Ryder Scott Evaluates Falcon's Prospective Resources in Beetaloo Basin

Falcon Oil & Gas has announced the results of the recently completed Ryder Scott Company-Canada Resource Analysis Report ("Report") on the Company's Beetaloo Basin Project in the Northern Territory (NT), of Australia as of July 1, 2009.

Based on all available data, Ryder Scott has prepared an evaluation of the hydrocarbon resource potential pertaining to Falcon's interests in the Beetaloo Basin which consist of four Exploration Permits comprising approximately 28,200 square kilometres (7 million gross acres), covering the majority of the Beetaloo Basin and basin margin highs. Through its wholly owned Australian subsidiary, Falcon Oil & Gas Australia Pty Ltd, the Company owns an undivided 75 percent working interest in the Permits, and is the operator of the Permits.

The Report on the hydrocarbon resource potential of the Beetaloo Basin describes a possible distribution of the unrisked prospective (recoverable) portion of unrisked "Undiscovered in-place Resources," as defined by the Canadian Oil and Gas Evaluation Handbook (COGEH) and does not represent an estimate of reserves or contingent resources. The Report has been prepared in accordance with the Canadian standards set out in the COGEH and is compliant with National Instrument 51-101 "Standards of Disclosure for Oil and Gas


Table 9: Total Undiscovered and Prospective (Recoverable)
	                     Oil Resources in the Beetaloo Basin, Australia

	                                 Unrisked             Prospective
	                                Undiscovered         (Recoverable)
	      Reservoir                 Oil-In-Place         Oil Resources
	                                   (Bstb)                (Bstb)

	    Low     Best   High     Low    Best   High

	    Hayfield               0.049   0.088   0.148   0.005  0.010  0.018
	    Jamison                8.220  11.920  16.402   0.800  1.337  2.153
	     Subtotal              8.269  12.008  16.550   0.805  1.347  2.171
	    Upper Kyalla
	     Shale Oil             127.4   180.9   256.0    11.3   17.8   27.4
	    Shale Oil
	     Subtotal              127.4   180.9   256.0    11.3   17.8   27.4
	     Total Oil Resource
	      Within The Beetaloo
	      Basin               135.67  192.91  272.55   12.11  19.15  29.57

	                  Table 10: Total Undiscovered and Prospective (Recoverable)
	                     Gas Resources in the Beetaloo Basin, Australia

	                                    Unrisked            Prospective
	                                 Undiscovered          (Recoverable)
	      Reservoir                  Gas-In-Place         Gas Resources
	                                    (Tscf)                (Tscf)
	                            Low    Best    High     Low    Best   High
	    Hayfield (Associated
	     Solution)             0.013   0.025   0.046   0.002  0.004  0.009
	    Jamison (Associated
	     Solution)             2.041   3.330   5.349   0.313  0.585  1.066
	    Moroak                 0.800   1.437   2.346   0.607  1.048  1.731
	    Conventional Subtotal   2.85    4.79    7.74    0.92   1.64   2.81
	    Moroak BCGA            21.00   29.61   40.85    3.18   4.85   7.23
	    Bessie Creek BCGA      159.4   210.0   275.0    23.8   34.4   49.4
	    BCGA Subtotal         180.39  239.58  315.81   27.02  39.28  56.64
	    Lower Kyalla
	     Shale Gas             12.70   15.80   19.20    1.90   2.60   3.50
	    Middle Velkerrie
	     Shale Gas              94.6   125.1   160.4    14.2   20.4   29.0
	    Shale Gas Subtotal     107.3   140.9   179.6    16.1   23.0   32.5
	     Total Gas Resource
	      Within The Beetaloo
	      Basin               290.54  385.27  503.16   44.05  63.91  91.94

Ryder Scott evaluates oil and gas properties and independently certifies petroleum reserve and resource quantities in the U.S., Canada and
internationally. Founded in 1937, Ryder Scott is one of the largest, oldest and most respected reservoir-evaluation consulting firms in the industry.

Commenting on the Report and the status of operations on Shenandoah #1 well, Marc Bruner, President, Chairman, and Chief Executive Officer of Falcon Oil and Gas, stated, "We are extremely pleased with the general parameters of the Ryder Scott Report. As we continue to evaluate our data and test our theories regarding the potential of significant hydrocarbon deposits that we believe to be in place in the Beetaloo Basin, the Report helps us to formulate strategic go-forward plans for the region that are in line with the overall goals of our organization. We have entered into a series of service contracts and commenced operations to re-enter, deepen, and test the Shenandoah #1 well in the Basin, which was originally drilled in 2007. With the combination of our own data analysis, the findings of the Report, and the
shear magnitude and size of our exploration permits, it is likely that we will seek a partner in this endeavour. The Shenandoah well is the first step in Falcon taking a careful and structured approach to further exploration and development of this resource."