Falcon Oil & Gas Announces Results of Romanian Exploration Well and Provides Operations Update in Hungary

VANCOUVER, Sept. 12 /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd. (TSXV: FO) announced today the preliminary results of its first Romanian coalbed methane well and provided an update of its deep gas project in Hungary.



Romania

Falcon's Lupeni South-1 well in the Jiu Valley Coal Bed Methane Concession in Romania has reached the primary target of Coal Seam #3. There were numerous gas shows in Seam #3 and also in the secondary targets in Seam #13 and Seam #14. The gross thickness of Seam #3 is approximately 21 meters, over an interval from 309 to 330 meters.

The core analyses and preliminary desorption measurements in the field indicate the potential presence of coalbed methane in multiple horizons but give no indication at this time of the potential gas production rates or recoverable reserves to be expected.

Based on the gas shows and core information, Falcon and the other working interest owner in the prospect, Pannonian International, Ltd., a wholly-owned subsidiary of Galaxy Energy Corporation, have determined to enlarge the cored section to run casing to total depth and to commence completion and testing operations.

Falcon has earned a 75% working interest in the 21,538-acre Jiu Valley coalbed methane concession, while Pannonian retains a 25% working interest.

"We are pleased with the initial results from our first well in Romania," stated Marc A. Bruner, President, CEO and Chairman of Falcon. "The drilling of this well confirms our geological model, which was derived from our research into the Romanian coal mining records. The three main coal seams were encountered at the depths and thicknesses that were predicted by our geologists. We also have some initial field measurements of the gas content of the Romanian coals that are encouraging.

"The next step for us is to enlarge the hole to run production casing. We have engaged Schlumberger's top team of coalbed methane experts in Pittsburgh to design and supervise the hydraulic fracture stimulations. While the subsequent completion and testing operations will ultimately determine the potential of this particular well, we believe we're off to a great start in Romania."


Hungary

Falcon has conducted and interpreted a 3D seismic survey over a 16 square kilometre portion of the Tisza Licence area. In addition, it has purchased and reprocessed an additional set of 3D seismic data covering the southern portion of the Tisza License. Based on the new seismic data, Falcon has finalized the first three drilling locations in Hungary. Falcon will drill a deep well on the Mako License at the Mako 5 location and two intermediate depth wells-the Szekkutas well on the Mako License, and the Pusztaszer well on the Tisza License.

Marc A. Bruner commented, "The 3D seismic data has greatly increased our understanding of the geology in this massive basin. By collecting and interpreting the 3D data over the summer, we have come up with multiple drilling locations, three of which will be drilled in our fall program. We have a large inventory of premium casing and two drilling rigs under contract, so we're ready to start drilling. Our operations group plans to start building the first of the surface locations for these wells within a week, with the goal of having both rigs moved in and working in October. These are exciting times for Falcon."

Falcon Oil & Gas Ltd. is a Canadian corporation, which is in the business of oil and gas exploration and production. It has operations in Hungary, Romania and Canada.


Contacts:

Falcon Oil & Gas Ltd.

Marc A. Bruner
President, CEO and Chairman

Allan D. Laird
Director (303) 803-3646

Contacts:

CTA Public Relations
Bevo Beaven
Vice President/General Manager
(303) 665-4200

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