BUDAPEST, Hungary, Feb. 10 /PRNewswire-FirstCall/ -- Falcon Oil & Gas Ltd. (TSXV: FO) provided an update of its two-well drilling program in the Mako Trough of southeastern Hungary. Pusztaszer-1 TXM Oil and Gas Exploration Ltd. (TXM), Falcon's wholly owned subsidiary, has announced that the Pusztaszer-1 exploratory well is presently drilling ahead at a measured depth of 3659 meters. Formation tops for three key horizons have been penetrated. The Top of Algyo and Top of Szolnok formations have been determined using down-hole, real-time data (Gamma Ray) and were subsequently confirmed by electric logging. Also based on real-time data, the Company's Hungarian mudlogging team advises that the Top of the Endrod formation was penetrated at approximately 3035 meters. Actual formation tops will be confirmed upon a full suite of logs upon reaching Total Depth of the well. In addition to the down hole, real time measuring devices being used at the well site, a full suite of mudlogging services is being utilized at the surface to determine formation lithology, total gas quantities and individual gas quantities for C1 through C5. Significant gas shows up through C5 have been encountered at several intervals within the Endrod Formation in spite of drilling the interval with an overbalanced mud weight. TXM's geologist believes that the gas shows may be associated with a transition pressure zone where pressure values are increasing from a normally pressured regime into an overpressured zone. One of the key objectives of the Pusztaszer-1 well is to penetrate the overpressured cell in the northern-most reaches of the Mako Trough. Basin Centered Gas Accumulations (BCGA) are typically found in abnormally pressured systems and TXM intends to test the BCGA concept with an aggressive drilling program designed to assess the entire Mako Trough. Based on his experience with BCGA systems in the western United States, Chairman and Chief Executive Officer Marc A. Bruner commented, "While I am not surprised by our current findings, I am certainly pleased to see the presence of gas shows in the well bore. Our logging program at total depth will give us a better understanding of reservoir quality and pressure changes as the well is being deepened." The gas shows in the Endrod interval have accelerated the decision of setting production casing at Total Depth of the well before any flow testing of the numerous zones. The alternative of running a large number of Drill Stem Tests (DST) by straddle-packing the potential productive zones in the open well bore was ruled out as being too risky from a well stability and safety standpoint in an over-pressured environment. Total depth for the Pusztaszer-1 well is forecast to be approximately 4100 meters. After logging, setting of production casing and cementing, a TXM specialist team with Rocky Mountain BCGA experience will advise on the testing program. Mako-6 TXM's second well in the Mako Trough is the Mako-6 exploratory well. The Mako-6 is presently at a measured depth of 2724 meters and preparations are being made to run 13 3/8's inch casing. Similar to the Pusztaszer-1 well, the Mako-6 is a BCGA test, but located in the southern portion of the Mako Trough approximately 45 kilometers to the southeast of the Pusztaszer location. Total depth is expected to be approximately 6000 meters to penetrate gas-bearing formations discovered in the historic Hod-1 well circa 1976. 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 Oil & Gas Ltd. is available at http://www.falconoilandgas.com/. Contacts: Falcon Oil & Gas Ltd. Marc A. Bruner President, CEO and Chairman Allan D. Laird Director (303) 803-3646 United States CTA Public Relations Bevo Beaven Vice President/General Manager (303) 665-4200 United Kingdom 4C Burvale Carina Corbett, John Carrick Smith Directors 020-7907 4760 / 4761 The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the above-described transaction and has neither approved nor disapproved the contents of this press release. FCMN Contact: shirley@ctapr.com DATASOURCE: Falcon Oil & Gas Ltd. CONTACT: Marc A. Bruner, President, CEO and Chairman, or Allan D. Laird, Director, both of Falcon Oil & Gas Ltd., +1-303-803-3646; or United States, Bevo Beaven, Vice President/General Manager of CTA Public Relations, +1-303-665-4200, for Falcon Oil & Gas Ltd.; or United Kingdom, Carina Corbett, 020-7907 4760, or John Carrick Smith, 020-7907 4761, both Directors of 4C Burvale, both for Falcon Oil & Gas Ltd. Web site: http://www.falconoilandgas.com/

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