ExxonMobil Gives Notice To Discontinue Testing of Foldeak-1 Well

-Falcon, ExxonMobil & MOL to Evaluate Next Steps-

DENVER, Oct. 8 /PRNewswire-FirstCall/ -- 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 that ExxonMobil
Corporation affiliate ExxonMobil Hungary (Mako) Limited ("ExxonMobil"), the
Company's partner in the joint production and development project located in
the Mako Trough in Hungary, has notified the Company of its recommendation to
cease operations at the Foldeak-1 well site after testing a portion of the
Szolnok Formation. ExxonMobil, MOL and Falcon are discussing next steps
regarding such operations.

ExxonMobil has completed two fracture stimulation tests at 4,358 and 4,200
meters. The Szolnok Formation is approximately 1,200 meters thick in the
Foldeak-1 well, and has a base depth of 4,394 meters.

The lower fracture stimulation at 4,358 meters was completed successfully
yielding average gas flow rates of approximately 200,000 standard cubic feet
(6,000 cubic meters) per day and average water flow rates of approximately 15
to 370 barrels (2.5 to 60 cubic meters) per day over a 10 day period.

The upper fracture stimulation at 4,200 meters was completed successfully
yielding average gas flow rates of approximately 50,000 standard cubic feet
(1,415 cubic meters) per day and average water flow rates of approximately
1,200 to 3,100 barrels (200 to 500 cubic meters) per day over a 46 hour period
(the well is flowing as of the date of this press release).

For both fracture stimulation tests, the water flowed back was very fresh,
less than 5,000 parts per million (ppm) of total dissolved solids. ExxonMobil
also reported the presence of CO2 and H2S at levels of up to 16% and up to 400
ppm, respectively, for both fracture stimulation tests.

The very high water flow rates and calculated test permeability experienced in
the Foldeak-1 well leads Falcon to be believe that the fracture stimulation
connected to a fresh water filled natural fracture system. It is possible that
the matrix Szolnok Formation remains largely untested due to preferential flow
from the natural fractures.

Falcon interprets the intervals above the tested section to be a separate
reservoir and a potential sweet spot within the Szolnok Formation. Core data
indicates that the permeability of these prospective intervals is considerably
higher than permeability measured below. Additionally, net to gross reservoir
quality sand is also much higher and logs indicate that the gas saturation may
increase upwards through the Szolnok Formation. Pressure in these prospective
intervals of the Szolnok Formation is interpreted to be considerably lower
than the pressures encountered deeper.

Falcon is currently evaluating the remainder of the Szolnok Formation to
determine if it is possible to move away from this potential natural fracture
system. Pursuant to the $50 million Initial Work Program requirement as
defined by the parties' agreement to test the Szolnok Formation, Falcon has
recommended additional fracture stimulations at 3,942 and 3,906 meters. The
Company believes that the remaining capital within the Initial Work Program
budget is sufficient to complete this testing.
"The bottom line is that we are disappointed in test results to date," stated
Marc A. Bruner, CEO and President of Falcon. "However, the Mako Trough is an
enormous geography with numerous potential zones and formations which remain
untested. It's our opinion that the tests to date do not represent a complete
evaluation of the hydrocarbon potential of the Szolnok Formation or the Mako
Trough overall. We believe that it may be prudent to complete additional
testing in the Foldeak-1 well to fully understand the true potential of this
resource."

About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is an international oil and gas exploration and
production company, headquartered in Denver, Colorado, incorporated in British
Columbia, Canada, and trading on the TSX Venture Exchange under the symbol
"FO." The Company specializes in the business of conventional and
unconventional oil and gas exploration and production and holds interests in
prospective properties in Hungary and Australia. The Company is focused on
discovering, acquiring, and maturing a globally diversified portfolio of
drilling opportunities with a goal of maximizing shareholder value through
strategic relationships. Additional information concerning Falcon Oil & Gas
Ltd. is available at www.falconoilandgas.com. Investor inquiries may be
directed to investor@falconoilandgas.com.

In the interests of providing Company shareholders and potential investors
with information regarding the Company, including the Company's assessment of
its and its subsidiaries' future plans and operations, certain statements
included in this press release may constitute forward-looking information or
forward looking statements (collectively, "forward-looking statements"). All
statements contained herein that are not clearly historical in nature are
forward-looking, and the words "anticipate," "believe," "expect," "estimate"
and similar expressions are generally intended to identify forward-looking
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include, but are not limited to anticipated developments of the Company's
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and the allocation thereof, pipeline capacity, government royalty rates,
reserve and resources estimates, the level of expenditures for compliance with
environmental regulations, site restoration costs including abandonment and
reclamation costs, exploration plans, acquisition and disposition plans
including farmout plans, net cash flows, geographic expansion and plans for
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reserves and resources described can be profitably produced in the future.
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and timing of capital expenditures, anticipated future debt levels and
incentive fees or revenues or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or performance.
These statements are only predictions. Actual events or results may differ
materially. Although the Company believes that the expectations reflected in
the forward-looking statements are reasonable, it cannot guarantee future
results, levels of activity, performance or achievement since such
expectations are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies. Many
factors could cause the Company's actual results to differ materially from
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disclaim any intent or obligation to update publicly any forward-looking
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term is defined in the policies of the TSX Venture Exchange) accepts
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SOURCE Falcon Oil & Gas Ltd.

Stephen Schultz, Falcon Oil & Gas Ltd., Investor Relations, +1-303-893-1800,
investor@falconoilandgas.com, or Al Palombo, Cameron Associates, Investor
Relations, +1-212-554-5488, al@cameronassoc.com, for Falcon Oil & Gas Ltd.