Ryder Scott Reports Unrisked Prospective Resource Best Estimates of 19 Billion Barrels of Oil and 64 Trillion Cubic Feet of Gas in Australian Beetaloo Basin Property

    Company Moves to Re-enter Basin's Shenandoah 1 Well

    DENVER, Aug. 18 /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 the results of the recently completed Ryder
Scott Company-Canada Resource Analysis Report ("Report") on the Company's
Beetaloo Basin Project in the Northern Territory (NT), of Australia as of July
1, 2009.

    Based on all available data, Ryder Scott has prepared an evaluation of
the hydrocarbon resource potential pertaining to Falcon's interests in the
Beetaloo Basin which consist of four Exploration Permits comprising
approximately 28,200 square kilometres (7 million gross acres), covering the
majority of the Beetaloo Basin and basin margin highs. Through its wholly
owned Australian subsidiary, Falcon Oil & Gas Australia Pty Ltd, the Company
owns an undivided 75 percent working interest in the Permits, and is the
operator of the Permits.

    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

    Ryder Scott evaluates oil and gas properties and independently certifies
petroleum reserve and resource quantities in the U.S., Canada and
internationally. Founded in 1937, Ryder Scott is one of the largest, oldest
and most respected reservoir-evaluation consulting firms in the industry. 
Their resource evaluation of the Beetaloo Basin is as follows:


                 Table 9: Total Undiscovered and Prospective (Recoverable)
                     Oil Resources in the Beetaloo Basin, Australia

                                 Unrisked             Prospective
                                Undiscovered         (Recoverable)
      Reservoir                 Oil-In-Place         Oil Resources
                                   (Bstb)                (Bstb)

    Low     Best   High     Low    Best   High

    Hayfield               0.049   0.088   0.148   0.005  0.010  0.018
    Jamison                8.220  11.920  16.402   0.800  1.337  2.153
     Subtotal              8.269  12.008  16.550   0.805  1.347  2.171
    Upper Kyalla
     Shale Oil             127.4   180.9   256.0    11.3   17.8   27.4
    Shale Oil
     Subtotal              127.4   180.9   256.0    11.3   17.8   27.4
     Total Oil Resource
      Within The Beetaloo
      Basin               135.67  192.91  272.55   12.11  19.15  29.57

                  Table 10: Total Undiscovered and Prospective (Recoverable)
                     Gas Resources in the Beetaloo Basin, Australia

                                    Unrisked            Prospective
                                 Undiscovered          (Recoverable)
      Reservoir                  Gas-In-Place         Gas Resources
                                    (Tscf)                (Tscf)
                            Low    Best    High     Low    Best   High
    Hayfield (Associated
     Solution)             0.013   0.025   0.046   0.002  0.004  0.009
    Jamison (Associated
     Solution)             2.041   3.330   5.349   0.313  0.585  1.066
    Moroak                 0.800   1.437   2.346   0.607  1.048  1.731
    Conventional Subtotal   2.85    4.79    7.74    0.92   1.64   2.81
    Moroak BCGA            21.00   29.61   40.85    3.18   4.85   7.23
    Bessie Creek BCGA      159.4   210.0   275.0    23.8   34.4   49.4
    BCGA Subtotal         180.39  239.58  315.81   27.02  39.28  56.64
    Lower Kyalla
     Shale Gas             12.70   15.80   19.20    1.90   2.60   3.50
    Middle Velkerrie
     Shale Gas              94.6   125.1   160.4    14.2   20.4   29.0
    Shale Gas Subtotal     107.3   140.9   179.6    16.1   23.0   32.5
     Total Gas Resource
      Within The Beetaloo
      Basin               290.54  385.27  503.16   44.05  63.91  91.94

    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

    Commenting on the Report and the status of operations on Shenandoah #1
well, Marc Bruner, President, Chairman, and Chief Executive Officer of Falcon
Oil and Gas, stated, "We are extremely pleased with the general parameters of
the Ryder Scott Report.  As we continue to evaluate our data and test our
theories regarding the potential of significant hydrocarbon deposits that we
believe to be in place in the Beetaloo Basin, the Report helps us to formulate
strategic go-forward plans for the region that are in line with the overall
goals of our organization.   We have entered into a series of service
contracts and commenced operations to re-enter, deepen, and test the
Shenandoah #1 well in the Basin, which was originally drilled in 2007.  With
the combination of our own data analysis, the findings of the Report, and the
shear magnitude and size of our exploration permits, it is likely that we will
seek a partner in this endeavour. The Shenandoah well is the first step in
Falcon taking a careful and structured approach to further exploration and
development of this resource."

    About Ryder Scott

    Ryder Scott evaluates oil and gas properties and independently certifies
petroleum reserves quantities in the U.S. and internationally.  The firm
performs several hundred consulting studies per year for a variety of clients.
The firm has earned worldwide recognition for reliably predicting the
performance of complex oil and gas reservoirs in all major petroleum
provinces. With approximately 90 professional petroleum engineers and
geoscientists, the firm conducts reserve and resource evaluations,
geoscience/geology studies, field development and EOR design, reservoir
simulation, economic analysis, management consulting and expert witness
testimony. The Houston-based firm has branch offices in Calgary and Denver.

    Ryder Scott, by far, is the most widely used consulting firm for
preparing annual petroleum reserves certifications for filers with the U.S.
Securities and Exchange Commission, according to research firm John S. Herold.
Ryder Scott also serves clients listed on the London, Toronto, Hong Kong,
Australian, and other stock exchanges.

    The firm issues reserves certifications considered to be highly reliable
by banks and private investment groups. Major banking institutions establish
reserves-based loan amounts, monitor credit lines and determine guarantees
based on report values. The report also serves as a resource in screening and
due-diligence reviews of acquisitions, divestitures and mergers.
    About Falcon Oil & Gas Ltd.

    Falcon Oil and 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, Romania, 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 and Gas 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. It should be clearly understood that the
resource plays evaluated herein are high risk and that 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. 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 of Cameron
Associates, +1-212-554-5488, al@cameronassoc.com, for Falcon Oil & Gas Ltd.
Web Site: http://www.falconoilandgas.com

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