Falcon Oil & Gas Ltd.: Operational Update a...

FOR:  FALCON OIL & GAS LTD.

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

March 9, 2016

Falcon Oil & Gas Ltd.: Operational Update and Confirmation of 2016 Beetaloo Drilling Programme

DUBLIN, IRELAND--(Marketwired - March 9, 2016) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is pleased 
to provide the following operational update for its operations in Australia, South Africa and Hungary.

Operational highlights

--  Preparations for 2016 Beetaloo Basin, Australia, drilling programme at
    an advanced stage. 
--  Drilling locations being finalised for the two new vertical wells
    following technical evaluation undertaken by Origin, Sasol and Falcon. 
--  Well locations to penetrate condensate rich gas mature through to dry
    gas mature sections of the Middle Velkerri shale. 
--  Drilling expected to start Q2, 2016. 
--  Rig 185 remains "warm stacked" in the Beetaloo basin. 
--  Tendering and contracting for hydraulic stimulation and key well
    services ongoing.

Financial highlights

--  US$3.7 million cash settlement agreed with NIS - received in December
    2015. 
--  US$12.7 million (unaudited) in cash and cash on deposit at 31 December
    2015.

Australia - 2016 drilling & testing preparations underway in the Beetaloo Basin

Preparations are underway for the Group's 2016 Beetaloo drilling and testing programme, comprising: 

--  civil construction, the remobilisation of Rig 185 and the drilling of
    Beetaloo W-1, a vertical well in exploration permit ("EP") 117
    approximately 85km south of the wells drilled in 2015; 

--  the drilling of a second vertical well, the location of which is being
    finalised and the hydraulic stimulation of either this well or the
    Beetaloo W-1 well; and 

--  the re-entry and hydraulic stimulation of Amungee NW-1H in EP98 - This
    well was drilled in November 2015 to a total measured depth of 3,808
    metres, including 1,100 metres horizontal section in the "B Shale"
    interval of the Middle Velkerri Formation, 100 metres more than
    originally planned. 

The principal objectives of the 2016 drilling programme are to:

--  test gas productivity of the Middle Velkerri shale by means of multi
    stage hydraulic stimulation; 
--  further determine the areal extent of the Middle Velkerri shale; 
--  determine the levels of gas saturation in the southern section of the
    basin; and 
--  explore the shallower, oil prone sections of the Middle Velkerri shale.

South Africa - processing of the exploration licence by the Petroleum Agency of South Africa ("PASA") continues to 
progress 

The PASA recently confirmed that it expects to finalise a recommendation to the Minister of Mineral Resources on 
Falcon's application for a shale gas exploration licence in South Africa's Karoo Basin, by May 2016. The Company 
expects that the Minister of Mineral Resources will issue Falcon with a licence to explore for shale gas in 2016. 

Background 

Falcon was granted a Technical Cooperation Permit in 2009 covering 7.5 million (30,327 km2) acres in the southern part 
of the Karoo Basin. The Company has a cooperation agreement (as announced on 12 December 2012) with Chevron Business 
Development South Africa Limited ("Chevron"), which enables the Group to work with Chevron for a period of five years 
in jointly obtaining exploration licences.

Hungary - review of operations 

Falcon continues to review its operation and future plans in Hungary, evaluating all options available to the Group to 
deliver shareholder value. The Group maintains its 100% interest in the Mako Trough. 

Broker update 

Following the closure of the London office of GMP Securities Europe LLP, engagement with GMP Securities Europe LLP, 
Falcon's joint broker has now ended.

Philip O'Quigley, CEO of Falcon commented

"We are delighted to report that preparations for the 2016 Beetaloo drilling and testing programme are underway. Our 
shareholders can look forward to another exciting year of exploration activity which has the potential to transform 
the value of the company. Falcon remains fully carried throughout by our partners Origin and Sasol."

"Also, we welcome the recent confirmation by the PASA and are optimistic on securing a shale gas exploration licence 
in South Africa's Karoo Basin in 2016."

Background - Australia 

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 Falcon 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.

Stacking a Rig 

Stacking a Rig means leaving a rig idle but operational. A ready or warm stacked rig typically retains most of its 
crew and can deploy quickly if an operator requires its services. In a ready stacked state, normal maintenance 
operations similar to those performed when the rig is active are continued by the crew so that the rig remains work 
ready. Thus, a rig is kept in a ready stacked state when its owner anticipates that the rig will be able to return to 
work shortly - either due to having a commitment in hand or the owner's perception that work will be secured 
relatively quickly. 

Background - Oilfield Services Contract - Hungary 

In January 2013, Falcon and NIS agreed to complete a three-well drilling programme (the "Agreement") targeting the 
relatively shallow Algyo Play, by July 2014. Under the terms of the Agreement, NIS made a cash payment of US$1.5 
million and agreed to carry Falcon for 100% of all costs associated with the drilling and testing programme. The July 
2014 deadline for completion of drilling and testing of the three-well programme was subsequently extended by Falcon 
to 31 December 2014 to enable NIS to fulfil its three well obligation. As of 31 December 2014, NIS had only drilled 
and tested two 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 with market leading positions in energy 
retailing (approximately 4.3 million customers), power generation (approximately 6,000 MW of capacity owned and 
contracted) and natural gas production (1,093 PJ of 2P reserves and annual production of 82 PJe). To match its 
leadership in the supply of green energy, Origin also aspires to be the number one renewables company in Australia. 

Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing 
Australia's biggest CSG to LNG project based on the country's largest 2P CSG reserves base.

www.originenergy.com.au

About Sasol 

Sasol is an international integrated chemicals and energy company that leverages the talent and expertise of about 
31,000 people working in 37 countries. Sasol develops 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 Exploration and Production International ("E&PI") develops and manages the 
group's upstream interests in oil and gas exploration and production in Mozambique, South Africa, Australia, Canada 
and Gabon. It produces natural gas and condensate from Mozambique's Pande and Temane fields, shale gas from their 
share in the Farrell Creek and Cypress A assets in Canada, and oil in Gabon through their share in the offshore Etame 
Marin Permit (EMP). E&PI sells Mozambican gas under long-term contracts to Sasol Gas and external customers, 
condensate on short term contracts, while selling Canadian gas into the market at spot prices. Oil is sold to 
customers under annual contracts. For more information go to www.sasol.com. 

Glossary of terms                                                           
A$         Australian dollars                                               
CSG        Coal seam gas                                                    
JV         Joint Venture                                                    
LNG        Liquefied natural gas                                            
LPG        Liquefied petroleum gas                                          
MW         Megawatt                                                         
TD         Total Depth                                                      
Km         Kilometers                                                       

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, the prospect of the exploration programme being brought to commerciality and the awarding 
of an exploration licence in South Africa. 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

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

OR

CAMARCO
Billy Clegg
[phone]

OR

CAMARCO
Georgia Mann
[phone]

Falcon Oil & Gas Ltd.