Falcon Natural Gas gets maturity extension on $8 million in defaulted debt

By Sheri Kasprzak

New York, April 4 - Falcon Natural Gas, Inc. said it received an extension on the maturity of $8 million in convertible debentures held by Cornell Capital partners, LP.

The company has defaulted on $1 million of debentures due April 19, 2005 and $7 million due Oct. 17.

The maturity was extended to Dec. 31, 2007 and the company will have no interest or principal payments until April 1, 2007.

Falcon owes Cornell $88,767 in interest on the April debentures and $151,509 for the October debentures.

Cornell received warrants for 23 million shares, exercisable at prices ranging from $0.30 to $0.80 for five years. A total of 3 million shares are exercisable at $0.30 each, 3 million are exercisable at $0.35 each, 3 million at $0.40 each, 3 million at $0.50 each, 3 million at $0.60 each, 3 million at $0.70 each and 5 million at $0.80 each.

Based in Houston, Falcon is a natural gas exploration company.

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