Falcon Natural Gas Corp. (FNGC) shares gained a penny Thursday to end the day at $1.25 after a geological consulting firm concluded that its gas prospect in South Texas “will most likely be the next giant field discovered in the United States.” However, the company has not even done any exploration on field and provided few details to back up that statement.

Consulting firm Don W. Frazier Inc. said the prospect has “potential reserves of approximately 200 Bcf…with a current market value of $1.25 billion based on current natural gas prices before consideration of exploration and development expenses.” The report apparently compared the prospect to the Bob West field where ultimate recoverable reserves are estimated to reach 1 Tcf.

The company, however, would not return calls regarding any proved reserves in the field or the expected peak gas production profile. It did say that initial production could be about 10 MMcf/d. Falcon hopes to raise the capital to begin an exploration program later this year.

“The East Bob West Prospect in Starr Co., TX, should be a major gas discovery,” Frazier said. “The structural attitude of the sands is ideal for entrapment of major gas reserves. Major gas fields lie just to the west (Bob West Field) and just to the north (Lopeno) and along the same trapping fault.”

Falcon recently acquired a 100% working interest in the properties and has signed agreements relating to another 800 acres. It said it is in the process of securing an additional 1,900 acres in the region.

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