Thursday, June 3, 2010

Falcon Oil & Gas' Australian Subsidiary Closes on Initial US$4.9 Million of Private Placement

DENVER, June 3 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon") a global energy company focused on acquiring, exploring and developing acreage positions of unconventional and conventional oil and gas resources, today announced that the company's 75% owned subsidiary, Falcon Oil & Gas Australia Limited ("Falcon Australia"), has closed on an initial US$4.896 million portion (the "First Tranche") of its previously disclosed private placement.

Under the terms of the private placement outlined in Falcon Australia's offer memorandum, previously filed on Sedar in January 2010, Falcon Australia intends to sell up to 50 million shares of its common stock ("FA Share"), at a price of US$1.00 per FA Share with an attached option (the "Offer"). Each option entitles the holder to acquire one additional FA Share in respect of each FA Share sold for a period of three years from date of issue, at an exercise price of US$1.25. Closing of any remaining tranches is expected to occur by July 31, 2010.

The sale of the full 50 million FA shares will result in a maximum reduction of Falcon's holdings in Falcon Australia from 75% to 60%. Closing of the First Tranche reduced Falcon's holdings in Falcon Australia to 73%, through the issuance of 4.896 million FA shares.

Source: CNW Group