Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - SPUDDING OF AMUNGEE NW-3H IN EXPLORATION PERMIT 98

Falcon Oil & Gas Ltd. has spudded the Amungee NW-3H (A3H) horizontal well in exploration permit 98 with an H&P (Helmerich & Payne) super-spec FlexRig flex 3 rig in the Beetaloo subbasin, Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd. The A3H well is the second of the two-well program in 2023 and will target the Amungee member B shale at an estimated depth of 2,450 metres TVD (total vertical depth). The A3H well is located on the same well pad as the Amungee NW-2H well in exploration permit (EP) 98 and is approximately 60 kilometres north of the Shenandoah South 1H well (SS1H), which the company completed the drilling of last week.

Drilling activity is expected to take approximately 25 days, including a 1,000-metre horizontal section. A stimulation program is planned for the second quarter of 2024, following the end of the Northern Territory wet season.

Falcon will participate in the A3H well at its full participating interest of 22.5 per cent, which, under the terms of the joint operating agreement, will create a drilling spacing unit (DSU) of 20,480 acres.

Philip O'Quigley, chief executive officer of Falcon, commented:

"The spudding of the A3H horizontal well, just a week after drilling the SS1H well, is an exciting acceleration in the appraisal of the Beetaloo subbasin. We are confident that learnings and results from the previous two Amungee wells drilled in EP 98, together with the drilling of the SS1H well, will have a positive impact on the outcome of the results from this A3H well. Preparations for the stimulation program of the SS1H well are ongoing and we look forward to updating the market in due course as soon as those operations commence."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil's head of technical operations. Dr. Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary, and his PhD at the Vrije Universiteit Amsterdam, Netherlands. He is a member of AAPG.

Drilling spacing unit

Under the latest-executed joint operating agreement, any well in a new area creates a DSU (formerly referred to as a pro ration unit). The size of the DSU varies depending on: a) the type and length of the well to be drilled; and b) whether or not the well is a commitment well under the terms of the exploration permit. Given that A3H is a commitment well on EP 98, to satisfy permit requirements to the Northern Territory government, the DSU created is approximately four times that of other wells. Wells which are not commitment wells creating a new DSU will be a maximum of 6,400 acres.

About Falcon Oil & Gas Ltd.

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

Falcon Oil & Gas Australia is an approximately 98-per-cent subsidiary of Falcon Oil & Gas.

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