Falcon Oil & Gas Ltd. Updates on Drilling P...

DENVER, CO--(Marketwire - January 14, 2009) - Falcon Oil & Gas Ltd.
(TSX-V: FO) ("Falcon") today announced an update of the operations of
the "Initial Work Program" under its April 10, 2008 Production and
Development Agreement, as amended, with Exxon Mobil Corporation
affiliate Production Ventures East Hungary Kft ("ExxonMobil") and MOL
Hungarian Oil and Gas Plc.

Falcon is pleased to announce that ExxonMobil, as operator, began
drilling the Földeák 1 well on January 14th, 2009 with the purpose of
testing the hydrocarbon potential of the Szolnok formation.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd. is a British Columbia corporation in the
business of oil and gas exploration and production. It has operations
in Hungary through its wholly owned subsidiary TXM Oil and Gas
Exploration, LLC, in Romania through its wholly owned subsidiary JVX
Energy Corporation, in Colorado through its wholly owned subsidiary
Falcon Oil & Gas USA, Inc., and in Australia through its wholly owned
subsidiary Falcon Oil & Gas Australia Pty Ltd. Further information
about Falcon is available at www.falconoilandgas.com.

In the interests of providing Company shareholders and potential
investors with information regarding the Company, including the
Company's assessment of its and its subsidiaries' future plans and
operations, certain statements included in this press release may
constitute forward-looking information or forward-looking statements
(collectively, "forward-looking statements"). All statements
contained herein that are not clearly historical in nature are
forward-looking, and the words "anticipate," "believe," "expect,"
"estimate" and similar expressions are generally intended to identify
forward-looking statements. Similarly, forward-looking statements in
this press release include, but are not limited to anticipated
developments of the Company's drilling project in Hungary and the
timing thereof, the Company's drilling project in Romania and the
timing thereof, capital investment levels and the allocation thereof,
pipeline capacity, government royalty rates, reserve and resources
estimates, the level of expenditures for compliance with
environmental regulations, site restoration costs including
abandonment and reclamation costs, exploration plans, acquisition and
disposition plans including farmout plans, net cash flows, geographic
expansion and plans for seismic surveys. In addition, please note
that statements relating to "reserves" or "resources" are deemed to
be forward-looking statements, as they involve the implied
assessment, based on certain estimates and assumptions, that the
reserves and resources described can be profitably produced in the
future. Such statements represent the Company's internal projections,
estimates or beliefs concerning, among other things, an outlook on
the estimated amounts and timing of capital expenditures, anticipated
future debt levels and incentive fees or revenues or other
expectations, beliefs, plans, objectives, assumptions, intentions or
statements about future events or performance. These statements are
only predictions. Actual events or results may differ materially.
Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee future
results, levels of activity, performance or achievement since such
expectations are inherently subject to significant business,
economic, competitive, political and social uncertainties and
contingencies. Many factors could cause the Company's actual results
to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company and
the foregoing list of important factors is not exhaustive. These
forward-looking statements made as of the date hereof disclaim any
intent or obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
results or otherwise. Company shareholders and potential investors
should carefully consider the information contained in the Company's
filings with Canadian securities administrators at www.sedar.com
before making investment decisions with regard to the Company.

The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.


Contacts:

Investor Relations
Falcon Oil & Gas Ltd:

North America:
Brad Long
Toll Free 888 541 3624 (FOAG)
Direct [phone]
[e-mail]

Europe:
Alexander Hubbard-Ford
Phone + 44 (0) 20 79351543
Mobile + 44 (0) 7984481541
[e-mail]

Falcon Oil & Gas Ltd.
Marc Bruner
CEO
1875 Lawrence Street, Suite 1400
Denver, Colorado 80202 USA
Phone [phone]
Fax [phone]


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