While the Tools pretending to be in a state of flux over Falcon's valuation...

We the 13,455 long-term Falcon shareholders, along with Burlingame, Soliter, Sweetpea and Persistency pleased to announce the spudding of the Amungee NW-1 well in the Beetaloo Basin, Australia. Amungee NW-1 is the second of Falcon’s fully carried 2015 three well drilling and evaluation programme, the initial phase of a nine well drilling and evaluation programme.

Highlights:

·Amungee NW-1 is targeting the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality.

·The well is located approximately 25 kilometres east of the first well drilled, Kalala S-1, within exploration permit 98 with drilling estimated to be to a total depth of 2,700 meters.

·Rig 185, an ATS 400 originally commissioned for the drilling of Kalala S-1 from Saxon Energy Services Australia Pty. Ltd, will be used.

·Drilling is estimated to take between 35 and 50 days.

·The drilling of Amungee NW-1 will be operated by Origin Resources Limited (“Origin”) (35%) with partners Sasol Petroleum Australia Limited (“Sasol”) (35%) and Falcon (30%). Falcon retains a 30% interest in 4.6 million gross acres of the Beetaloo Basin.

The principal objectives of the 2015 three well drilling programme are to:

·penetrate the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality;

·evaluate oil versus gas maturity and determine the most prospective areas and depth window;

·provide further information on the aerial distribution of the target Middle Velkerri formation; and

·collect data points for subsequent vertical and horizontal drilling.

Formation evaluation and reservoir characterisation will be carried out from the initial three wells through petrophysical interpretation, core analysis, geomechanical studies and stimulation design.

Philip O’Quigley, CEO of Falcon commented:

“Amungee NW-1 is the second of our 2015 fully carried three well drilling programme with our partners Origin and Sasol and follows the successful drilling of the first well, Kalala-S1. This second well is designed to once again penetrate and acquire further data from the Middle Velkerri formation. We’re currently evaluating the extensive sidewall core and wireline data and the geochemical analysis of cuttings acquired from Kalala- S1 and look forward to reporting our findings in the near future.”

**

The 13,000 holds the balance of power.