Falcon Oil & Gas Ltd. Provides Update on Well Completions

BUDAPEST, Hungary, Oct. 11  /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd. (TSXV: FO) provided an update on its oil and gas exploration activities in Hungary.

Well Completion Schedule

Falcon has entered into two separate contracts with well service suppliers for equipment to secure a hydraulic work-over rig ("HWO") and a frac crew, as a necessary part of its completion process on three wells (the Mako-6, Pusztaszer-1, and Szukketas-1).  The HWO rig, which was not available until recently, and the frac crew are scheduled to arrive on location by November 30, 2006, when fracing and stimulation on the Mako-6 is anticipated to begin.  The rig is capable of handling the high pressures and hook loads of the deep wells.  Further, the HWO auxiliary equipment provided by the HWO contractor is capable of handling high pressure pumping.  Falcon also plans to use the HWO rig (as well as other rigs) on its shallow wells to provide desired safety margins during completion operations on those wells.

Falcon Chairman, Marc Bruner, stated, "With the HWO rig's significant capabilities, Falcon believes that this rig optimizes safety and performance, and that these contracts represent an important step toward completing these wells."

Falcon plans to perform multiple fracs on these three Mako Trough wells, with the number varying from well to well.  Fracing and stimulation activities will start at the lowest interval and move up sequentially in order to fully evaluate each prospective interval.  As at the date hereof, Falcon's internal geological review has identified the following number of prospective intervals:

  Pusztaszer-1 well      4
  Szukketas-1 well      13
  Mako-6 well           49



The number of prospective intervals is subject to change during fracing and stimulation activities.  Falcon plans to move the frac equipment between wells during testing, thereby allowing operations to take place on all wells concurrently.  Falcon believes that the fracing and testing of any one of its wells could take approximately three months, depending on conditions encountered within each well during the process.  Each potential interval in each well will need to be perforated, tested, evaluated for fracing, fraced and then tested again.  Falcon will announce test results from time to time during this process.

Gas Gathering Infrastructure

In order to decrease or eliminate flaring of gas at the Mako-6 well (if production is achieved), Falcon plans to enter into one or more contracts to transport gas via a gathering line from the Mako-6 well to an existing natural gas pipeline approximately 11 kilometers from the Mako-6 well.  The existing pipeline is connected to a gas processing plant.  Falcon is engaged in negotiations to acquire the necessary rights-of-way for the gathering line. Assuming the rights-of-way and related contracts are obtained, construction of such a gathering line and related facilities is expected to be completed by year-end.  Once operational, this gathering line will also accommodate future natural gas production from the Mako-7 well, if testing is successful on that well.

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, LLC, 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
  [phone]
  Alexander Hubbard-Ford, Corporate Development Europe
  [phone]

  Canada - Brisco Capital Partners Corp.
  Graeme Dick [phone]

  United Kingdom - 4C-Burvale
  Carina Corbett
  John Carrick-Smith
  [phone]/0



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 & Gas Ltd.



CONTACT:  Marc A. Bruner, President, Chairman & CEO or Michael K. Lam,

Corporate Development North America, [phone], or Alexander

Hubbard-Ford, Corporate Development Europe, [phone], all of

Falcon Oil & Gas Ltd.; or Canada, Graeme Dick of Brisco Capital Partners

Corp., [phone], for Falcon Oil & Gas Ltd.; or United Kingdom, Carina

Corbett or John Carrick-Smith, both of 4C-Burvale, [phone]/0, for

Falcon Oil & Gas Ltd.



Web site:  http://www.falconoilandgas.com/ 

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