Falcon Oil & Gas Ltd.: Australia Drilling H...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG
ISE SYMBOL:  FAC

July 15, 2015

Falcon Oil & Gas Ltd.: Australia Drilling Has Started: Spudding of Kalala S-1

DUBLIN, IRELAND--(Marketwired - July 15, 2015) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is
pleased to announce the spudding of the Kalala S-1 well in the Beetaloo Basin, Australia. Kalala S-1 is the
first of Falcon's fully funded and uncapped, 2015 three well drilling and evaluation programme in the Beetaloo
Basin. The 2015 three well programme is the commencement of a nine well exploration and appraisal programme
planned from 2015 to 2018.

Highlights:

--  Kalala S-1 is the first well of the initial 2015 three well fully funded
    drilling programme, targeting the Middle Velkerri formation to assess
    hydrocarbon saturation and reservoir quality.
--  Kalala S-1 is located within exploration permit 98, with access from the
    existing Carpentaria Highway, and will be drilled to a total depth of
    approximately 2,800 meters.
--  Rig 185, an ATS 400 has been commissioned from Saxon Energy Services
    Australia Pty. Ltd, a Schlumberger company.
--  It is estimated that drilling will take approximately 35 to 50 days.
--  Kalala S-1 is to be operated by Origin Resources Limited ("Origin")
    (35%) with partners Sasol Petroleum Australia Limited ("Sasol") (35%)
    and Falcon (30%).

Falcon is fully carried for all 2015 drilling and evaluation costs, retaining its 30% interest in 4.6 million
gross acres of the Beetaloo Basin with co-venture partners Origin and Sasol.

The principal objectives of the 2015 three well drilling programme are to:

--  penetrate the Middle Velkerri formation to assess hydrocarbon saturation
    and reservoir quality;
--  evaluate oil versus gas maturity and determine the most prospective
    areas and depth window;
--  provide further information on the aerial distribution of the target
    Middle Velkerri formation; and
--  collect data points for subsequent vertical/horizontal drilling,
    completion and production testing.

Formation evaluation and reservoir characterisation will be carried out from these initial three wells through
petrophysical interpretation, core analysis, geomechanical studies and stimulation design.

Philip O'Quigley, CEO of Falcon commented:

"The spudding of Kalala S-1 well is an important milestone for the Company and marks the start of our initial
three well fully funded 2015 drilling campaign. The initial drilling programme is designed to test the
hydrocarbon saturation and reservoir quality of the basin and determine the prospectivity of this highly
attractive basin. We will update the market as soon as results become available."

Background

On 2 May 2014, Falcon announced it had entered into a Farm-Out Agreement and Joint Operating Agreement with
Origin and Sasol (collectively referred to herein as the "Farminees") with each farming into 35% of the
Falcon's exploration permits in the Beetaloo Basin, Australia through its 98% subsidiary, Falcon Oil & Gas
Australia Ltd. ("Falcon Australia"). The Farminees will carry the Group in a nine well exploration and
appraisal programme from 2015 to 2018.

--  Farminees will pay for the full cost of completing the first five wells
    estimated at A$64 million, and will fund any cost overruns, with work
    expected to be completed between 2015 and 2016.
--  Farminees to pay the full cost of the following two horizontally
    fracture stimulated wells, 90 day production tests and micro seismic
    data collection with a capped expenditure of A$53 million, any cost
    overrun funded by each party in proportion to their working interest.
    This work programme is expected to be undertaken in 2017.
--  Farminees to pay the full cost of the final two horizontally fracture
    stimulated wells and 90 day production tests capped at A$48 million, any
    cost overrun funded by each party in proportion to their working
    interest. This work programme is expected to be undertaken in 2018.
--  Farminees may reduce or surrender their interests back to Falcon
    Australia only after:
    --  The drilling of the first five wells or
    --  The drilling and testing of the next two horizontally fracture
        stimulated wells.

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr.
Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary and his PhD at the Vrije
Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and
development of conventional and unconventional oil and gas assets, with the current portfolio focused in
Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and
headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com.

About Origin Energy

Origin Energy (ASX:ORG) is the leading Australian integrated energy company focused on gas and oil exploration
and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the Company has
approximately 6,900 employees and is a leading producer of gas in eastern Australia. Origin is Australia's
largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has one of
the country's largest and most flexible generation portfolios with approximately 6,010 MW of capacity, through
either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide
flexibility, stability and significant opportunities for growth across the energy industry. Through Australia
Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of
Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.

In New Zealand, Origin is the major shareholder in Contact Energy, a leading integrated energy company,
operating geothermal, thermal and hydro generation facilities totalling 2,359 MW and servicing approximately
562,000 electricity, gas and LPG customers across both the North and South islands. Origin also operates
several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage
in the country.

Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy
retailer in Australia and has significant investments in renewable energy technologies. For more information go
to www.originenergy.com.au.

About Sasol

Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of
more than 33,000 people working in 37 countries. Sasol develop and commercialise technologies, and build and
operate world-scale facilities to produce a range of high-value product streams, including liquid fuels,
chemicals and low-carbon electricity.

Sasol, through its subsidiary Sasol Canada, owns a 50% working interest in two natural gas fields in British
Columbia. Sasol entered Canada in early 2011 through a $2 billion acquisition for a 50% working interest in
Talisman Energy's natural gas assets in one of the most prolific shale plays in North America: the Montney
shale basin located in northeast British Columbia. Progress Energy acquired the remaining Talisman interest in
2014. The Sasol/Progress partnership holds 108,000 total net acres of land in the Montney basin.

For more information go to www.sasol.com.

Glossary of terms
CSG              Coal seam gas
LNG              Liquefied natural gas
LPG              Liquefied petroleum gas
A$               Australian dollars
MW               Megawatt

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information. This information is based
on current expectations that are subject to significant risks and uncertainties that are difficult to predict.
Such information may include, but is not limited to comments made with respect to the type, number and
objectives of the wells to be drilled in the Beetaloo basin Australia, expected contributions of the partners,
the prospectivity of the Middle Velkerri shale play and the prospect of the exploration programme being brought
to commerciality. Actual results might differ materially from results suggested in any forward-looking
statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why
actual results could differ from those reflected in the forward looking-statements unless and until required by
securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained
in Falcon's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil & Gas Ltd.
[phone]

OR

Falcon Oil & Gas Ltd.
Philip O'Quigley
CEO
[phone]

OR

Falcon Oil & Gas Ltd.
Michael Gallagher
CFO
[phone]

OR

Falcon Oil & Gas Ltd.
John Craven
Non-Executive Chairman
[phone]

OR

Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell
[phone]

OR

GMP Securities Europe LLP (Joint Broker)
Rob Collins / Emily Morris
[phone]

OR

CAMARCO
Billy Clegg
[phone]

OR

CAMARCO
Georgia Mann
[phone]

Falcon Oil & Gas Ltd.