BUDAPEST, Hungary, Sept. 25 /PRNewswire-FirstCall/ -- Falcon Oil and Gas Ltd. (TSXV: FO) announced today that it has received a new independent report (the "Scotia Report") disclosing a resource estimate of the Mako Trough Pannonian Basin Gas Accumulation (the "Mako Trough"), Falcon's deep gas exploration project in southeastern Hungary. The Scotia Report is compliant with National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" ("NI 51-101"). The Scotia Group, Inc. (the "Scotia Group") of Dallas, Texas was commissioned by Falcon to independently describe and quantify the resource of the Mako Trough using all data available as of an effective date of August 15, 2006. The Scotia Group report is limited to an estimation of the possible range of hydrocarbon volume that theoretically may be produced and does not include any economic modeling or valuation of the resources. The Scotia Report focuses on Basin Centered Gas Accumulation ("BCGA") unconventional resources, and does not address any oil or gas resources that may occur in associated conventional or unconventional reservoirs outside of the BCGA. The Scotia Report on the resource of the Mako Trough describes a probabilistic distribution of the potentially recoverable portion of "Contingent Resources" as defined by the Canadian Oil and Gas Evaluation Handbook (COGEH) and does not represent an estimate of reserves. Based on all available data, the Scotia Group has assigned the following probabilistic estimation of potentially recoverable Contingent Resources to the Falcon interests in the Szolnok formation, the Lower Endrod, the Basal Conglomerate and the Synrift Sequence. The Scotia Report measures the Mako Trough in trillions of cubic feet (Tcf): Probability Greater Than P90 (90%) P50 (50%) P10 (10%) Contingent Resource(1)(2) - (estimated recoverable 21.8 Tcf 54.9 Tcf 116.1 Tcf portion) Notes: (1) The resource estimate has been conducted using the definitions specified by the Canadian Oil and Gas Evaluation Handbook. The Mako Trough Resource falls under the "Discovered Resources" classification. The values refer to the probabilistically estimated recoverable fraction of "Contingent Resources" within that classification. Contingent resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations but are not currently economic. The economic nature of this resource has not yet been assessed due to the early stage of data gathering for the Mako Trough resource. The recoverable portion of this "Contingent Resource" is contingent upon the demonstration of productive capability of the various zones of interest through well testing and longer term production testing which has not occurred as of the effective date of the report. (2) Estimates are as at August 15, 2006, the effective date of the Scotia Report. "The Scotia Group is an international oil and gas advisory service organization that has significant expertise and experience in evaluating unconventional gas resources throughout the world, including recent studies assessing unconventional gas resources for a major, multi-national exploration and production company," said Marc A. Bruner, Chairman and CEO of Falcon Oil & Gas Ltd. "We are pleased to have their expert assessment of resources located in the Mako Trough." A copy of the Scotia Report is available at http://www.sedar.com/. About The Scotia Group Founded in 1981, The Scotia Group is an independent firm providing advisory services to the oil and gas industry. The firm specializes in technical and economic analysis of projects, properties and companies, providing clients with traditional consulting services and strategic advice. The Scotia Group has offices in Dallas, Houston, and Reynosa, Mexico, and maintains professional associations with a number of respected domestic and international firms. The Scotia Group's clients include banks, financial institutions, the legal community, government agencies, and major and independent international energy organizations including ChevronTexaco, EnCana, Petrobras, Repsol Exploration, Pemex Exploracion y Produccion, Woodside Petroleum and the U.S. Department of Energy. About Falcon Oil & Gas Ltd. Falcon Oil & Gas Ltd. is a British Columbia corporation which is 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, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at http://www.falconoilandgas.com/. Contacts: Falcon Oil & Gas Ltd. Marc A. Bruner, President, Chairman & CEO Michael K. Lam, Corporate Development, North America (416) 303-8810 Alexander Hubbard-Ford, Corporate Development Europe +44 (0) 79 8448 1541 Canada -- Brisco Capital Partners Corp. Graeme Dick 403-313-9663 United Kingdom - 4C-Burvale Carina Corbett John Carrick-Smith +44 (0) 20 7907 4761/0 Falcon's discovered resources are not reserves. Only those quantities of oil and gas that are anticipated to be economically recoverable from discovered resources are classified as reserves. Until such time as Falcon's discovered resources are proven to be reserves, there is a risk that Falcon may not achieve ongoing operations from which it may generate significant revenue. There is no certainty that it will be technically or economically viable to produce any portion of the reported Contingent Resource. 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 http://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. DATASOURCE: Falcon Oil and Gas Ltd. CONTACT: Marc A. Bruner, President, Chairman & CEO, or Michael K. Lam, Corporate Development, North America, +1-416-303-8810, or Alexander Hubbard-Ford, Corporate Development Europe, +44 (0) 79 8448 1541, all of Falcon Oil & Gas Ltd.; or Graeme Dick of Brisco Capital Partners Corp, +1-403-313-9663; or United Kingdom, Carina Corbett or John Carrick-Smith of 4C Burvale, +44 (0) 20 7907 4761/0, all for Falcon Oil and Gas Ltd. Web site: http://www.falconoilandgas.com/

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