Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd.

September 16, 2011 08:39 ET

Falcon Oil & Gas Ltd. Announces Start of Rig Operations at Shenandoah #1

DENVER, COLORADO--(Marketwire - Sept. 16, 2011) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO) announced today that its majority-owned subsidiary, Falcon Oil & Gas Australia Limited (Falcon Australia) has commenced operations at the Shenandoah #1 wellsite in the Beetaloo Basin, Northern Territories, Australia.

Operations had been delayed on account of unusually heavy rainfall in the area during the recently-ended wet season. The resultant flooding required the building up of the access road in to the area plus further construction at the wellsite. This allowed a drilling rig to move on to location last week. Rig-up operations and safety checks have been completed and the well was re-entered on 14 September and is currently drilling out the six cement plugs in the wellbore.

The rig will run and cement a 4.5 inch casing string to total depth at 2,714 metres. It will then move away allowing the Halliburton stimulation equipment on-site for testing operations. A total of five intervals are planned to be tested; two in the Velkerri shales, two in the Moroak sandstones and one in the Lower Kyalla shales. The intervals are prospective for gas, and while high flowrates are not expected from this vertical well, hydrocarbons produced to surface will direct the future placement of horizontal wells for the purpose of testing commerciality. The full test sequence is expected to be concluded around the end of November, 2011.

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 unconventional and conventional oil and gas exploration and production and holds interests in prospective properties in Australia, Hungary, and South Africa.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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