DENVER, CO,
Feb. 24, 2009 (Canada
NewsWire via COMTEX) -- (TSXV Symbol: FO)
Falcon Oil
& Gas Ltd. (TSXV: FO) ("Falcon" or the
"Company") today announces
that it has elected not to exercise its option to
acquire a 50% working interest
in PetroHunter Energy
Corporation's ("PetroHunter") 20,000 acre
Buckskin Mesa
project ("Buckskin Mesa Project") located
in the Piceance Basin, Colorado, under
the Purchase and Sale Agreement entered in August
2008 between Falcon and
PetroHunter previously filed on SEDAR.
As initially disclosed in its press release dated
August 25, 2008, Falcon
acquired a 25% interest in five wells in the 20,000
acre Buckskin Mesa Project
(the "Five Wells") for consideration of
US$7 million, and had an option (the
"Option") to acquire an additional 50%
working interest (37.5% net revenue
interest) in the entire Buckskin Mesa Project, including the Five Wells. Falcon
will retain its 25% interest in the Five Wells.
Exercise of the Option would have required Falcon to pay additional
consideration of US$25 million in cash or securities
convertible into Falcon
common shares, or a combination thereof, and incur
spending commitments of US$18
million pursuant to a drilling and development program.
Falcon and PetroHunter continue
to develop the 2009 work program for the jointly
held 7 million acre prospect in Northern Territory, Australia
(the "Beetaloo
Basin"). The 28,888,888 common shares of Falcon issued to PetroHunter
for
Falcon's 50% interest in Beetaloo
remain subject to the contractual agreements
between the companies as previously disclosed;
whereby 14,500,000 shares are
pledged by PetroHunter to Falcon as collateral for Falcon's US$5.0 million loan
to PetroHunter, 11,600,000
shares are available to PetroHunter to pledge as
collateral for loans from third parties, leaving
2,788,888 available for sale by
PetroHunter.
Marc A. Bruner, President, Chairman and CEO of Falcon stated that "results from
the initial testing of the Five Wells did not
warrant Falcon's exercising of the
option under its existing terms and conditions given
the present economic
climate."
About Falcon Oil & Gas Ltd.
Falcon Oil
& Gas Ltd. is a British Columbia
corporation 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, in Romania
through its
wholly owned subsidiary JVX Energy Corporation, in Colorado
through its wholly
owned subsidiary Falcon Oil & Gas USA, Inc., and
in Australia
through its wholly
owned subsidiary Falcon Oil & Gas Australia Pty Ltd. Further
information about
Falcon is available at www.falconoilandgas.com.
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 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.
SOURCE: Falcon
Oil & Gas Ltd.
CONTACT:
Investor Relations, Falcon Oil
& Gas Ltd: North America:
Brad Long, Toll Free
(888) 541-3624, Direct (360) 332-9821, blong@falconoilandgas.com; Europe:
Alexander
Hubbard-Ford, Phone + 44 (0) 20
79351543, Mobile + 44 (0)
7984481541,
investor@falconoilandgas.com; Falcon Oil & Gas Ltd.: Marc Bruner, CEO, 1875
Lawrence Street,
Suite 1400, Denver, Colorado, 80202, USA,
Phone (303) 893-1800, Fax
(303) 572-8927
Copyright (C) 2009 CNW Group. All rights reserved.
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