Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd.
(Falcon)

Starting the program Work program for 2021 Beetaloo sub-basin

June 22, 2021 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce the launch of the 2021 work program starting at Kalla 117 N2-1H ST2 (Kyalla 117) In the Betaaloo Basin, Northern Australia, together with our joint venture partner Origin Energy B2 Pty Ltd, a wholly owned subsidiary of Origin Energy Limited (Origin).

Kya’s 117 on-site operations have begun, the rigging has now been completed and cleaning operations have continued. If these actions are successful, the result will be an extended production test (EPT) is performed to determine the expected long-term performance of the well.

Further information on the 2021 work program, including the proposed action at Velkerri 76 and Amungee NW 1H, is provided below.

Kyalla 117

Kyalla Shale Play Summary

• Liquid rich gas identified only from the surface area of ​​the joint venture.
• Material game fairway> 3000 km² with multiple TCF potentials.
• Rich liquids have two potential stacked objects in the gas window and one in the oil window.

Results so far

• As reported on January 19, 2021, Origin submitted a discovery notice and an initial report of the discovery to the Northern Regional Government.
• Unassisted gas flow rates ranging from 0.4 to 0.6 MMscf / d were recorded over seventeen hours, which are preliminary indications of well performance, and EPT is required to determine the long-term performance of the Kya 117.

Velkerri 76

Velkerri Shale Play Summary

• Beetalo’s biggest fairway with four possible stacked goals.
• Mainly dry gas with OGIP> 500+ TCF.
• Liquid gas pathways on the sides of the basin with many TCF potentials.
• Several successful tests in a dry gas window (Amungee NW 1H, Tanumbrini1, Shenandoah 1A).

The work program for 2021 includes:

• By targeting Velkerri play on the southeast shore of the Beetaloo subdivision, which is projected to be in a gas window containing liquids.
• Drill a vertical pilot well to obtain the core, run logs, and run diagnostic fracture injection test data across the Velker.

Amungee NW 1H

Results so far

• On December 22, 2016, Falcon reported that after the 57-day EPT of the well, production averaged 1.10 MMscf / d.
• On February 15, 2017, Falcon announced that Origin had provided the Northern Regional Government with the results of an evaluation of the discovery and preliminary assessment of the oil used in the Amungee NW-1H Velkerri B shale gas cartridges, with gross assets of 6.6 TCF, 1.46 TCF network for Falcon.

The work program for 2021 includes:

• Extended production test and production log to confirm the regional share, i.e. to determine if all Frack phases affected the original EPT in 2016.

Philip OQuigley (CEO of Falcon) commented:
Starting operations at Kyalla 117 is an exciting first step for the planned 2021 work program, which will cover three plays by Beetalo and provide key information to help determine the future evaluation and development program. We look forward to receiving the results as soon as they become available.

Ends.

CONTACT INFORMATION:

This announcement has been reviewed by Dr.Gbor Bada, Technical Operations Manager, Falcon Oil & Gas Ltd. Dr. Bada holds a degree in geology from Etvs L. University in Budapest, Hungary and a doctorate from Vrije University in Amsterdam in the Netherlands. He is a member of the AAPG.

About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil and gas company exploring and developing unconventional oil and gas reserves, and the current portfolio is concentrated in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is based in British Columbia, Canada and is headquartered in Dublin, Ireland, with a technical team in Budapest, Hungary.

Falcon Oil & Gas Australia Limited is a wholly owned subsidiary of Falcon Oil & Gas Australia Limited and Origin Energy Limited (ASX: ORG), a 98% subsidiary of Falcon Oil & Gas Ltd (Origin) are joint venture partners of the Beetaloo project.

More information about Falcon Oil & Gas Ltd can be found at www.falconoilandgas.com

About the origin
Origin is a leading Australian integrated energy company. Origin is a leading energy retailer with approximately 4.2 million customer accounts, approximately 7,500 MW of owner and contracted electricity generation capacity and is also a major supplier of natural gas. Origin is the upstream operator of the Australian Pacific LNG production chain, supplying natural gas to the domestic market and exporting LNG under long-term contracts.

www.originenergy.com.au

Glossary of terms

Advice on forward – looking statements

Certain information in this press release may be forward-looking. The statements contained in this release, which are not statements of historical facts, may be considered forward-looking statements. Forward-looking information typically includes statements in words such as can, should, should, wait, plan, plan, anticipate, believe, evaluate, projects, dependent, potential, planned, forecast, outlook, budget, hope, support, or negative these terms or similar words refer to future results. In particular, the forward-looking information in this press release includes, but is not limited to, information on the 2021 work program, Amungee NW-1H Velkerri B shale conditional resource assessment, type comments, number of wells to be drilled in the Betaaloo sub-basin in Australia, schedule, stimulation, testing and objectives, the future of the Central Velkerri and Kyalla plays, and the possibility of commercializing the exploration program. This information is based on current expectations with significant risks and uncertainties that are difficult to predict. Risks, assumptions and other factors that may affect actual results include those related to fluctuations in shale gas market prices; risks related to the exploration, development and production of shale gas reserves; general economic, market and business conditions; significant capital requirements; uncertainties related to the estimation of provisions and resources; the extent and cost of compliance with state laws and regulations and the effects of changes in laws and regulations; the need to obtain regulatory approvals before development begins, the environmental risks and dangers and the costs of complying with environmental regulations; original claims; inherent risks and hazards to operations such as mechanical or pipe failure, crater and other hazardous conditions; possible cost overruns, well drilling is speculative and often involves significant costs that may be higher than estimated and should not lead to observations; exchange rate fluctuations; competition for capital, equipment, new leases, pipeline capacity and skilled personnel; the holder of the licenses, leases and permits does not comply with these requirements; changes in royalty systems; failure to accurately estimate the cost of abandonment and rehabilitation; incorrect estimates and assumptions by management and their joint venture partners about the effectiveness of internal control; possible lack of available drilling equipment; failure to acquire or retain key personnel; title deficiencies; geopolitical risks; and litigation risk.

Readers are cautioned that the above list of important factors is not exhaustive and that these factors and risks are difficult to predict. Actual results may differ materially from those proposed in forward-looking statements. Falcon does not undertake any obligation to update forward-looking statements or to update the reasons why actual results may differ from those set out in forward-looking statements, unless required by the securities laws applicable to Falcon. Further information on identifying risks and uncertainties can be found in Falcons applications to the Canadian Securities and Exchange Commission, available at www.sedar.com, including in the “Risk factors” section of the annual information sheet.

Aadvisery oil and gas data

All references in this newsletter to initial production volumes are useful to confirm the presence of hydrocarbons; however, such velocities do not dictate the number of velocities at which such wells continue production and decline thereafter, and do not necessarily indicate long-term performance or ultimate recovery. In encouraging readers, they are advised not to resort to such interest rates when calculating Falcon’s total output. Such prices are based on field forecasts and may be based on the limited information currently available.

Conditional resource estimates are those quantities of gas (produced gas minus CO2 and inert gases) that are potentially recoverable from known accumulations but are not yet considered commercially exploitable due to additional constraint drilling, further confirmation of supply, and confirmation of prices and development costs for the original gas. There is uncertainty that any part of the resources will be commercially viable. For more information on conditional resource forecasts for the Amungee NW-1H Velkerri B shale gas pool, which were completed on February 15, 2017, see Falcons Annual Data Form dated April 26, 2021, available on the SEDAR website. at www.sedar.com.

Neither the TSX Venture Exchange nor its regulatory service provider (as the term is defined in the TSX Venture Exchange policies) is responsible for the adequacy or accuracy of this publication.