FO announces the closing of its previously announced acquisition of an additional 25% working interest in the Beetaloo Basin project

DENVER, Jun 16, 2009 (Canada NewsWire via COMTEX News Network) Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company") announces that, further to its press release dated May 27, 2009 wherein the Company announced entering into a binding agreement with PetroHunter Energy Corporation ("PetroHunter") and the second purchase and sale agreement previously filed on SEDAR, pursuant to which Falcon announced its intention to acquire (the "Acquisition") an additional undivided 25% working interest in PetroHunter's four exploration permits covering seven million acres in the Beetaloo Basin of the Northern Territory, Australia (the "Beetaloo Basin Project"), that all conditions to closing the Acquisition have been fulfilled. The Acquisition will bring Falcon's total working interest in the Beetaloo Basin Project to 75%.

Under the terms of the Acquisition, the principal consideration being paid by the Company for this transaction is the exchange of the US$5,000,000 note receivable from PetroHunter. In addition, the Company has agreed to pay certain vendors who had provided goods or services for the Beetaloo Basin Project, prior to the Company acquiring its 50% interest in September 2008, in exchange for inventory and operator bonds of approximately the same value. As a condition of closing, the Company has become operator of the Beetaloo Basin Project, and PetroHunter and the Company have entered into an escrow agreement which governs the release of all remaining common shares in the Company previously issued to PetroHunter. The Company has also reassigned to PetroHunter the undivided 25% working interest previously acquired in five wells, including the 40-acre tract surrounding each well (the "Five Wells") in PetroHunter's 20,000-acre Buckskin Mesa Project located in the Piceance Basin, Colorado. The Company has been relieved of all obligations related to the Five Wells, including reclamation and plugging and abandonment obligations, and has relinquished its right to the unexpended testing and completion funds previously advanced for the Buckskin Mesa Project.

Marc A. Bruner, the Chairman, CEO and President of Falcon, beneficially holds 35.4% of the issued and outstanding shares of PetroHunter. The Acquisition was governed by a committee of the independent directors of Falcon.

Source: StockHouse.com