Falcon Oil & Gas Ltd-Hungary Drilling Update

Falcon Oil & Gas Ltd-Hungary Drilling Update 
DUBLIN, IRELAND -- (Marketwired) -- 07/23/13 -- Falcon Oil & Gas Ltd.
(TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) ("Falcon" or the "Company"), is
pleased to announce that initial drilling operations on the
Kutvolgy-1 well have ceased, the well having reached total depth
("TD") of 3,305 metres. 
Kutvolgy-1 is the first of a planned three well programme to evaluate
the gas potential of the Algyo formation in the Mako Trough. As
prognosed, the top of the Algyo formation was encountered at 2,985
metres; the well then penetrating an alternating sequence of
sandstones, siltstones and shales over a gross interval of 320 metres
to TD, with gas shows throughout. Two conventional cores have been
taken and extensive wireline logs were run. As planned the well has
been cased to TD and is now suspended while further technical
evaluation is undertaken prior to carrying out an appropriate rigless
testing programme later this year. No operational problems or
accidents occurred during drilling.  
The location of the second of the three well programme will be
decided after a full evaluation of the Kutvolgy-1 well results.
Operations on the second well are expected to commence in Q4 this
In accordance with the terms of the agreement with NIS, announced on
14 January 2013, Falcon is fully carried, as all costs associated
with this three well drilling program are funded by NIS. Any
hydrocarbon sales revenue resulting from this program will be shared
equally between Falcon and NIS. 
Philip O'Quigley, CEO of Falcon commented:  
"We are pleased to confirm that our well successfully reached its
target Algyo formation and encountered hydrocarbons, and thanks to
the close collaboration with NIS, drilling was completed without any
operational difficulties. I am looking forward to the technical
evaluation of the well results and then the testing programme that
will take place during Q4 2013."  
This announcement has been reviewed by Dr. Gabor Bada, Falcon's Head
of Technical Operations. Dr. Bada obtained his geology degree at the
Eotvos L. University in Budapest, Hungary and his PhD at the Vrije
Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG, EAGE
and SPE. Definitions in this press release are consistent with SPE
About the Algyo  
The Algyo is a relatively shallow play between 2,300m and 3,500m. A
number of Falcon wells have been drilled through the Algyo in recent
years, some of which encountered gas shows, but to date no well has
ever tested the play concept at an optimal location as previous wells
targeted deeper intervals of up to 6,000m.  
Multiple Algyo prospects have subsequently been identified by Falcon
through extensive AVO analysis. The ongoing exploration drilling
program with NIS is targeting three separate high-graded prospects. 
A recent independent study by RPS Energy (January 2013) included for
the first time Prospective Resource recoverable volumes attributable
to the shallow Algyo Play. According to the RPS report, eight of the
ten prospects identified by Falcon contain 568 BCF of prospective
recoverable gas resources, each with a 10% Geological Probability of
Success ("GPoS"). 
About Falcon Oil & Gas Ltd.  
Falcon is an international oil & gas company engaged in the
acquisition, exploration and development of conventional and
unconventional oil and gas assets, with the current portfolio spread
between Australia, South Africa and Hungary. Falcon is incorporated
in British Columbia, Canada and headquartered in Dublin, Ireland with
a technical team based in Budapest, Hungary. 
For further information on Falcon Oil & Gas Ltd. please visit
NIS is one of the largest, vertically integrated oil and gas
companies in Southeast Europe, focusing on exploration and production
of hydrocarbons, refining of crude oil and sales of a broad range of
petroleum products.  
For further information on NIS please visit www.nis.rs. 
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.  
Certain information in this press release may constitute
forward-looking information. This information is based on current
expectations that are subject to significant risks and uncertainties
that are difficult to predict. Actual results might differ materially
from results suggested in any forward-looking statements. Falcon
assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those
reflected in the forward looking-statements unless and until required
by securities laws applicable to Falcon. Additional information
identifying risks and uncertainties is contained in Falcon's filings
with the Canadian securities regulators, which filings are available
at www.sedar.com.
Falcon Oil & Gas Ltd.
+353 1 417 1900 
Falcon Oil and Gas Ltd.
Philip O'Quigley
+353 87 814 7042
FTI Consulting
Billy Clegg
+44 207 269 7157 
FTI Consulting
Edward Westropp
+44 207 269 7230 
FTI Consulting
Natalia Erikssen
+44 207 269 9348 
Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell
+353 1 679 6363 
GMP Securities Europe LLP (Joint Broker)
Rob Collins / Alexandra Carse
+44 20 7647 2800 
Cantor Fitzgerald Europe (Joint Broker)
Stewart Dickson / Richard Redmayne / Julian Erleigh
+44 207 894 7000
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