Falcon Minerals Initial Test Results at Magyarcsanad-1 Well by 24hgold

Keywords : Debt | Hungary | Oil | Romania |

FOR IMMEDIATE RELEASE (TSXV Symbol: FO) May 23, 2007

FALCON OIL & GAS LTD. ANNOUNCES INITIAL TEST RESULTS AT MAGYARCSANAD-1 WELL

Mak Trough Well Tests Positive for Oil and Gas within the Endrd formation

Budapest, Hungary May 23, 2007 Falcon Oil & Gas Ltd. (TSXV: FO) (Falcon or the Company) is pleased to announce that the Company has encountered a productive oil and gas interval in the Magyarcsanad-1 exploration well. The productive interval was encountered within the Endrd formation at a depth of 4,057 meters.

In an initial rate test in a seven meter gross interval, which the Company has not yet fracture stimulated, the Magyarcsanad-1 well flowed 377 barrels of oil per day of light crude oil (48 degree API gravity) and 745,000 cubic feet of gas per day. The total thickness of the Endrd formation behind casing is 362 meters.

The initial rate test had an estimated flowing bottom hole temperature of 182 degrees Celsius (360 degrees Fahrenheit) and a 3,843 pounds per square inch (psi) flowing tubing pressure. Down hole pressure measurements, surface fluid and gas samples were continuously monitored through the initial test period to aid the Companys plans for possible appraisal drilling. The liquid hydrocarbons from the well were sold to a third-party under an oil sales contract. Gas was flared. Falcon will move forward with the Magyarcsanad-1 well testing program, and will fracture stimulate the entire 362 meters of the Endrd formation that is behind casing.

Falcon CEO and President, Marc A. Bruner, said, The naturally flowing Endrd oil zone encountered at the Magyarcsanad-1 adds a new dimension to our project, as the scope of our exploration program in Hungary expands to include oil.

The Magyarcsanad-1 well is located in the southern area of Falcons Mak License and is approximately 16.5 kilometers south of Falcons Mak-6 well and approximately nine kilometers east of the Mak-1, Mak-2 and Mak-3 wells, which were drilled several years prior to Falcon's acquisition of the Mak License. The Mak-1, Mak-2 and Mak-3 wells encountered gas and oil shows within the Endrd formation. The Magyarcsanad-1 well was drilled by Falcon as a southern delineation well to assist in defining the boundaries of a Basin Centered Gas Accumulation (BCGA) within the Mak Trough.

The recent and newly completed 3-D seismic acquisition program is being processed and integrated into the Companys previously acquired 3-D programs. This new seismic program covers the Magyarcsanad-1 discovery and will be important in defining possible offset appraisal wells.

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, and in Romania through its wholly-owned subsidiary JVX Energy Corporation. Further information about Falcon is available at www.falconoilandgas.com.

Contacts:
Falcon Oil & Gas Ltd.
Marc A. Bruner, President, Chairman & CEO

Weber Shandwick Worldwide
Peter Duda
+1 (212) 445-8213

Falcon's discovered resources are not reserves. Only those quantities of oil and gas that are anticipated to be economically recoverable from discovered resources are classified as reserves. Until such time as Falcon's discovered resources are proven to be reserves, there is a risk that Falcon may not achieve ongoing operations from which it may generate significant revenue.

In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Companys 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 Companys drilling project in Hungary and the timing thereof, the Companys 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 Companys 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 Companys 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 are made as of the date hereof disclaims 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 Companys 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.

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