secured under a standby equity agreement. These funds can be drawn at
the company's discretion based on funding requirements, subject to an effective registration
with the SEC.
"We are very pleased to have Cornell Capital Partners join our current investors," said
Fred B. Zaziski, Chief Executive Officer of Falcon Natural Gas Corp. "This financing
significantly strengthens Falcon's liquidity and will allow us to move at a faster pace with
our exploration program."
"Natural gas industry represents an enormous investment opportu nity," said Hamid
Fashandi, Senior Vice President of Cornell Capital Partners LP. "We are excited about
Falcon's potential and look forward to building a long-term relationship with the
company."
About Falcon Natural Gas Corp (OTCBB: FNGC); Properties and Prospects.
Falcon Natural Gas Corp. is a Houston, Texas based Natural Gas exploration company. The company is
focused on the acquisition and exploration of commercial prospects in onshore areas of the United
States of America. These prospects include:
TEXAS: The East Bob West Prospect is strategically located in Southern Texas, one of the leading gas
producing areas in North America, and consists of over 4,000 acres of oil and gas leases adjacent to
large proven reserves of natural gas. The prospect lies east of the giant Bob West Field, which has
expected reserves of around 1 trillion cubic feet (TCF) of natural gas. Additionally, Falcon's
prospect is located approximately six miles south and southwest of the Lopeno Field, which is
expected to produce over 260 billion cubic feet (BCF) of natural gas. The East Bob West Prospect is
estimated to contain a maximum of 528 BCF of natural gas.
LOUISIANA: Falcon also has three significant prospects in St. Mary Parish, Louisiana. The acreage is
located in the Avoca Minerals Area, one of the richest natural gas producing areas in North America.
The three prospects identified on good quality 3D seismic represent a potential of up to 570 billion
cubic feet (BCF) total gas.
The 17,500 ft DB3 prospect is classified as a PUD and has 20 BCF of proven-undeveloped gas reserves.
The 17,000 ft Criss A prospect has potential for up to 50 BCF of gas and is located south of DB3.
The volumetrics of the third prospect, Marg 3, show this prospect to have a maximum potential of 500
BCF of gas.
If economic natural gas reserves are found and given today's market prices, these prospects
have a potential estimated market value between 75 million and 698 million.
Summing it all up for the savvy investor; What is in the future for Falcon Natural Gas Corp (OTCBB:
FNGC)?
Natural gas prices have sky rocketed in the past year due to political turmoil in the middle east
and the growing number of new vehicles in the world. Gas prices are expected to continue on the rise
in the coming months. Natural gas prices in last few months alone have risen up over 50%.
Natural gas is the second most important source of fuel in the US, with industrial users being the
single most important domestic buyers. In response to the increasing need to be independent of
imported energy, natural gas has become the fastest growing major energy source domestically and
internationally. Between 1992-2002, global gas demand grew at 2.2% and demand of natural gas is
expected to continue to grow annually at 1.8% in the US, 6.1% in Mexico and 2.8% globally until
2025. Based on this rapidly growing demand, natural gas is trading at more than double its
historical average. Analysts expect sustained robust prices to prevail into the future.
In response to the rapidly growing need for exploration and development of domestic oil and gas
reserves, a select group of independent American Oil and Gas companies have combined smart
management with a streamlined, efficient business model. This has led to stunning success for these
small cap companies. Could FNGC be one of the next breakout oil and gas stocks to make major gains?
We have given you an introduction to FNGC. Now its time for you to do your due diligence on FNGC and
decide if FNGC has the potential to be a major success in your portfolio.
Good Luck and as Always, Successful Investing!
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certainty as to its accuracy or completeness. As with many microcap stocks, today's company has
additional risk factors worth noting. Those factors may include an accumulated deficit since its
inception, a negative net worth, reliance on loans from officers, directors and a majority
shareholder to pay expenses, nominal cash and the need to raise capital. The company may have a
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Sun, 28 Nov 2004 17:59:43 -0500