Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - BEETALOO OPERATIONAL UPDATE

Falcon Oil & Gas Ltd. has provided an operational update on the Shenandoah South 1H (SS1H) well in EP117 which is operated by Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd.

Details are as follows:

• A diagnostic fracture injection test (DFIT) of the Amungee member B shale on the SS1H well was conducted to analyze geo-mechanical and reservoir properties, with results verified by third party subsurface experts, Subsurface Dynamics Inc.
• Formation pressures at SS1H were monitored for over 20 days and analyzed to provide a pore pressure prediction for the area.
• DFIT results have demonstrated an overpressured regime, with a pore pressure gradient of at least 0.54 pound per square inch (psi) per foot, which is consistent with an overpressured regime observed in the core area of the Marcellus shale. In addition, this result provides confidence that the coming flow test of the SS1H well can replicate or exceed commercial flow tests achieved at the Santos-operated Tanumbirini 2H and Tanumbirini 3H wells (0.51 to 0.56 psi per foot) in the EP161 acreage.
• Condor Energy Services has commenced the mobilization of stimulation equipment to the SS1H well pad ahead of the planned 10-stage stimulation program in November, 2023. IP30 flow rate results are anticipated to be released in early Q1 2024, subject to the timing of stimulation fluid flow back.
• On successful flow testing of SS1H, the Beetaloo joint venture (BJV) expects to be in a position to sanction a proposed pilot development in the Shenandoah South region.

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

"With the DFIT results along with log analysis providing confidence, we look forward to the next phase of operations in the Beetaloo with the stimulation and extended production testing of SS1H commencing in November. We will continue to update the market as results become available."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas'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, the Netherlands. He is a member of the American Association of Petroleum Geologists.

Diagnostic fracture injection test

The DFIT was conducted on Oct. 6, 2023, after the casing and cement integrity was verified suitable for hydraulic fracturing operations. A DFIT is a widely accepted industry technique used to analyze geo-mechanical and reservoir properties.

The process involves injecting a low volume of fluid down the wellbore to break down the formation, creating a small initial fracture, allowing for the pressure behaviour after injection to be monitored.

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.

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