Falcon Oil & Gas Ltd.

Update on Amungee NW-1H Horizontal Well and Spudding of Beetaloo W-1 Vertical Well

DUBLIN, IRELAND--(Marketwired - July 25, 2016) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is pleased to announce the successful re-entry and casing of Amungee NW-1H horizontal well and the spudding of the Beetaloo W-1 vertical well in the Beetaloo Basin, Australia.

Amungee NW-1H

The Amungee NW-1H well was drilled to a total measured depth of 3,808 metres last November, including a 1,100 metres horizontal section in the "B Shale" interval of the Middle Velkerri formation. The horizontal section was successfully cased and cemented earlier this month and preparations are now being finalised to conduct a multi-stage hydraulic stimulation. The hydraulic stimulation is expected to commence around mid-August and will involve up to 10 stages and will take up to 2 weeks to complete. This will then be followed by an extended production testing program.

Beetaloo W-1

The Beetaloo W-1 well is the fourth of Falcon's fully carried five well 2015-2016 drilling and evaluation programme, the initial phase of a nine well drilling and evaluation programme.

• This well, targeting the unexplored southern Beetaloo Basin for shale and hybrid shale-sand plays in the Velkerri and Kyalla formations, was spudded on 22 July 2016.
• The well is designed to test the presence, depth, thickness and physical reservoir properties of the organic rich mudstones of the Kyalla Formation and the Middle Velkerri member.
• The well is located approximately 85 kilometres south of the first well drilled, Kalala S-1; within exploration permit 117 with drilling estimated to be to a total depth of 3,045 meters.
• Rig 185, an ATS 400 originally commissioned for the drilling of Kalala S-1, Amungee NW-1 and Amungee NW-1H from Saxon Energy Services Australia Pty. Ltd, is being used.
• Drilling is estimated to take between 35 - 50 days.
• The drilling of Beetaloo W-1 will be operated by Origin Resources Limited ("Origin") (35%) with partners Sasol Petroleum Australia Limited ("Sasol") (35%) and Falcon (30%).

Philip O'Quigley, CEO of Falcon commented:

"The multi-stage hydraulic stimulation of the horizontal section of the Amungee NW-1H well, scheduled to be completed next month, could go a long way towards proving up the resource potential of the Beetaloo Basin.

The Beetaloo W-1 well represents another exciting phase of the exploration program given that it will be the first well to penetrate the Middle Velkerri member in the south of the basin.