Falcon Oil & Gas Ltd.: Technical & Oper...

FOR:  FALCON OIL & GAS LTD.

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

April 28, 2016

Falcon Oil & Gas Ltd.: Technical & Operational Update - Beetaloo Drilling Programme

DUBLIN, IRELAND--(Marketwired - April 28, 2016) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is 
pleased to provide the following technical and operational update for its operations in the Beetaloo Basin, 
Australia.

2015 Drilling Programme - Technical Results 

The results from the in-depth shale evaluation program and petrophysical analysis of the three wells drilled in 
2015 confirm the following:

--  The Middle Velkerri and Kyalla shales offer stacked play fairways with
    continuity over a large proportion of the Beetaloo Basin and in various
    maturity windows (dry gas to liquid). 
--  Three pervasive, organic rich shale intervals were identified and
    characterised within the Middle Velkerri formation with excellent
    reservoir and completion quality. The identified "B" and "C" shales have
    thickness in excess of 40 meters each. 
--  Amungee NW-1H, the first horizontal well in the programme landed in the
    Middle Velkerri "B" shale encountering excellent gas shows and
    represents a highly prospective candidate for multi-stage hydraulic
    fracture stimulation. 
--  Core analysis confirmed that the Middle Velkerri shale is organic rich,
    with average Total Organic Content ("TOC") of 3%-4% and is gas
    saturated. 
--  Diagnostic Fracture Injection Test ("DFIT") data revealed that the
    Middle Velkerri shale is 20% -25% overpressured, which is encouraging
    from both a volumetrics and reservoir productivity perspective. 
--  Favourable geomechanics indicates good frackabability within the Middle
    Velkerri shale. 
--  Estimated gas in-place density ranges within the Middle Velkerri shales
    are comparable to successful North American shale plays.

2016 Drilling and Testing Programme - Objectives 

The objectives of the 2016 Beetaloo drilling and testing programme comprise:

--  Testing gas productivity of the Middle Velkerri shale from the
    horizontal Amungee NW-1H well by means of a multi-stage hydraulic
    fracture stimulation programme. 
--  Proving the areal extent of the Middle Velkerri shale gas play towards
    the southern part of the Beetaloo Basin, through the drilling and
    testing of the vertical Beetaloo W-1 well, which is to be located
    approximately 85km south of the Kalala S-1 and Amungee NW-1H wells; and
    some 35km south of the Shenandoah S-1 well. 
--  Testing of the shallower, condensate rich gas mature sections of the
    Middle Velkerri shale on the northern basin flank through drilling the
    second vertical well in 2016, located approximately 35km north of the
    Kalala S-1 and Amungee NW-1H wells within exploration permit ("EP") 98. 
--  Characterization of the Kyalla shale as a secondary target could provide
    upside and enhanced liquids potential.

2016 Drilling and Testing Programme - Operational Schedule 

Preparations for the joint venture's 2016 drilling, testing and hydraulic stimulation programme are progressing 
and on schedule:

--  Rig 185, commissioned from Saxon Energy Services Australia Pty. Ltd, has
    remained "warm stacked" at the Amungee NW-1H wellsite since November
    2015 in order to commence operations as soon as weather conditions
    permit. Recomissioning of Rig 185 is expected to commence in mid-May
    2016. 
--  Re-entering the horizontal Amungee NW-1H well is scheduled for mid-June
    2016, followed by a multi-stage fracture stimulation programme to test
    the Middle Velkerri "B" shale reservoir. 
--  Civil works at the Beetaloo W-1 vertical well are expected to commence
    mid-May 2016 with spudding expected Quarter 3, 2016. 
--  The regulatory approval process for the drilling of the second vertical
    well within EP-98 is ongoing with spudding scheduled to commence
    immediately post drilling Beetaloo W-1 well.

Philip O'Quigley, CEO of Falcon commented

"I am delighted to update the market on the results of the in-depth shale evaluation program and petrophysical 
analysis carried out of all the technical data gathered on the three wells drilled during 2015. The results 
confirm early indications, as previously communicated, that this is a highly prospective basin.

Falcon's shareholders can look forward to another exciting year of exploration activity which has the potential to 
transform the value of your company. Falcon remains fully carried throughout 2016 by our partners Origin and 
Sasol."

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.

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. 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 dollar                                                    
CSG    Coal seam gas                                                        
LNG    Liquefied natural gas                                                
LPG    Liquefied petroleum gas                                              
MW     Megawatt                                                             
PJ(E)  Petajoule (equivalent)                                               
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, schedule, testing 
and objectives of the wells to be drilled in the Beetaloo basin Australia, expected contributions of the partners, 
the prospectivity of the Middle Velkerri & Kyalla shale plays 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. 

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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
[phone]

OR

Davy (NOMAD & Broker)
Anthony Farrell
[phone]

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Falcon Oil & Gas Ltd.