Falcon Oil & Gas Ltd. – Binding Letter of Intent Signed with New Joint Venture Partner for The Canadian Business Journal

Falcon Oil & Gas Co., Ltd.
(“Falcon” or “Company”)

binding letter of intent executed in new joint venture partner

October 11, 2022 – Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) announces its subsidiary, Falcon Oil & Gas Australia Limited (“falcon australia”), binding letter of intent (“Roy”) Tamboran (B1) Pty Limited (“Tamboran”), a joint venture between Sheffield Holdings LP and Tamboran Resources Limited, under which the parties have agreed to amend the terms of the Joint Operating Agreement (“Joa”) and farm-in contracts (“FIA), respectively dated May 2, 2014 (as amended), Origin Energy B2 Pty Ltd (“Yuan) regarding Falcon Australia’s interest in the Beetaloo Sub-Basin Exploration Permit.

The Board believes the FIA ​​and JOA amendments will significantly improve Falcon’s future capital conservation and selectivity. The main LOI conditions are:

• Falcon Australia will receive additional carry for future well costs of up to A$30 million (Falcon Australia’s net value of A$6.75 million).
• Introduction of limited pro rata units for single risk operations up to 6,400 acres per well. This will allow Falcon Australia to voluntarily participate in drilling future wells.
• Sharing of well data on only one well at risk, providing Falcon Australia with critical data and analytical visibility, even if Falcon Australia chooses not to participate.When
• The preemptive rights related to the sale of Origin’s 77.5% interest in the Beetaloo Sub-basin announced on 19 September 2022 will not be exercised by Falcon Australia and all preemptive rights and similar rights will be removed from the JOA. increase. Falcon Australia with greater flexibility to realize licensing benefits.

The parties will negotiate and agree on a complete amendment to the JOA and FIA to reflect the terms of the LOI.

Drilling of the first of two Stage 3 wells is about to commence and Falcon Australia continues to financially benefit from the remaining carry under the existing FIA and JOA with Origin.

Philip OxigreeCEO of Falcon, commented:

“Falcon Australia Welcome new JV partners, Sheffield Holdings and Tambouran resource. Our immediate focus is on two stage 3 Amungee wells, we are really excited about the future the pace of Beataloo development. of Proposed modification to with the FIA JOA makes Falcon very dangerous strong Advances position to provide options to our shareholders in terms of future valuation and level of participation in development drilling. eEach well-dug future of Beataloo Basin further reduces riskplay andas a result of the proposed changes contemplated by the LOI, Falcon can coordinate its participation To Preserve capital while maximizing its options.”

Investor Meet Q&A
Falcon will be hosting a live investor Q&A with Philip O’Quigley via the Investor Meet Company platform today, October 11, 2022 at 10:00am BST.

The presentation is open to all existing and potential shareholders and you can submit questions at any time during the live presentation.

Investors can sign up for Investor Meet Company for free and add to join Falcon Oil & Gas Ltd. in the following ways:
https://www.investoreetcompany.com/falcon-oil-gas-ltd/register-investor

Investors already following Falcon Oil & Gas Ltd. on the Investor Meet Company platform will be automatically invited.

A recording of the presentation will be available later today on the Investor Meet Company platform and on the company’s website.

It contains inside information.

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contact details:

Falcon Oil & Gas Co., Ltd.	+353 1 676 8702
Philip Oxigree, CEO	+353 87 814 7042
Anne Flynn, CFO	+353 1 676 9162
Cenkos Securities plc (NOMAD & Broker)
Neil Macdonald / Derrick Lee	+44 131 220 9771

About Falcon Oil & Gas
Falcon Oil & Gas Ltd is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets with a current portfolio focused on Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada, with headquarters in Dublin, Ireland and a technical team in Budapest, Hungary.

Falcon Oil & Gas Australia Limited is a 98% subsidiary of c. Falcon Oil & Gas Ltd.

For more information on Falcon Oil & Gas Ltd., please visit www.falconoilandgas.com.

about Tamboran (B1) Pty Limited
Tamboran (B1) Pty Limited is a 50:50 joint venture between Tamboran Resources Limited and Sheffield Holdings, LP.

Established in 2009, Tamboran Resources Limited is a public natural gas company listed on the ASX (TBN) and OTC markets (TBNNY). Have a vision to support CO net zero₂ Australia and the Asia-Pacific Energy Transformation through Low-CO2 Development₂ Unconventional gas resources in Australia’s Northern Territory. Headquartered in Sydney, Australia, the company has a global management team that leverages extensive experience in successfully commercializing unconventional gas throughout North America. The team brings a wealth of knowledge including state-of-the-art shale reservoir assessments, cutting-edge drilling and completion design technology.

Bryan Sheffield of Sheffield Holdings LP is a highly successful investor with a history of significant profits in the US unconventional energy sector. He was the founder of Parsley Energy Inc. (“PE), an independent unconventional oil and gas producer in the Permian Basin, Texas, and previously served as Chairman and CEO. PE was acquired by Pioneer Natural Resources Company for over US$7 billion hePioneer”), itself a major independent oil and gas company that became a Permian pure company through its PE acquisition. $60 billion.

Glossary

Australian dollar		Australian dollar
FIA		Farmin Agreement Dated May 2, 2014, As Amended From Time To Time
Joa		JOINT OPERATING AGREEMENT DATED 2nd MAY 2014, AS AMENDED FROM TIME TO TIME
Prorate unit		The area allotted around a well where the only hazardous work is done
Single risk business		Operations performed by fewer than all parties to the joint venture

Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release may constitute forward-looking information. Statements contained in this news release that are not statements of historical fact may be considered forward-looking information. Forward-looking information typically includes words such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “predict”, ” It includes words such as “believe”, “estimate”, and “plan”. , “Depends”, “Possible”, “Will”, “Forecast”, “Forecast”, “Budget”, “Hope”, “Proposal”, “Support”, “Planned”, “Possible”, or any of these Negative form of the term or similar words suggesting future consequences. In particular, the forward-looking information in this press release includes statements relating to the signed Letters of Intent, proposed amendments to the JOA and FIA, future participation options and restricted pro rata units relating to sole risk operations offering future single Information includes, but is not limited to: risk operations and information related to our drilling program; This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Risks, assumptions and other factors that may affect actual results include risks related to volatility in shale gas market prices. Risks associated with exploration, development and production of shale gas reserves. General economic, market and business conditions. Substantial capital requirements; uncertainties inherent in reserves and resource estimates; the scope and cost of compliance with government laws and regulations and the impact of changes in such laws and regulations; The need to obtain regulatory approval before starting development. Environmental risks and hazards and costs of complying with environmental regulations. Aboriginal claims; inherent risks and hazards associated with the operation, such as mechanical or pipe failures, craters, or other hazardous conditions; Due to potential cost overruns, well drilling is speculative, often costing more than estimated and may not lead to discovery. fluctuations in foreign exchange rates; competition for capital, equipment, new leases, pipeline capacity, and skilled personnel; failure of license, lease and permit holders to meet such requirements; changes in loyalty schemes; inability to accurately estimate costs of abandonment and reuse; inaccurate estimates and assumptions made by management and its joint venture partners; effectiveness of internal controls; possible lack of drilling rigs available; Failure to acquire or retain key personnel. title flaws; geopolitical risk; and litigation risk.

Readers are cautioned that the preceding list of important factors is not exhaustive and that these factors and risks are difficult to predict. Actual results may differ materially from those implied by forward-looking statements. Falcon undertakes no obligation to update any forward-looking statements, except as required by securities laws applicable to Falcon, or to update reasons why actual results may differ from those reflected in the forward-looking statements. shall have no obligations. Additional information identifying risks and uncertainties is contained in Falcon’s Canadian securities regulatory filings available at www.sedar.com, including under “Risk Factors” on the Annual Information Form. .

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

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