Falcon Oil & Gas Ltd.-Hungary Drilling Upda...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

July 15, 2014

Falcon Oil & Gas Ltd.-Hungary Drilling Update-Contract With NIS Extended

DUBLIN, IRELAND--(Marketwired - July 15, 2014) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or 
the "Company") is pleased to announce that initial drilling operations on the Besa-D-1 well have reached total depth 
("TD") of 3,000 metres having encountered gas shows.

Besa-D-1 is the second of a planned three well programme to evaluate the gas potential of the Algyo Formation in the 
Mako Trough License. The well has now been cased to TD and is suspended pending further technical evaluation in order to 
determine an appropriate testing programme later this year. No operational problems occurred during drilling.

In January 2013, Falcon agreed a three-well drilling programme with Naftna industrija Srbije jsc ("NIS") to target the 
Algyo Play, whereby NIS made a cash payment of US$1.5 million to Falcon in February 2013, and agreed to drill three 
wells by July 2014 at their cost. The July 2014 date for completion of drilling and testing of the NIS three well 
programme has been extended to 31 December 2014. This extension has been granted to allow NIS to:

--  Complete the testing of Besa-D-1; 
--  Evaluate the hydrocarbon potential of the entire Mako Trough including
    the Deep Mako play; and 
--  Fulfill the third well obligation of the NIS three-well drilling
    programme. 

Philip O'Quigley, CEO of Falcon commented:

"We are pleased to confirm that we have drilled, without any operational difficulties, the second of the three well 
drilling programme, with our partner NIS. The technical evaluation of the well results and the testing programme will 
take place during the second half of 2014.

In working together, Falcon and NIS have agreed to extend the completion date for the three well programme from July 
2014 to 31 December 2014 in order to identify the appropriate location and geological target for the drilling of the 
third obligation well within our prospective acreage in the Mako Trough." 

This announcement has been reviewed by Dr. Gabor Bada, Falcon'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, EAGE and SPE. 

About Falcon Oil & Gas Ltd.

Falcon 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 spread between Australia, South Africa and Hungary. Falcon 
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 Naftna Industrija Srbije JSC (NIS) 

NIS is one of the largest, vertically integrated oil and gas companies in Southeast Europe, focusing on exploration and 
production of hydrocarbons, refining of crude oil and sales of a broad range of petroleum products.

For further information on NIS please visit www.nis.rs.

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. 

Gas shows: there is no certainty that any gas shows will eventually lead to discovery. Even if discovery is made, there 
is no certainty that it will be commercially viable to produce any portion of the resource.

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. 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.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil & Gas Ltd. [phone]
Philip O'Quigley, CEO [phone]
Michael Gallagher, CFO [phone]
John Craven, Non-Executive Chairman [phone]

OR

CAMARCO
Billy Clegg [phone]
Georgia Mann [phone]

OR

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

OR

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

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Falcon Oil & Gas Ltd.