BUDAPEST, Hungary, Feb. 26 /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd. (TSXV: FO) announces its revised and improved well completion strategy for its Hungarian basin centered gas operations that is designed to achieve more timely and efficient testing and completions for the wells it has drilled in the Mako Trough. Falcon estimates that the improvements to its completion strategy will not increase the costs of Falcon's operations. Since the commencement of Falcon's exploration strategy and drilling program under its Mako Trough Licenses (the "Drilling Program") in December, 2005, up to today, Falcon has reached total depth in five wells and is drilling a sixth well. Falcon's Drilling Program involved conducting a continuous drilling program followed closely by a comprehensive testing program using work-over rigs and/or other testing units available on the open market. However, as a result of the continuing strong demand for such equipment and materials in Europe and globally, and the resulting difficulty in obtaining commitments from service companies for appropriate work-over equipment and materials, Falcon has had to evaluate the impact of such shortages on the Drilling Program and testing operations. In order to minimize further delays, Falcon will immediately begin to utilize, for both drilling and testing purposes, the two Crosco rigs which Falcon has under long term contracts. The Crosco 403 rig is currently drilling the Mako-4 well. Rather than case and suspend the Mako-4 well, Falcon will use the Crosco 403 rig to test the Mako-4 well before moving the Crosco 403 rig to the Foldeak-1 location, where Falcon will conduct drill-test-complete programs. Similarly, the Crosco 801 rig will remain on the Mako-7 well, where to date it has been used for drilling, to commence testing and completion of the Mako-7 well. At completion of the testing operations, or when the CUDD unit can be released from the Mako-6 well and mobilized to the Mako-7 well, Falcon will move the Crosco 801 rig to the Mako-8 location where Falcon will conduct drill-test-complete programs. Falcon will also conduct testing operations on the Mako-6 well, using a CUDD unit which is under a long term contract to Falcon. This CUDD unit will also be available to Falcon for future testing programs as and when required. Falcon currently has a work-over rig on location at the Szekkutas-1 well site. After the current availability, Falcon must relinquish use until approximately mid-April. However, Falcon believes that its work on the Szekkutas-1 well can be completed and the work-over rig mobilized to the Magyarcsanad-1 site for a short-term testing program prior to relinquishing the work-over rig. Falcon will continue the testing of the Mako-4, the Mako-6, the Mako-7 and the Szekkutas-1 wells over the next several weeks, and estimates that information on flow rates resulting from the expected completions on such wells will be available beginning early in the second quarter of 2007. Falcon will continue with its Szolnok development plan, as previously announced. Marc A. Bruner, Chairman and CEO of Falcon commented that, "Our continuous drilling strategy was designed to optimize the evaluation time required for the initial test wells which we've drilled on our 575,000-acre licenses. Due to the equipment shortage, we're now opting to use our exploration rigs for both drilling and testing." Mr. Bruner added, "Falcon will continue aggressively pursuing its Szolnok drilling plan, and will search for a long term solution to its testing objectives that will complement and enhance its continuous drilling strategy." 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 (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) 7559 6710 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, +1-416-303-8810, or Alexander Hubbard-Ford, Corporate Development Europe, +44-79-8448-1541, all of Falcon Oil & Gas Ltd.; or Canada, Brisco Capital Partners Corp., Graeme Dick, +1-403-313-9663, for Falcon Oil & Gas Ltd.; or United Kingdom, 4C-Burvale, Carina Corbett, or John Carrick-Smith, +44-7559-6710, both for Falcon Oil & Gas Ltd. Web site: http://www.falconoilandgas.com/

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