Falcon Oil & Gas Ltd. announces it will not exercise Buckskin Option

    (TSXV Symbol: FO)

    DENVER, CO, Feb. 24 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or
the "Company") today announces that it has elected not to exercise its option
to acquire a 50% working interest in PetroHunter Energy Corporation's
("PetroHunter") 20,000 acre Buckskin Mesa project ("Buckskin Mesa Project")
located in the Piceance Basin, Colorado, under the Purchase and Sale Agreement
entered in August 2008 between Falcon and PetroHunter previously filed on
    As initially disclosed in its press release dated August 25, 2008, Falcon
acquired a 25% interest in five wells in the 20,000 acre Buckskin Mesa Project
(the "Five Wells") for consideration of US$7 million, and had an option (the
"Option") to acquire an additional 50% working interest (37.5% net revenue
interest) in the entire Buckskin Mesa Project, including the Five Wells.
Falcon will retain its 25% interest in the Five Wells.
    Exercise of the Option would have required Falcon to pay additional
consideration of US$25 million in cash or securities convertible into Falcon
common shares, or a combination thereof, and incur spending commitments of
US$18 million pursuant to a drilling and development program.
    Falcon and PetroHunter continue to develop the 2009 work program for the
jointly held 7 million acre prospect in Northern Territory, Australia (the
"Beetaloo Basin"). The 28,888,888 common shares of Falcon issued to
PetroHunter for Falcon's 50% interest in Beetaloo remain subject to the
contractual agreements between the companies as previously disclosed; whereby
14,500,000 shares are pledged by PetroHunter to Falcon as collateral for
Falcon's US$5.0 million loan to PetroHunter, 11,600,000 shares are available
to PetroHunter to pledge as collateral for loans from third parties, leaving
2,788,888 available for sale by PetroHunter.
    Marc A. Bruner, President, Chairman and CEO of Falcon stated that
"results from the initial testing of the Five Wells did not warrant Falcon's
exercising of the option under its existing terms and conditions given the
present economic climate."

    About Falcon Oil & Gas Ltd.

    Falcon Oil & Gas Ltd. is a British Columbia corporation 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, in
Romania through its wholly owned subsidiary JVX Energy Corporation, in
Colorado through its wholly owned subsidiary Falcon Oil & Gas USA, Inc., and
in Australia through its wholly owned subsidiary Falcon Oil & Gas Australia
Pty Ltd. Further information about Falcon is available at

    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 Relations, Falcon Oil & Gas Ltd: North
America: Brad Long, Toll Free (888) 541-3624, Direct (360) 332-9821,
blong@falconoilandgas.com; Europe: Alexander Hubbard-Ford, Phone + 44 (0) 20
79351543, Mobile + 44 (0) 7984481541, investor@falconoilandgas.com; Falcon Oil
& Gas Ltd.: Marc Bruner, CEO, 1875 Lawrence Street, Suite 1400, Denver,
Colorado, 80202, USA, Phone (303) 893-1800, Fax (303) 572-8927

Organization Profile

Falcon Oil & Gas Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890