ExxonMobil Spuds New Hungarian Well at Mako Trough

Falcon has provided an update of the operations of the "Initial Work Program" under its April 10, 2008 Production and Development Agreement, as amended, with Exxon Mobil Corporation affiliate Production Ventures East Hungary Kft ("ExxonMobil") and MOL Hungarian Oil and Gas Plc.

Falcon is pleased to announce that ExxonMobil, as operator, began drilling the Foldeak-1 well on January 14th, 2009 with the purpose of testing the hydrocarbon potential of the Szolnok formation.