Once again congratulation to all 13,000 long-term shareholders.

We're slightly ahead of schedule of the 9 well program. I'm raising Falcon's Present Value to $3.00 and the Target Price to $6.00

Falcon Oil & Gas Ltd.: Successful Drilling of Amungee NW-1H Horizontal Well

DUBLIN, IRELAND--(Marketwired - Nov. 18, 2015) - Falcon Oil & Gas Ltd. ("Falcon") (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC) is pleased to announce that drilling operations have successfully concluded on the Amungee NW-1H horizontal well. The well was drilled to a total measured depth of 3,808 metres, including 1,100 metres horizontal section in the "B Shale" interval of the Middle Velkerri Formation, 100 metres more than originally planned. Results obtained to date are very encouraging.

Highlights of preliminary results from the Amungee NW-1H horizontal exploration well:

• The Amungee NW-1H well, the first horizontal well drilled in the Beetaloo basin, illustrates the advancement and acceleration of the exploration program;
• Favourable shale properties extending from the Amungee NW-1 vertical well qualify the area as a prospective and laterally extensive sweet spot in the north of the Beetaloo basin;
• Excellent gas shows throughout indicate the likelihood of high levels of gas saturation across the entire horizontal section;
• Consistent lithology, clay mineral composition, and total gas readings recorded throughout the drilled "B Shale" section provides a very solid platform for multi-stage hydraulic fracturing planned for 2016.

The Beetaloo JV Partners' decision to target the "B Shale" interval of the Middle Velkerri Formation twelve months ahead of schedule has proved fully justified with the well successfully fulfilling all of its exploration objectives.

The Amungee NW-1H well will be cased, cemented and suspended until the performance of the multi-stage hydraulic fracturing planned for 2016.

The JV's attention will now focus on an in-depth shale evaluation program and petrophysical analysis of all the technical data gathered on the three wells drilled to date. This includes data obtained from the first Diagnostic Fracture Injection Testing ("DFIT") successfully carried out on the Kalala S-1 well earlier this month.

Rig 185 will be "warm stacked" on location in the Beetaloo basin allowing for an early commencement of the 2016 drilling program. The cost of stacking Rig 185 will be borne by Origin and Sasol with no financial impact on Falcon.

Philip O'Quigley, CEO of Falcon commented:

"This continues to be an exciting time for Falcon with continued positive developments for the Beetaloo Joint Venture. Experiencing excellent gas shows during the drilling of Amungee NW-1H demonstrates the high level of gas saturation in the entire horizontal section which is a strong indication of the potential prospectivity of our Beetaloo acreage. The stacking of rig 185 demonstrates further commitment from our JV partners Origin and Sasol, and will enable us to commence the 2016 drilling and exploration program at the earliest possible opportunity.

"The ongoing in-depth shale evaluation program and petrophysical analysis should provide further positive evidence of the high prospectivity of the Beetaloo basin. This should provide the JV with the technical knowledge to best plan and design the 2016 program which will include a further two vertical wells and the multi-stage hydraulic fracturing of the Amungee NW-1H horizontal well. A further update on this technical evaluation will be provided to the market in due course."

Stacking a Rig

Stacking a Rig means leaving a rig idle but operational. A ready or warm stacked rig typically retains most of its crew and can deploy quickly if an operator requires its services. In a ready stacked state, normal maintenance operations similar to those performed when the rig is active are continued by the crew so that the rig remains work ready. Thus, a rig is kept in a ready stacked state when its owner anticipates that the rig will be able to return to work shortly - either due to having a commitment in hand or the owner's perception that work will be secured relatively quickly.

Diagnostic Fracture Injection Tests ("DFITs")

The JV partners have agreed to expand the exploration program by introducing Diagnostic Fracture Injection Tests ("DFITs") on all of the vertical wells drilled in 2015 and 2016. DFIT is the most adequate tool to obtain reservoir quality data, such as pressure and permeability, and completion quality data, all pertaining to the prospectivity of the Middle Velkerri shale gas play.

Background

On 2 May 2014, Falcon announced it had entered into a Farm-Out Agreement and Joint Operating Agreement with Origin and Sasol (collectively referred to herein as the "Farminees") with each farming into 35% of the Falcon's exploration permits in the Beetaloo Basin, Australia through its 98% subsidiary, Falcon Oil & Gas Australia Ltd. ("Falcon Australia"). The Farminees will carry Falcon in a nine well exploration and appraisal programme from 2015 to 2018.

• Farminees will pay for the full cost of completing the first five wells estimated at A$64 million, and will fund any cost overruns, with work expected to be completed between 2015 and 2016.
• Farminees to pay the full cost of the following two horizontally fracture stimulated wells, 90 day production tests and micro seismic data collection with a capped expenditure of A$53 million, any cost overrun funded by each party in proportion to their working interest. This work programme is expected to be undertaken in 2017.
• Farminees to pay the full cost of the final two horizontally fracture stimulated wells and 90 day production tests capped at A$48 million, any cost overrun funded by each party in proportion to their working interest. This work programme is expected to be undertaken in 2018.
• Farminees may reduce or surrender their interests back to Falcon Australia only after:
  • The drilling of the first five wells or
  • The drilling and testing of the next two horizontally fracture stimulated wells.

This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology degree at the Eötvös L. University in Budapest, Hungary and his PhD at the Vrije Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

About Origin Energy

Origin Energy (ASX:ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has approximately 6,900 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has one of the country's largest and most flexible generation portfolios with approximately 6,000 MW of capacity, through either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.

Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies. For more information go to www.originenergy.com.au.

About Sasol

Sasol is an international integrated chemicals and energy company that leverages the talent and expertise of about 31 000 people working in 37 countries. Sasol develops and commercialise technologies, and build and operate world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals and low-carbon electricity.

Sasol, through its subsidiary, Sasol Exploration and Production International (E&PI) develops and manages the group's upstream interests in oil and gas exploration and production in Mozambique, South Africa, Australia, Canada and Gabon. It produces natural gas and condensate from Mozambique's Pande and Temane fields, shale gas from their share in the Farrell Creek and Cypress A assets in Canada, and oil in Gabon through their share in the offshore Etame Marin Permit (EMP). E&PI sells Mozambican gas under long-term contracts to Sasol Gas and external customers, condensate on short term contracts, while selling Canadian gas into the market at spot prices. Oil is sold to customers under annual contracts. For more information go to www.sasol.com.

Well done, 13,000.