Falcon Engages Merrill Lynch and Moyes & Co. to Begin Search for Strategic Partner in Australia's Beetaloo Basin



    
    With Unrisked Prospective Resource Best Estimates of 19 Billion Barrels of
    Oil and 64 Trillion Cubic Feet of Gas, Size of Prospect Expected to
Attract
    Attention from Majors and Other Global Players(*)




    
    DENVER, Aug. 26 /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 that it has entered into agreements
(collectively, the "Agreements") with Merrill Lynch Pierce Fenner and Smith,
Inc. ("Merrill Lynch") and with Moyes & Co. ("Moyes") under which Merrill
Lynch and Moyes will provide a range of advisory services to Falcon regarding
Falcon's 2009 strategic initiative in Australia.

    In May of 2009 Falcon announced that it had increased its interest in the
seven-million acre Beetaloo Basin prospect under four Exploration Permits in
the Northern Territory of Australia to an undivided 75% working interest and
is now operator under the Permits. For its 2009 Australian initiative, Falcon
will be seeking one or more parties with the financial and/or technical
capabilities to participate in exploration and development activities in the
Beetaloo prospect.  Under the terms of the Agreements, Merrill Lynch's and
Moyes' global energy teams will jointly manage the process of assisting Falcon
in identifying and selecting suitable participants for its Australian
initiatives.

    "On the heels of the recently published Ryder Scott Resource Analysis
Report on the Company's Beetaloo Basin project in the Northern Territory of
Australia, we now begin the process of evaluating and creating an exploration
strategy for this potentially significant play.  We selected the combined
Merrill Lynch and Moyes advisory team because we believe that they have the
expertise, experience, and track record in evaluating major oil and gas
opportunities and facilitating transactions in this part of the world," stated
Marc A. Bruner, President, Chairman and Chief Executive Officer of Falcon. 
Mr. Bruner continued, "With the expert guidance of these advisors, we are
optimistic about entering into transactions with one or more parties that will
add significant value to these assets, similar in nature to the agreement we
signed with ExxonMobil on our Mako Trough prospect in Hungary. This is the
fundamental nature of our strategic business model."

    Sean Mueller, project lead for Merrill Lynch, said, "As the founder of
several companies, including Ultra Petroleum and Pennaco, Marc Bruner is an
unconventional oil and gas industry pioneer who unlocked the potential at
Jonah and Pinedale in the Rocky Mountains.  He and his team have taken that
experience and expertise and expanded internationally to Hungary and now,
Australia.  In the Beetaloo Basin, Marc and his team have developed a very
unique and potentially enormous opportunity for the company, its shareholders,
and for Australia as a whole.  The Merrill Lynch team is looking forward to
assisting in this effort."

    Chris Moyes added, "Considering that we have a contiguous 7-million-acre
property at the door of the Asian market, multiple conventional and
unconventional plays, a very stable, friendly and supportive government agency
in the Northern Territory, and a highly encouraging initial technical
evaluation from Ryder Scott, Moyes & Co. is very excited about the potential
of Falcon's Beetaloo interest and working with Falcon on this project."

    (*)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."

    (*) Falcon's news release, dated August 18, 2009, included 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
    

    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 statements. Similarly, forward-looking statements in
this press release include, but are not limited to anticipated developments of
the Company's various drilling projects 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, or successfully engaging a partner in
any of the Company's endeavours. 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.

    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.
    



    




For further information:

For further information: Marc A. Bruner, Chairman, President & Chief
Executive Officer of Falcon Oil & Gas Ltd., +1-303-893-1800,
investor@falconoilandgas.com; or Investor Relations, Al Palombo,
+1-212-554-5488, al@cameronassoc.com, for Falcon Oil & Gas Ltd. Web Site:
http://www.falconoilandgas.com

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