Falcon Oil & Gas Ltd. Enters Into Production and Development Agreement With ExxonMobil...

Falcon Oil & Gas Ltd. Enters Into Production and Development Agreement With
ExxonMobil on Falcon's Project in Hungary

DENVER, April 10 /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd.
(TSXV: FO, "Falcon") announced today that it and its wholly owned subsidiary,
TXM Exploration and Production LLC, have entered into a Production and
Development Agreement with Exxon Mobil Corporation affiliate Esso Exploration
International Limited (ExxonMobil) under which Falcon and ExxonMobil will
become joint owners in a specified portion (the "Contract Area") of Falcon's
long-term production license (the "Production License") in the Mako Trough,
Hungary. ExxonMobil will operate the Contract Area.
(Photo: http://www.newscom.com/cgi-bin/prnh/20080410/NYTH137 )
The Contract Area consists of approximately 184,300 acres, or 75% of
Falcon's 246,000-acre Production License. The Contract Area will be owned
jointly, with Falcon owning a 33% undivided working interest and ExxonMobil
owning a 67% undivided working interest. The Agreement is effective today.
Falcon's Chairman and CEO, Marc A. Bruner, stated, "This agreement is a
milestone in Falcon's history and is the culmination of Falcon's extensive
efforts, announced on June 27, 2007, to find a strategic partner to support
and enhance Falcon's exploration and development efforts on Falcon's long-term
Production License. We are very pleased that we were able to reach agreement
with ExxonMobil, a company which brings to the table all the financial,
technical and operating expertise necessary to pursue the completions, testing
and evaluation of this resource, and then to maximize value if we are able to
commercialize this opportunity."
The Agreement provides for an initial consideration of US$25 million to
Falcon and for ExxonMobil to spend US$50 million to conduct an Initial Work
Program to test one or more of Falcon's existing wellbores or drill one or
more new wells for such tests. Field operations under the Initial Work
Program are scheduled to commence this year. After the Initial Work Program
is completed and if ExxonMobil elects to proceed to the next phase (the
"Appraisal Work Program"), it will pay Falcon an additional US$50 million and
will expend US$100 million on the Appraisal Work Program. If ExxonMobil
elects not to proceed beyond the Initial Work Program, it will relinquish and
reassign to Falcon all of ExxonMobil's interest in the Contract Area. After
the Appraisal Work Program is completed, ExxonMobil will pay Falcon an
additional US$75 million if it elects to proceed to the next phase (the
"Development Program") or it will reassign its interest to Falcon, subject to
the terms of the Agreement.
Falcon will incur no development costs within the Contract Area for
ExxonMobil's commitments during the Initial Work Program or the Appraisal Work
Program. Beginning with the Development Program, Falcon and ExxonMobil would
each receive revenues and be responsible for its proportionate share of
expenses within the Contract Area (that is, 33% Falcon and 67% ExxonMobil),
under a joint operating agreement.
ExxonMobil has the right to assign half its interest to MOL, a publicly
traded Hungarian oil and gas company.
In addition to Falcon's 33% undivided ownership in the ExxonMobil-operated
Contract Area, Falcon will remain sole owner and operator of 391,445 acres
outside the Contract Area boundaries, as well as shallow rights covering
184,336 acres within the Contract Area, as follows:
-- Falcon Lands: Falcon retains 100% ownership in the remaining 25%
(61,445 acres) of the Production License that is not part of the
Contract Area.

-- Exploration Licenses: Falcon retains 100% ownership in 330,000 acres
which are outside the boundaries of the Production License, under the
original Mako Exploration License and original Tisza Exploration
License. Falcon also retains 100% ownership in the portions of the
Exploration Licenses which are above 2,800 meters within the boundaries
of the Production License. The 330,000-acre area outside the
Production License, and the shallower depths are not part of the
Production License.

The Contract Area, Falcon Lands, and Exploration Licenses are shown on the
attached map.
Regarding Falcon's retained acreage, Mr. Bruner stated, "We see
significant upside potential within the large portion of the Mako Trough where
Falcon still owns 100%, and we intend to continue to evaluate and pursue
opportunities simultaneously with ExxonMobil's operations."
BMO Capital Markets has acted as exclusive financial advisor to Falcon
with respect to the Transaction.
Falcon to Host Investor Conference Call
Falcon will host an investor conference call beginning at 9:00 a.m.
(Eastern Time), Friday, April 11, 2008. The conference call will be available
live via telephone. To participate in the conference call within the U.S. and
Canada, dial (866) 688-0039. To participate in the conference internationally,
dial +1 (706) 679-3130. The conference code is 43449303. The conference call
will also be broadcast live on the Internet and may be accessed at
www.falconoilandgas.com.
The conference call will be available for replay via telephone beginning
approximately two hours following the conclusion of the live call. To listen
to a replay of the conference within the U.S. and Canada, dial (800) 642-1687
or internationally +1 (706) 645-9291. The replay code is 43449303.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the
business of oil and gas exploration and production. It has operations in
Hungary through its wholly-owned subsidiary TXM Exploration and Production,
LLC, and in Romania through its wholly-owned subsidiary JVX Energy
Corporation. Further information about Falcon is available at
www.falconoilandgas.com.
For information about ExxonMobil, please go to ExxonMobil.com.

Falcon Oil and Gas Ltd. Investor and Public Relations:
Alexander Hubbard-Ford
+1 303-983-1800

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
statements. Similarly, forward-looking statements in this press release
include, but are not limited to anticipated developments of the Company's
drilling project in Hungary and the timing thereof, the Company's drilling
project in Romania and the timing thereof, capital investment levels 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
seismic surveys. In addition, please note that statements relating to
"reserves" or "resources" are deemed to be forward-looking statements, as they
involve the implied assessment, based on certain estimates and assumptions,
that the reserves and resources described can be profitably produced in the
future. Such statements represent the Company's internal projections,
estimates or beliefs concerning, among other things, an outlook on the
estimated amounts 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
those expressed or implied in any forward-looking statements made by, or on
behalf of, the Company and the foregoing list of important factors is not
exhaustive. These forward-looking statements made as of the date hereof
disclaim any intent or obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or results
or otherwise. Company shareholders and potential investors should carefully
consider the information contained in the Company's filings with Canadian
securities administrators at www.sedar.com before making investment decisions
with regard to the Company.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE Falcon Oil & Gas Ltd.

Alexander Hubbard-Ford, Falcon Oil and Gas Ltd. Investor and Public Relations,
+1-303-983-1800