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Falcon Oil & Gas Ltd. Provides Update on

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Falcon Oil & Gas Ltd. Provides Update on Well Completions
Wednesday October 11, 7:00 am ET

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 www.falconoilandgas.com.

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

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