Falcon Oil & Gas Ltd.: Commencement of Dril...

Falcon Oil & Gas Ltd.
                                         ("Falcon" or the "Group")

                   Commencement of Drilling Operations in the Beetaloo Basin, Australia

29  May  2015 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) is delighted to announce that drilling
operations  have commenced on its initial three well fully funded drilling campaign in the Beetaloo  Basin,
in the Northern territory of Australia.

Highlights:
    *   Civil works on the first well, "Kalala S-1" are now under way with the spudding on target for the
        end of June 2015.
    *   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.
    *   The well is targeting the Middle Velkerri formation to assess hydrocarbon saturation and reservoir
        quality.
    *   Kalala S-1 is to be operated by Origin Resources Limited ("Origin") (35%) with partners  Sasol
        Petroleum Australia Limited ("Sasol") (35%) and Falcon (30%).

Kalala S-1 is the first of Falcon's fully carried, 2015 three well drilling and evaluation programme in the
Beetaloo  Basin, Northern Territory, Australia, operated by Origin. It is anticipated that the mobilisation
of  the rig to "Kalala S-1" well site will happen shortly with the spudding of this first exploration  well
on target for the end of June.

It  is  expected  that Kalala S-1 will be drilled to a total depth of approximately 2,800 meters  and  that
drilling  will take approximately 35 to 50 days. Kalala S-1 is located within exploration permit  98,  with
access from the existing Carpentaria Highway.

Falcon  is  fully  carried for all 2015 drilling and evaluation costs, retaining its 30%  interest  in  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:

"We  are  delighted to announce the commencement of drilling operations and the expected  spudding  of  the
first  of  our three well fully funded drilling campaign by the end of June 2015, in this highly attractive
basin.  We look forward to exploring the potential of the Beetaloo Basin in Australia with our partners and
updating the market with further details in due course".

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:
            o       The drilling of the first five wells or
            o       The drilling and testing of the next two horizontally fracture stimulated wells.

For further information, please contact:

CONTACT DETAILS:

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

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

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

CAMARCO
Billy Clegg                                              [phone]
Georgia Mann                                             [phone]

This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations.
Dr.  Bada obtained his geology degree at the Eötvös 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  our 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, the prospectivity of  the
Middle Velkerri shale play and the prospect of the exploration programme being brought to commerciality and
comments  made  with respect to the mobilisation and spudding of the 2015 programme. 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.

Falcon Oil & Gas Ltd.