FO announces Participation Agreement with Hess Australia for Beetaloo Basin Project

DENVER, May 2 /CNW/ - Falcon Oil & Gas Ltd. ( "Falcon"), an international oil and gas exploration and production company, announced today that Falcon Oil & Gas Australia Ltd ("Falcon Australia"), Falcon's 73 percent owned subsidiary, has signed a Participation Agreement with Hess Australia (Beetaloo) Pty Ltd ("Hess"), an affiliate of Hess Corporation, for the acquisition of an interest in onshore Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area").

The terms of the agreement remain as outlined in the Letter of Intent between the two companies announced on February 22, 2011. In brief, and subject to certain regulatory approvals and standard conditions, Hess will earn a 62.5 percent working interest in approximately 25,200 square kilometers (6,227,500 acres) by making a payment to Falcon Australia, acquiring warrants in Falcon Oil & Gas Ltd., conducting an extensive seismic programme, and drilling five wells to explore and appraise the Agreement Area. Hess has the right to withdraw from the project following the seismic evaluation and again following the drilling phase, in which event the entire interest would transfer back to Falcon Australia. In addition to its 37.5 percent working interest in the joint acreage, Falcon Australia will retain 100 percent ownership in the entirety of EP99 and 405 square kilometers (100,000 acres) in EP98.

The seismic survey is anticipated to commence once necessary government and land users' approvals are obtained. Falcon Australia will also carry out its work planned for the Shenandoah-1 well, commencing with re-opening and casing the existing wellbore planned for the third quarter 2011, followed by a comprehensive testing program.

Source: CNW Group

Falcon Oil & Gas announces Letter of Intent with Hess Corp. for Beetaloo Basin Project

Falcon Oil & Gas Ltd. ( "Falcon"), an international oil and gas exploration and production company, announced today that Falcon Oil & Gas Australia Ltd ("Falcon Australia"), Falcon's 73 percent owned subsidiary, has entered into a letter of intent with Hess New Ventures Limited ("Hess"), a unit of Hess Corporation, for the acquisition by Hess of an interest in onshore Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area").

The agreement area consists of approximately 25,200 square kilometers (6,227,500 acres) and will ultimately be held jointly, with Falcon Australia holding a 37.5 percent undivided working interest and Hess holding a 62.5 percent undivided working interest. Falcon Australia will retain 100 percent interest in the whole of Exploration Permit 99 consisting of approximately 2,590 square kilometers (639,300 acres), and will also retain the entire interest in the existing Shenandoah-1 wellbore in Exploration Permit 98 and approximately 405 square kilometers (100,000 acres) around the Shenandoah-1 wellbore. This will result in Falcon Australia retaining a net interest in the four exploration permits of approximately 44%.

Under the terms of the letter of intent, Hess will make a US$17.5 million payment to Falcon Australia upon completion of a participation agreement and a joint operating agreement. Hess will pay Falcon US$2.5 million and Falcon will issue Hess 10,000,000 warrants exercisable into an equal amount of common shares in the capital of Falcon ("Shares") at an exercise price per Share equal to the greater of the closing price of the Shares on February 18, 2011 and February 22, 2011.

Under the terms of the agreement Hess will undertake a US$40 million seismic acquisition program beginning in 2011. After completion, processing and interpretation of the seismic data Hess can elect to continue to the next phase of the work program which includes conducting a five well program to explore and appraise the agreement area, beginning in 2012. Hess will cover the full cost of this work program.

Falcon Australia plans to test the prospective intervals in the Shenandoah-1 wellbore in the third quarter of 2011. Upon conclusion of the testing Hess will pay Falcon Australia US$2 million for the data acquired.

Robert Macaulay, CEO of Falcon and Falcon Australia, said, "Falcon is very excited to enter in to this partnership with Hess and looks forward to working with them to explore and develop the Beetaloo Basin. Not only does Hess bring to the table their vast international experience in both conventional and unconventional plays, but they are also a well-established, trusted and successful company in Australia."

The participation agreement and the joint operating agreement are subject to the approval of the Board of Directors of each of Falcon, Falcon Australia and Hess, and the transaction as a whole is subject to receipt of all governmental and regulatory consents, including the TSX Venture Exchange.

Source: CNW Group

FO announces Closing of FO Australia Private Placement

DENVER, Nov. 17 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon") announces today that, further to its press release of June 3, 2010, its 73.1% owned subsidiary, Falcon Oil & Gas Australia Limited ("Falcon Australia") has received subscriptions to its previously announced offering for gross proceeds of $1,217,578.00. The offering is expected to close imminently. Following closing Falcon will own 72.7% of Falcon Australia.

Source: CNW Group

Large shale gas find in Karoo would be ‘game changer

JOHANNESBURG (mining weekly.com) – A discovery of large recoverable shale gas reserves in South Africa's Karoo Basin would be a "game changer" in the broader South African energy market context, Sasol Petroleum International MD Ebbie Haan said on Monday.

[...]

Even if the shale is now found to be suitable for shale gas extraction, that would not have been registered in the old records. So, in essence, the companies are starting from scratch, which means that the awarding of TCPs is appropriate.

The Sasol/Statoil/Chesapeake bid appears to have been pipped at the post, as the area in South Africa's Karoo Basin of most interest is the area that has now been completely taken up firstly by Falcon Oil & Gas and then by Shell.

Falcon, the first to apply, has got 30 000 km2; Shell bid a couple of months later and secured about 100 000 km2; and Sasol/Statoil/Chesapeake was a week or two behind Shell, with Anglo American coming in fourth.

When, towards the end of last year, the Sasol consortium made an application for a full exploration right, it was aware that Shell had lodged a prior application ahead of it for much of the area that it was applying for, and that it was likely not to get all it wanted.

In fact, Mining Weekly Online understands that, by the time Petroleum Agency SA had processed Shell's application, there was nothing left for Sasol, which is why Sasol is now having to contend with the outer, more distal part of the Karoo Basin.

Falcon got what it asked for; Shell wanted that as well, but was too late, which is why the area that Shell was granted in December has an east-west window cut in it, which is where Falcon's area is.

In a nutshell, the main core has gone to Falcon and Shell; the Sasol/Statoil/Chesapeake consortium is having to be content with the periphery, and what is left for Anglo is only a fraction of what it applied for, and Anglo will probably end up with a TCP for only about 10 000 km2.

[...]


Read the full Article on MiningWeekly.com

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

Ahlbrandt promotes Australia in the American O&G Reporter

DENVER–Falcon Oil & Gas Ltd. is a global energy company focused on acquiring, exploring for and developing oil and gas resources in politically and economically stable countries characterized by high regional demand for energy and existing infrastructure to permit rapid delivery of produced oil and gas to market.

A key strategic component of Falcon’s business strategy is to leverage to large international acreage positions, the corporate expertise and experience it has acquired in drilling, completing and producing both conventional and unconventional North American reservoirs. Therefore, the Beetaloo Basin in the Northern Territory of Australia–arguably the oldest petroleum basin in the world, with source rocks dating to 1.4 billion years ago (Mesoproterozoic)–represents an ideal strategic fit for our company. It is an underexplored basin roughly the size of the Williston Basin, located in a politically stable country; it has potential for conventional hydrocarbon reservoirs as well as unconventional oil and gas resource plays; and it is in relative close proximity to marketing infrastructure.

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Updated Ryder Scott Report Increases Oil-In-Place Best Estimates in Falcon's Beetaloo Basin Property

With Unrisked Undiscovered Oil-In-Place Best Estimate Increasing from 192.91 Billion Barrels to 395.11 Billion Barrels, Company Initiates Planning for the Potential of Several Joint Venture Partners in the Beetaloo Basin Project

DENVER, May 10 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company"), a global energy company focused on acquiring, exploring and developing acreage positions of unconventional and conventional oil and gas resources, today announced the results of the recently completed Ryder Scott Company-Canada Resource Report, dated May 3 2010, on the Beetaloo Basin Project in the Northern Territory (NT), Australia (the "Beetaloo Basin Project") entitled "Falcon Oil & Gas Ltd. Evaluation of the Unconventional Oil Resource Potential Pertaining to Certain Acreage Interests in the Beetaloo Basin Northern Territory, Australia as of May 1, 2010"(the "Report").

Ryder Scott has prepared an updated evaluation of the unconventional oil resource potential of the Beetaloo Basin Project (previous report available on Sedar) which consists of four Exploration Permits (the "Permits") comprising approximately 28,200 square kilometres (7 million gross acres), covering the majority of the Beetaloo Basin and basin margin highs. Falcon's 75% owned subsidiary, Falcon Oil & Gas Australia Pty Ltd. ("Falcon Australia"), owns 100 % of the Permits, and is the operator of the Beetaloo Basin Project.

The Report on the unconventional oil resource potential of the Beetaloo Basin Project describes a possible distribution of the unrisked prospective (recoverable) portion of unrisked "undiscovered original oil-in-place resources," as defined by the Canadian Oil and Gas Evaluation Handbook ("COGEH") and does not represent an estimate of reserves or contingent resources. The Report has been prepared in accordance with the Canadian standards set out in the COGEH and is compliant with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities."

The Company notes that while the unrisked, undiscovered oil-in-place has increased in this updated report, lower recovery factors were utilized resulting in a change of less than 10% in the unrisked, prospective (recoverable) oil resource estimate. This current update evaluates only the oil resource potential of the unconventional shale oil deposits in the Beetaloo Basin Project as the gas resource potential was not re-evaluated in this report.

Ryder Scott's unrisked, undiscovered and prospective (recoverable) oil resource assigned to Falcon Australia's lands in the Beetaloo Basin is as follows:

                                  Table 3: Total Undiscovered and
                               Prospective (Recoverable) Oil
                              Resources in the Beetaloo Basin,
                                         Australia
                             --------------------------------
                                     As of May 1, 2010
                                     -----------------
Reservoir              Unrisked Undiscovered    Unrisked Prospective
                           Oil-In-Place          (Recoverable) Oil
                           (Billion stb)             Resources
                                                  (Billion stb)
                        Low    Best    High     Low   Best   High
                        ---    ----    ----     ---   ----   ----
Hayfield                0.05    0.09    0.15    0.01   0.01   0.02
--------                ----    ----    ----    ----   ----   ----
Jamison                 8.22   11.92   16.40    0.80   1.34   2.15
-------                 ----   -----   -----    ----   ----   ----
Conventional
 Subtotal               8.27   12.01   16.55    0.81   1.35   2.17
------------            ----   -----   -----    ----   ----   ----
Upper Kyalla Shale
 Oil (Revised)         54.30  104.90  176.50    2.12   4.40   8.10
------------------     -----  ------  ------    ----   ----   ----
Lower Kyalla Shale
 Oil                   16.90   37.10   62.20    0.67   1.55   2.85
------------------     -----   -----   -----    ----   ----   ----
Middle Velkerri
 Shale Oil            184.50  241.10  317.20    6.66  10.24  15.33
---------------       ------  ------  ------    ----  -----  -----
Unconventional
 Subtotal              255.7   383.1   555.9    9.45  16.19  26.28
--------------         -----   -----   -----    ----  -----  -----
Total Oil Resource
 within the Beetaloo
 Basin                263.97  395.11  572.45   10.26  17.54  28.45
--------------------  ------  ------  ------   -----  -----  -----

    Table 3, Appendix 2 from the Report as of May 1, 2010,
 dated May 3, 2010.  For a definition of "Low" "Best"
 and "High," see Section 5 of the Report titled
 "Definitions of Resources and Reserves," item 5.3.5
 titled "Uncertainty Category."  The total oil and gas
 resource is an arithmetic summation of the multiple
 estimates of the individual reservoir resources.  Under
 Section 5.2 of COGEH: Undiscovered Petroleum Initially-
 In-Place (equivalent to undiscovered resources) is
 that quantity of petroleum that is estimated, on a
 given date, to be contained in accumulations yet to be
 discovered.  Prospective Resources are those quantities
 of petroleum estimated, as of a given date, to be
 potentially recoverable from undiscovered accumulations
 by application of future development projects.
 Prospective resources have both an associated chance of
 discovery and a chance of development. There is no
 certainty that any portion of the undiscovered
 resources will be discovered and that, if discovered,
 it may not be economically viable or technically
 feasible to produce any of the resources.

Commenting on the Report, Marc A. Bruner, President and Chief Executive Officer of Falcon, stated, "Our ongoing data analysis from the Beetaloo Basin continues to provide evidence of the immense hydrocarbon potential of this area. The increased oil-in-place volumes in this updated report and the more conservative recovery factors utilized should be an asset in our search for partners. The Beetaloo Basin is one the few remaining unexplored onshore ancient sedimentary basins in the world, analogous to basins in locations such as Siberia and Oman. Our property is well situated for development as it is located 310 miles southeast of the Darwin, which has both a major LNG facility and export terminal; has two underutilized pipelines nearby; and has a highway and railway line that cut through the heart of the property. Given the scope of these early oil estimates in conjunction with the previously estimated gas resources, the property's size, and ease of access and transport, we anticipate having the ability to attract several major joint venture partners. We have established a data room for this project and currently have potential joint venture partners reviewing the project. We expect to re-enter the Shenandoah 1 well and commence testing during the third quarter of 2010."

Bruner continued, "Australia is an ideal country in which to conduct business. With a stable legal system and a favorable fiscal regime that encourages exploration, working in Australia fits perfectly within our business strategy. We seek to discover and assemble underdeveloped lands, partner, and then grow our oil and gas production base through a diversified portfolio of development and exploration opportunities. Success in Australia could provide us the resources and opportunity to successfully replicate the process in other locations throughout the world."

Source: CNW Group

Beetaloo mentioned in O&G Investor Issue April 2010

The Beetaloo Basin in Northern Territory, Australia, could be the next sweet spot for unconventional and conventional hydrocarbon production. The basin’s attributes: It’s a multimillion-acre site in a politically and economically stable country, with existing pipeline access, currently estimated recoverable resources of 19 billion barrels of oil and 64 trillion cubic feet of gas at depths between 5,000 and 8,500 feet, and energy-hungry neighbors.

Falcon Oil & Gas Ltd. of Denver, the sole operator of more than 7 million acres under license in the remote basin, is in the process of proving that the Kyalla and Velkerri shales are Southern Hemisphere rivals to Marcellus, Haynesville and Barnett shales. The high total-organic-content shales, Kyalla (at about 5,000 feet) and Velkerri (at about 8,500 feet), are typically 2,600 feet thick across the basin. The shales are separated by a possible conventional formation, the Moroak sandstone, which is more than 1,000 feet thick and has conventional poros-
ity and low-permeability intervals.
Testing will begin in 2010, after the rainy season, in a previously drilled exploration well, #1 Shenandoah. Falcon geologists are analyzing core samples from mining operations that used to dominate the resource-rich Australian state.
Australia’s energy-hungry neighbors include China, India, Japan and South Korea.

Source: O&G Investor, April 2010

Interview with Marc Bruner for ABN Newswire at the Resources Roadshow

Upcoming FO Australia Promotion (Updated2)

MPS has invited Marc A. Bruner, President and Chief Executive Officer of Falcon Australia and its Beetaloo Basin Project for a Investor briefing taking place Thursday 21st Jan 2010.
Source: http://www.martinplacesecurities.com.au/events.php

Dr. Thomas Ahlbrandt (Vice President of Exploration, Falcon Oil & Gas) speaks on "The Search for Foreign Unconventional Gas and Oil" – Opportunities from an Independent's Perspectice at the 2010 Winter NAPE on February 10th 2010. Also presenting at NAPE 2010 is Daniel W. Hughes on behalf of Falcon Oil and Gas.
Source: http://www.napeexpo.com/images/stories/docs/working%20forum%20schedule%20for%20web%20site.pdf

Dr. Thomas Ahlbrandt (Vice President Geology) will be presenting FO Australia and the Beetaloo Basin Prospect at the Australian Resources Conference USA (ARC USA) on Tuesday 23rd February 2010 in Denver.
Source: http://www.australianresourcesconferenceusa.com/schedule.html

Gyorgy Szabo will speak on the topic of BCGA's in Central Europe and Australia at the Unconventional Gas 2010 Conference hosted by SMI on the 16th of March 2010 in London.
Source: http://www.smi-online.co.uk/events/programme.asp?is=5&ref=3201&day=2

FO AUS files Offer Memorandum for a 10M-50M Shares placement for US$1.00 per Share

Falcon Oil & Gas Australia Pty Ltd files an Offer memorandum for the placement of 10 million – 50 million Shares at US$1.00 per Share with an attaching option in respect of each issued Share, exercisable at US$1.25 each to raise between US$10 million and US$50 million .

Source: Sedar.com

Texan has faith in oil bonanza

The company that believes it has made a world-class oil and gas strike in the Territory Outback is looking for joint venture partners. Canada-based Falcon has spent $20million exploring the Beetaloo Basin in the past four years and expects to spend at least $6million more in 2010. Company boss Marc Bruner believes production could start within the next three years.

"We've got interested parties looking at all the technical information," he said during a visit to Darwin. Mr Bruner, the son of a Texas oilman, freely admits he faces a big challenge in proving that it is technically possible to extract the oil and gas profitably.

An independent report by major international resources analyst Ryder Hunt says that Beetaloo - a 30,000sq km tract of land surrounding Daly Waters, 600km south of Darwin - holds 19 billion barrels of oil and 63 trillion cubic feet of shale gas. That's five times more gas than the $12billion offshore Inpex project.

Mr Bruner said Beetaloo could one day be producing hundreds of thousands of barrels of oil a day. "This could change the face of Australia," he said. Mr Bruner said it had been known for a long time that oil and gas was held in shale. But it was only recently that the technology was developed to bring it to the surface. There are several big shale oil and gas operations in the United States. Mr Bruner said he was confident US technology would work in Australian geological conditions.

He said the oil and gas was held in shale and sand - much of it very thick and some of it much richer than world-class fields in America. "For sure the oil is there, for sure the gas is there. So it's not a question of what we've found, but a question of whether we can produce it commercially."

Mr Bruner, the former boss of Ultra Petroleum, added: "Oil is in my blood. And this is the biggest thing I've ever found. "There's nothing like it onshore - and maybe not even offshore." Falcon owns 75 per cent of the exploration permits and its partner, Sweetpea Petroleum, 25 per cent.

Source: NTNews

Falcon Oil & Gas Announces Agreements With PetroHunter Energy Corporation On Australia Project

DENVER, Dec 07, 2009 /PRNewswire-FirstCall via COMTEX/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon," "Falcon Canada," or the "Company"), a global energy company focused on acquiring, exploring and developing large acreage positions of unconventional and conventional oil and gas resources, today announced that Falcon Canada and PetroHunter Energy Corporation ("PetroHunter") have entered into two agreements (the "Agreements"), which provide for Falcon Oil & Gas Australia Pty Ltd's ("Falcon Australia") acquisition of PetroHunter's remaining 25% interest in the four Beetaloo Basin Exploration Permits (the "Permits") in the Northern Territory of Australia, and for Falcon Australia to engage in a private placement of equity securities (the "Financing") to finance further exploration on the Permits. The two companies' Boards of Directors have approved the Agreements.

The Agreements provide for the following: (1) For conversion of debt owed by Falcon Australia to Falcon Canada, Falcon Canada will own 75% of the common shares in the restructured Falcon Australia; (2) In consideration for an assignment to Falcon Australia of the undivided 25% working interest which PetroHunter's wholly-owned subsidiary, Sweetpea Petroleum Pty Ltd ("Sweetpea") owns in the four Permits, Sweetpea will own 25% of the common shares of the restructured Falcon Australia; (3) Falcon Australia will now own 100% of the working interest in the Permits; (4) The parties will enter into a Master Services Agreement ("MSA") providing for Falcon Australia to operate the Permits; (5) Falcon Canada will receive a management fee under the MSA; and (6) Falcon Australia intends to enter into an agreement with Martin Place Securities ("MPS"), based in Sydney, Australia, to undertake the Financing. The terms of the agreement with MPS and the amount of the Financing have not yet been determined.

The closing of the Agreements is subject to various conditions first being satisfied, including TSX Venture Exchange approval.

Source: MarketWatch

Falcon Australia Pty Ltd intends ASX IPO in 2010

Before any offer is finalized the working interests of both Falcon Oil & Gas Ltd (75% through Falcon Australia Pty Ltd) and Petrohunter Energy Corporation Ltd (25% through Sweetpea Petroleum Pty Ltd) would be consolidated into equity interests in Falcon Australia Pty Ltd; so that Falcon Oil & Gas and Petrohunter Energy Corporation would own 75% and 25% of Falcon Australia respectively.

Once this consolidation has taken place Falcon Australia Pty Ltd will make an excluded offer to sophisticated investors, pursuant to Section 708(8) of the Australian Corporations Act, so that the offer is exempt from compliance with the prospectus provision of the Corporations Act. The company is seeking to raise pre-IPO capital of a minimum of US$50 million at US$1.00 per ordinary share and a 1 for 1, 3 year warrant at US$1.25/share. Part of this raising will be completed in Australia and part in the USA.

The company intends to move towards IPO in the first half of 2010.


Source: Martin Place Securities Pty Ltd - Download PDF

Ryder Scott Issues Update on Beetaloo Basin

DENVER, Oct. 27 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company"), a global energy company focused on acquiring, exploring and developing large acreage positions of unconventional and conventional oil and gas resources, announced that Ryder Scott Company provided a letter to Falcon, dated October 23, 2009 (the "Letter"), which supports the Ryder Scott Company-Canada Resource Analysis Report, dated August 5, 2009, effective date July 1, 2009 ("Report"), on the Company's Beetaloo Basin Project in the Northern Territory (NT), of Australia.

Ryder Scott engaged in a preliminary review of all the newly available data from the deepening of the Shenandoah-1 well, including the logs and cores. Based on Ryder Scott's review of these data, the Ryder Scott Letter states, "This work supports the resource estimates and conclusions presented in the Report. The preliminary analyses indicate that both the Lower Kyalla and Middle Velkerrie organic rich shales likely contain significant amounts of adsorbed gas. In the deepened Shenandoah #1 Well, the mud-log recorded very high gas readings while drilling through both shale intervals and gas was observed in the drilling mud. High mud-log gas readings and high resistivities were also observed from the top of the Moroak Sandstone (1,718 meters) down to approximately 1,806 meters at which point both the gas readings and log resistivities dropped. Preliminary log analyses suggest the possibility of a gas/water contact at that point and the possible existence of a conventional gas accumulation in the Moroak Sandstone in the well."

The Letter also includes various cautionary notes regarding the uncertainty and preliminary nature of the findings and data at this stage in the exploration of the properties.

Falcon's interest in the Beetaloo Basin consists of four Exploration Permits (the "Permits") comprising approximately 28,200 square kilometers (7 million gross acres), covering the majority of the Beetaloo Basin and basin margin highs. Through its wholly owned Australian subsidiary, Falcon Oil & Gas Australia Pty Ltd, the Company owns an undivided 75 percent working interest in the Permits, and is the operator of the Permits.

Their resource evaluation of the Beetaloo Basin is as follows:

[Tables 9 and 10 from the July 1, 2009 Ryder Scott Report. For a definition of “Low” “Best” and “High,” see Section 5 of the Report titled “Definitions of Resources and Reserves,” item 5.3.5 titled “Uncertainty Category.” The total oil and gas resource is an arithmetic summation of the multiple estimates of the individual reservoir resources. Under Section 5.2 of COGEH: Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, it may not be economically viable or technically feasible to produce any of the resources.]

The Report on the hydrocarbon resource potential of the Beetaloo Basin describes a possible distribution of the unrisked prospective (recoverable) portion of unrisked “Undiscovered in-place Resources,” as defined by the Canadian Oil and Gas Evaluation Handbook (COGEH) and does not represent an estimate of reserves or contingent resources. The Report has been prepared in accordance with the Canadian standards set out in the COGEH and is compliant with National Instrument 51-101 “Standards of Disclosure for Oil and Gas Activities.”

Ryder Scott evaluates oil and gas properties and independently certifies petroleum reserve and resource quantities in the U.S., Canada and internationally. Founded in 1937, Ryder Scott is one of the largest, oldest and most respected reservoir-evaluation consulting firms in the industry.

Source: CNW Group

Moyes & Co promotes Beetaloo at NAPE 2009

Beetaloo Basin Information from the Presentation of Moyes & Co at NAPE 2009 (see Slides 3 to 7)

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Outback gas strike 'bigger than Inpex'

Industry experts are cautiously optimistic about claims that a gas field nearly five times the size of the Inpex project may have been discovered in the Territory Outback.

Falcon Oil & Gas says that new estimates suggest the Beetaloo Basin — a vast tract of land surrounding Daly River, 600km south of Darwin — holds 19 billion barrels of oil and 63 trillion cubic feet of shale gas. The Inpex Ichthys field off the north Australian coast has a confirmed resource of 12.8 trillion cubic feet of natural gas.

Canada-based Falcon believes production at Beetaloo could begin in about six years.

The gas would probably be piped to Darwin for processing. Independent industry sources are not so excited about the latest resource estimates, but are still optimistic. They said that an analysis by reputable international consultant Ryder Scott showed only "potential undiscovered" oil and gas. "It's an assessment of what might be there given the knowledge of the geology, but drilling will be required to determine whether these accumulations exist and are recoverable," a source said.

"It should also be stressed that most of the oil and gas is from unconventional targets — oil shale, gas shale and basincentred gas accumulations — which are potentially costly to recover and, therefore, may or may not be viable.

"Hopefully, the estimates will turn out to be right, and there could be a major oil and/or gas discovery in the Beetaloo. But, for the time being, these estimates should be treated with (optimistic) caution." Falcon's Beetaloo exploration permits cover nearly 28,200 square kilometres. Territory-based company consultant John Carroll said the latest resource estimates would be used to raise more cash for drilling.

A drilling operation employing about 20 workers is under way on Hayfield Station, near Dunmarra.

Another is expected next year. Falcon admits that its approach is "unconventional". It is based on the theory that the oil and/or gas is dispersed over a large area and is not accumulated in one location. "Extraction, therefore, requires a number of production wells." It added: "There is no certainty that any portion of the undiscovered resources will be discovered and that, if discovered, it may not be economically viable or technically feasible to produce any of the resources."

Source: Northern Territory News

Ryder Scott Reports Unrisked Prospective Resource Best Estimates of 19 Billion Barrels of Oil and 64 Trillion Cubic Feet of Gas in Australian Beetaloo

DENVER, Aug. 18 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company"), a global energy company focused on acquiring, exploring and developing large acreage positions of unconventional and conventional oil and gas resources, today announced the results of the recently completed Ryder Scott Company-Canada Resource Analysis Report ("Report") on the Company's Beetaloo Basin Project in the Northern Territory (NT), of Australia as of July 1, 2009.

Based on all available data, Ryder Scott has prepared an evaluation of the hydrocarbon resource potential pertaining to Falcon's interests in the Beetaloo Basin which consist of four Exploration Permits comprising approximately 28,200 square kilometres (7 million gross acres), covering the majority of the Beetaloo Basin and basin margin highs. Through its wholly owned Australian subsidiary, Falcon Oil & Gas Australia Pty Ltd, the Company owns an undivided 75 percent working interest in the Permits, and is the operator of the Permits.

The Report on the hydrocarbon resource potential of the Beetaloo Basin describes a possible distribution of the unrisked prospective (recoverable) portion of unrisked "Undiscovered in-place Resources," as defined by the Canadian Oil and Gas Evaluation Handbook (COGEH) and does not represent an estimate of reserves or contingent resources. The Report has been prepared in accordance with the Canadian standards set out in the COGEH and is compliant with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities."

Read the complete resource estimates at CNW Group

Falcon Oil & Gas Ltd. enters into binding agreement to acquire an additional 25% working interest in the Beetaloo Basin Project

DENVER, CO, May 27 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company") announces that, further to its press release dated April 27, 2009, Falcon has entered into a binding agreement with PetroHunter Energy Corporation ("PetroHunter") under which Falcon will 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"). The Acquisition will bring Falcon's total working interest in the Beetaloo Basin Project to 75%.

The closing of the Acquisition is subject to the fulfillment of certain closing conditions, as well as the receipt of all required regulatory approvals. Closing of the Acquisition is now expected to occur on or about June 10, 2009.

Marc A. Bruner, the Chairman, CEO and President of Falcon, continues to be a significant shareholder of PetroHunter. The negotiation and entering into of the other material agreements relating to the transaction continue to be governed by a committee of the independent directors of Falcon.

A copy of the binding agreement, together with other material agreements relating to the transaction, will be available on SEDAR at www.sedar.com.

Source: CNW CA

Falcon Oil & Gas Ltd. enters into a non-binding letter of intent to acquire an additional 25% working interest in the Beetaloo Basin Project

DENVER, CO, April 27, 2009 /PRNewswire-FirstCall via COMTEX/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company") announces that it has entered into a non-binding letter of intent (the "LOI") with PetroHunter Energy Corporation ("PetroHunter") which stipulates that Falcon will 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"). The Acquisition will bring Falcon's total working interest in the Beetaloo Basin Project to 75%.

Under the terms of the LOI, the principal consideration being paid by Falcon for the Acquisition is the forgiveness of the $5 million due under a loan previously made to PetroHunter in October 2008. The LOI also stipulates that, on closing of the Acquisition, Falcon will become operator of the Beetaloo Basin Project, and that PetroHunter and Falcon will enter into an escrow agreement which will govern the release of all remaining shares of the Company previously issued to PetroHunter.

The closing of the Acquisition is subject to the execution of definitive agreements, the fulfillment of certain closing conditions, as well as the receipt of all required regulatory approvals. Closing of the Acquisition is expected to occur on or about May 25, 2009.

Marc A. Bruner, the Chairman, CEO and President of Falcon, continues to be a significant shareholder of PetroHunter. The negotiation and entering into of the non-binding letter of intent and the definitive agreements continue to be governed by a committee of the independent directors of Falcon.

Source: MarketWatch