Falcon Oil & Gas Ltd. Completes $40,000,000 Equity Financing



    BUDAPEST, Hungary, Dec. 17 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO)
("Falcon" or the "Company") is pleased to announce that it has completed today
its previously announced public offering (the "Offering") of 100,000,000
common shares in the capital of the Company (the "Common Shares") at $0.40 per
Common Share (the "Issue Price") for aggregate gross proceeds of $40,000,000.
    The Offering was completed by a syndicate of underwriters led by
Macquarie Capital Markets Canada Ltd., which included Evergreen Capital
Partners Inc. (collectively, the "Underwriters").
    The Company intends to use the net proceeds from the Offering for
completion and testing of three of its existing wells (Mako-4, Mako-6, and
Mako-7), which the Company previously drilled in the Mako Trough on its
licenses in Hungary, and for general working capital purposes.
    In connection with the Offering, the Company also granted the
Underwriters an over-allotment option, exercisable in whole or in part in the
sole discretion of the Underwriters at any time until January 17, 2008, to
arrange for the sale of up to an additional 15,000,000 Common Shares at the
Issue Price to cover over-allotments, if any, and for market stabilization
purposes.
    The Common Shares have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "1933 Act"), and may not
be offered or sold in the United States or to U.S. Persons (as defined in
Regulation S under the 1933 Act) except in accordance with an exemption from
the registration requirements of the 1933 Act and applicable state securities
laws.  This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
    
    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 Oil and Gas Exploration, LLC,
and in Romania through its wholly-owned subsidiary JVX Energy Corporation.
Further information about Falcon is available at www.falconoilandgas.com.

    
    Investor and Public Relations
    Falcon Oil and Gas Ltd:
    Alexander Hubbard-Ford
    +44 (0) 79 8448 1541
    

    
    Investor Relations North America:
    Weber Shandwick
    Peter Duda / JJ Rissi
    +1 (212) 445-8213 / +1 (917) 587-7090
    
    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.




For further information:

For further information: Investor and Public Relations: Alexander 
Hubbard-Ford for Falcon Oil and Gas Ltd, +44-0-79-8448-1541; or Investor 
Relations North America: Weber Shandwick, Peter Duda, +1-212-445-8213, or JJ 
Rissi, +1-917-587-7090 Web Site: http://www.falconoilandgas.com

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