Bought Falcon Oil and Gas

I had bought a half position in Falcon last year. When the Stock went down to just over $2.00, early in Febuary I bought more. This is something I have done a number of times. If a stock I like goes down considerably for a reason that does not change its long term outlook, I often buy more. The stock has risen from $2.17 to over three dollars. I am now showing a profit on my whole position, even though my original purchase was at an even higher price.

Falcon is developing a very large gas find in Hungary. It was first drilled in the seventies, but had to be abandoned because the technology available at that time could not handle the high pressure and depth of the wells. The improvement in technology over the last thirty years makes it now possible to develop this gas pool.However this is a high risk investment. The wells are among the deepest in the world and very expensive, thus each well has to be very productive to be profitable. the company also needs fairly high gas prices and has yet to get a production licence. On the other hand , if everything works out the rewards are huge, the reserves are estimated to be as much as all the proven reserves in western Canada combined.