Falcon Oil & Gas Ltd Falcon Oil & Gas Ltd.: Preliminary Results of Second Beetaloo Well, Amungee NW-1 and Acceleration of Dri...

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Falcon Oil & Gas Ltd.: Preliminary Results of Second Beetaloo Well, Amungee NW-1 and Acceleration of Drilling Program With First Horizontal Well Brought Forward to 2015
Falcon Oil & Gas Ltd.
("Falcon")

Preliminary Results of Second Beetaloo Well, Amungee NW-1
And
Acceleration of Drilling Program With First Horizontal Well Brought Forward to 2015

Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is pleased to announce that drilling operations have
successfully concluded on the Amungee NW-1 well. Results encountered are very encouraging, with the well drilled
to a total depth ("TD") of 2,611 meters.

Preliminary evaluation of the Amungee NW-1 vertical exploration well confirms:

=- The continuation of the Middle Velkerri formation 25 kilometres east of
the first 2015 Beetaloo Basin well drilled, Kalala S-1, falling in a
highly prospective gas mature depth window;
=- A gross interval of over 500 meters shale gas sequence with net pay
exceeding 150 meters;
=- Excellent gas shows from at least two prospective shale sweet spots
within the Middle Velkerri formation;
=- Total organic carbon ("TOC") estimates range 2.5-5% within the best
shale units representing a highly encouraging result in comparison with
commercially successful North American shale gas plays;
=- Gas mature, highly saturated shale gas interval identified in the "B
Shale" as immediate horizontal drilling target.

A total of 36 meters full diameter core, 50 sidewall cores and extensive wireline log data were acquired that,
together with the highly positive data from the Kalala S-1 well, will enable the JV to perform an in-depth
evaluation of the physical properties of the prospective shale intervals including gas saturation, TOC, reservoir
pressure, frackability (mineralogy, rock mechanics) and petrophysics (porosity and permeability).

Acceleration of Drilling Program with First Horizontal Well brought forward to 2015

Following the encouraging results of the first two wells, the Beetaloo JV partners have confidently decided to
bring forward the drilling of the first horizontal well in the Beetaloo Basin, originally planned for the end of
2016, into October-November 2015. Based on the high gas saturation and favourable shale properties encountered in
the Amungee NW-1 vertical well, the "B Shale" Middle Velkerri has been selected as the target of a 1,000 meters
horizontal section representing the "Amungee NW-1H" well.

Highlights:

=- The purpose of drilling the Amungee NW-1H horizontal in 2015 and its
subsequent multi-stage hydraulic fracturing in 2016 is to prove the
technical viability of the highly prospective Middle Velkerri shale gas
play;
=- Amungee NW-1H will target the Middle Velkerri "B Shale" reservoir based
on high gas saturation and excellent reservoir quality experienced in
both the Kalala S-1 and Amungee NW-1 vertical wells;
=- The "B Shale" is approximately 45 meters (150 feet) thick, a rock volume
well suited to multiple hydraulic fracture stimulation;
=- Falcon remains carried until the end of 2018 and this acceleration in
the work program will have no financial impact on the Company.

Diagnostic Fracture Injection Tests ("DFITs")

The JV partners have agreed to expand the exploration program by introducing Diagnostic Fracture Injection Tests
("DFITs") on all of the vertical wells drilled in 2015 and 2016. DFIT is the most adequate tool to obtain
reservoir quality data, such as pressure and permeability and completion quality data, all pertaining to the
prospectivity of the Middle Velkerri shale gas play. There is no cost impact on these additional positive measures
for Falcon.

Philip O'Quigley, CEO of Falcon, commented:

"This is an incredibly exciting time for the Company and a positive development for the JV. Today's news, not only
demonstrates the huge commitment from our partners Origin and Sasol but it is a massive endorsement of the
potential prospectivity of our Beetaloo acreage.

"We remain fully carried with the drilling of the horizontal well due to commence imminently, 12 months ahead of
schedule, which will assess hydrocarbon saturation and reservoir quality of the Middle Velkerri 'B Shale'
formation. Subsequent multi-stage hydraulic stimulation of the Amungee NW-1H well will provide key technical
information such as gas flow rates and delivery potential and, ultimately, help the JV to move as fast as possible
to horizontal production test wells within the Middle Velkerri formation."

Notes for the editor:

Why a diagnostic fracture injection ("DFIT") test?

It is a small volume, low rate injection test followed by an extended shut-in period. This is essentially a pre-
main fracturing breakdown treatment where the pressure falloff data is recorded and analysed to gain information
about several important parameters such as:

1. Identifying the different leak off types: normal, pressure dependent,
fracture height recession and fracture tip extension;
2. Identifying closure pressure and stress regime;
3. Determining pore pressure and permeability from the after-closure data.

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

For further information, please contact:

CONTACT DETAILS:

Falcon Oil & Gas Ltd. +353 1 417 1900
Philip O'Quigley, CEO+353 87 814 7042
Michael Gallagher, CFO+353 1 417 0814
John Craven Non-Executive Chairman+353 1 417 1900

Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell +353 1 679 6363

GMP Securities Europe LLP (Joint Broker)
Rob Collins / Emily Morris+44 20 7647 2800

CAMARCO
Billy Clegg +44 20 3757 4983
Georgia Mann+44 20 3757 4980

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 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 6,000 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.

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 32,400 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 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,

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