Falcon Oil & Gas Ltd. announces the closing of its previously announced acquisition of an additional 25% working interest in the Beetaloo Basin project

    (TSXV Symbol: FO)

    DENVER, June 16 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the
"Company") announces that, further to its press release dated May 27, 2009
wherein the Company announced entering into a binding agreement with
PetroHunter Energy Corporation ("PetroHunter") and the second purchase and
sale agreement previously filed on SEDAR, pursuant to which Falcon announced
its intention to acquire (the "Acquisition") an additional undivided 25%
working interest in PetroHunter's four exploration permits covering seven
million acres in the Beetaloo Basin of the Northern Territory, Australia (the
"Beetaloo Basin Project"), that all conditions to closing the Acquisition have
been fulfilled. The Acquisition will bring Falcon's total working interest in
the Beetaloo Basin Project to 75%.
    Under the terms of the Acquisition, the principal consideration being
paid by the Company for this transaction is the exchange of the US$5,000,000
note receivable from PetroHunter. In addition, the Company has agreed to pay
certain vendors who had provided goods or services for the Beetaloo Basin
Project, prior to the Company acquiring its 50% interest in September 2008, in
exchange for inventory and operator bonds of approximately the same value. As
a condition of closing, the Company has become operator of the Beetaloo Basin
Project, and PetroHunter and the Company have entered into an escrow agreement
which governs the release of all remaining common shares in the Company
previously issued to PetroHunter. The Company has also reassigned to
PetroHunter the undivided 25% working interest previously acquired in five
wells, including the 40-acre tract surrounding each well (the "Five Wells") in
PetroHunter's 20,000-acre Buckskin Mesa Project located in the Piceance Basin,
Colorado. The Company has been relieved of all obligations related to the Five
Wells, including reclamation and plugging and abandonment obligations, and has
relinquished its right to the unexpended testing and completion funds
previously advanced for the Buckskin Mesa Project.
    Marc A. Bruner, the Chairman, CEO and President of Falcon, beneficially
holds 35.4% of the issued and outstanding shares of PetroHunter. The
Acquisition was governed by a committee of the independent directors of

    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

    About PetroHunter Energy Corporation

    PetroHunter Energy Corporation, through the operations of its
wholly-owned subsidiaries, PetroHunter Operating Company and Sweetpea
Corporation Pty Ltd., is a global oil and gas exploration and production
company with primary assets consisting of various oil and gas leases and
related interests, including approximately 20,000 net mineral acres in
Colorado and an undivided 25% working interest in four Exploration Permits in
the Northern Territory, Australia, consisting of approximately 7,000,000 net
acres. For more information please visit www.petrohunterenergy.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 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

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Falcon Oil & Gas Ltd.

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