Falcon Oil & Gas Ltd. Provides Operational Update on Mako-6 and Magyarcsanad



    BUDAPEST, Hungary, June 6 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO)
("Falcon" or the "Company") has issued an operational update as part of its
ongoing commitment to public disclosure announcing the following:
    Falcon has resumed testing operations on the Mako-6 well in the lowermost
part of the Basal Conglomerate, after fracture stimulating ("fracing") this
interval in April 2007 with 79,000 pounds of proppant and 3,100 bbls of frac
fluid.  Prior to this current testing operation, the Company opened the well
for flow, had gas flow to surface immediately and, due to the presence of
manageable levels of H2S, the well was shut-in to wait for the correct
equipment to flow the well safely.  The well was then shut-in with frac fluid
load still remaining for over a month.
    The well is currently being tested through perforations from 5,326 to
5,328 meters in the Lower Basal Conglomerate.  The fracced interval being
tested is from 5,279 meters to 5,365 meters, a total of 86 meters; 69 meters
Basal Conglomerate and 17 meters Synrift.  The Basal Conglomerate is 273
meters thick from 5075 meters to 5348 meters. This remaining 204 meters of
Basal Conglomerate will be tested following the completed analysis of results
from current test. The Company is encouraged with the initial gas shows from
this test and believes the gas shows will remain constant or will improve in
the upper part of the Basal Conglomerate where rock quality increases and sand
packages thicken.  Falcon intends to announce details on the gas shows from
this test after flow-back of frac fluid and bottom sediment has been
completed.
    On June 3, 2007, the test was resumed with an 8/64" choke.  Within 8
hours of opening the well and recovering 208 bbls of frac fluid, gas surfaced
in burnable quantities, which are too small to measure.  After flow testing
the well for 29 hours and recovering approximately 800 bbls of the frac fluid,
it was noted that the flow-back was producing greater than expected quantities
of bottom sediment.  On June 4, the well was opened up to a 12/64" choke to
assist in the clean-up. The well continued to produce gas in burnable
quantities through the test separator throughout the day.  On June 5, the well
experienced a partial to complete tubing plug, which temporarily caused the
well to cease flowing.  After three hours of no frac fluid recovery, the well
unloaded large quantities of bottom sediment, resulting in significant
quantities of gas flow in and an 8-foot to 10-foot flare and increased flowing
tubing pressures.  Falcon will continue to flow test the well, recover as much
of the frac load fluid as possible, ensure the tubing and perforations are
free and clear of any obstructions, and, if required, assist the well bore
unloading process via coil tubing-nitrogen.  About two-thirds of the frac load
water has been recovered.
    Preparations to fracture stimulate the Magyarcsanad well are underway.
Falcon is currently rigging up and will commence the well intervention and
testing program in the coming weeks.  Falcon is engineering a two stage frac
that is designed to treat the effective Endrod interval through the existing
perforation at 4,060 meters and introduce 4 sets of new perforations.  The new
perforations will straddle the existing perforations (2 sets above and below).
The combined two stage frac will consist of approximately 350,000 pounds of
proppant.  The treatment is designed to stimulate the entire Endrod formation
that is behind casing with a total effective frac height of nearly 300 meters.
It is anticipated actual testing operation will commence the end of June.

    
    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 and in
Romania through its wholly-owned subsidiary JVX Energy Corporation. Further
information about Falcon is available at http://www.falconoilandgas.com.

    
    Contacts:
    Falcon Oil & Gas Ltd.
    Marc A. Bruner, President, Chairman & CEO

    Weber Shandwick Worldwide
    Peter Duda
    +1 (212) 445-8213
    

    Falcon's discovered resources are not reserves. Only those quantities of
oil and gas that are anticipated to be economically recoverable from
discovered resources are classified as reserves.  Until such time as Falcon's
discovered resources are proven to be reserves, there is a risk that Falcon
may not achieve ongoing operations from which it may generate significant
revenue.
    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 are made as of the date hereof disclaims 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
http://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: Marc A. Bruner, President, Chairman & CEO of 
Falcon Oil & Gas Ltd.; or Peter Duda of Weber Shandwick Worldwide, for Falcon 
Oil & Gas Ltd., +1-212-445-8213 Web Site: http://www.falconoilandgas.com

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