Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - COMMENCEMENT OF INITIAL PRODUCTION TESTING AT SHENANDOAH SOUTH 1H

Falcon Oil & Gas Ltd. has begun the 30-day initial production (IP30) testing at the Shenandoah South 1H (SS1H) well in EP117, operated by Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran B2 Pty. Ltd.

Following the completion of the 10-stage stimulation program announced on Dec. 7, 2023, and the subsequent successful installation of production tubing, the SS1H well was opened to allow sufficient flow back of stimulation fluid ahead of commencing the IP30 test. For normal operational reasons, the SS1H well was shut in for a three week soak period and was successfully reopened on Jan. 25, 2024. The aim of soaking was to allow for sufficient stimulation fluid to be absorbed by the shale, increasing the relative permeability to gas of the formation and enhancing future production performance. The IP30 test has now commenced and results are expected by the end of February, 2024.

Proof of commercial flow rates as measured over the IP30 day period and which Falcon estimates to be 1.5 million cubic feet per day (MMcf/d) over the 500 metre horizontal section (3.0 MMcf/d normalized over 1,000 metres) or greater will allow the joint venture to progress the sanctioning of the proposed 40 MMcf/d pilot project at Shenandoah South during the first half of 2024.

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

"We look forward to this next phase of operations with the initial production testing of the SS1H well in the Beetaloo and will continue to update the market as results become available."

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.

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