Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - FALCON OPTIMISES ITS INTEREST IN THE BEETALOO

Falcon Oil & Gas Ltd. has elected to reduce its working interest in the proposed Shenandoah South pilot project from 22.5 per cent to 5 per cent. This optimises Falcon's interest in the Beetaloo, since Falcon will only have to pay for 5% of the costs of the two wells to be drilled in 2024 as part of the Pilot but will still retain a 10% working interest in the enlarged area of circa 72,000 acres around the Pilot and a 22.5% working interest in the remaining 4.52 million acres.

Key Highlights

The election by Falcon to reduce its working interest to 5% will significantly reduce Falcon's cost to participate in the Pilot.

Falcon also retains the benefit of a further A$16.67m (US$11m) of gross carry that will be used to offset against the costs of the Pilot in 2024, thereby further reducing Falcon's cost to participate.

Falcon participated in the SS1-H well in 2023 at its 22.5% working interest which created a Drill Spacing Unit ("DSU") of 20,480 acres.

The two wells in the 2024 drilling program will create two new DSU's totalling 51,200 acres in which Falcon will participate and retain a working interest at 5%.

Falcon's combined weighted average ownership and future participation entitlement of this enlarged area of 72,000 acres post the Pilot will be 10%.

Falcon retains its full 22.5% participation interest in the remaining 4.52 million acres in the Beetaloo, net 1 million acres to Falcon.

Philip O'Quigley, CEO of Falcon commented:

"Falcon's election to reduce its participating interest to 5% in the Pilot is a prudent use of our capital resources as it significantly reduces our cost exposure. Post a successful Pilot, Falcon will own a weighted average interest of 10% in the enlarged area of around 72,000 acres around the Pilot and will be able to participate in any future development of this area, whilst still retaining 22.5% interest in the remaining 4.52 million acres. This election by Falcon demonstrates our ability to optimise our interest in the Beetaloo for the benefit of shareholders.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & 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 Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

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