DUBLIN, IRELAND--(Marketwired - Jun 13, 2013) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(FOG.L)(ESM:FAC) ("Falcon" or the "Company"), is pleased to announce that further to its announcement on 23 May 2013, the first of three exploration wells "Kútvölgy-1", to evaluate the gas potential of the Algyö Formation at a depth of approximately 3,000m in the Mako Trough, was spudded on the 11th June, 2013.
Drilling of this first well is expected to take approximately 40 days. It is planned to drill into the Algyö Formation, log and suspend the well for further evaluation prior to carrying out an appropriate testing program.
In accordance with the agreement with NIS, announced on 14 January 2013, Falcon is fully carried as all costs associated with this three well drilling program are funded by NIS. Any hydrocarbon sales revenue resulting from this program will be shared equally between Falcon and NIS.
Philip O'Quigley, CEO of Falcon commented:
"We are pleased to confirm that the drilling of the first of a three well program with NIS in Hungary has commenced. We are fortunate to have a strong partner in NIS funding this drilling campaign. I look forward to sharing the result of the drilling campaign with the market in due course."
About the Algyö
The Algyö is a relatively shallow play between 2,300m and 3,500m. A number of Falcon wells have been drilled through the Algyö in recent years, some of which encountered gas shows, but to date no well has ever tested the play concept at an optimal location as previous wells targeted deeper intervals of up to 6,000m.
Multiple Algyö prospects have subsequently been identified by Falcon through extensive AVO analysis and the upcoming exploration drilling program with NIS will be targeting three separate high-graded prospects.
A recent independent study by RPS Energy (January 2013) included for the first time Prospective Resource recoverable volumes attributable to the shallow "Algyo Play". According to the RPS CPR report, eight of the ten prospects identified by Falcon contain 568 BCF of prospective recoverable gas resources, each with a 10% Geological Probability of Success ("GPoS").
About Falcon Oil & Gas Ltd.
Falcon 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 spread between Australia, South Africa and Hungary. Falcon 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.