Falcon Oil & Gas Ltd. Announces Amendment to Production and Development Agreement With ExxonMobil and MOL

DENVER, CO--(MARKET WIRE)--Dec 8, 2008 -- Falcon Oil & Gas Ltd. (CDNX:FO.V) today announced that it has entered into an amendment (the "Amendment") to its April 10, 2008 Production and Development Agreement (the "PDA") with Exxon Mobil Corporation affiliate ExxonMobil Hungary (Mako) Limited ("ExxonMobil") and MOL Hungarian Oil and Gas Plc. ("MOL"). Under the Amendment, the parties agreed to three principal matters: (1) the parties have agreed to use reasonable efforts to combine their respective exploration licenses and mining plots to form one unit consisting of all or part of the Makó Trough; (2) if ExxonMobil and MOL elect to proceed to the Appraisal Work Program, the parties agree to expand the area where wells may be located and apply a portion of the US$100 million Appraisal Work Program expenditures basin-wide in a combined work program, based on the optimum locations from a technical basin-wide appraisal standpoint; and (3) if ExxonMobil and MOL elect to proceed to the Development Work Program, the parties agree to apply 50% of the US$75 million payment due to Falcon to the same expanded basin-wide area in a combined work program.

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