Falcon Oil & Gas Ltd. Receives an Updated Independent Resource Assessment From RPS Scotia for Its Mako Trough Deep Gas Project in Hungary

    DENVER, May 5 /CNW/ -- Falcon Oil & Gas Ltd. (TSXV: FO) announced that it
has received a new, updated, independent report from RPS Scotia disclosing an
updated resource estimate of the Mako Trough Pannonian Basin Gas Accumulation
(the "Mako Trough") within the production license area of Falcon's deep gas
exploration project in southeastern Hungary (the "RPS Scotia Report").
    The RPS Scotia Report is compliant with National Instrument 51-101
"Standards of Disclosure for Oil and Gas Activities" ("NI 51-101").
    The RPS Scotia Report on the resource of the Mako Trough describes a
probabilistic distribution of the potentially recoverable portion of
"Contingent Resources" as defined by the Canadian Oil and Gas Evaluation
Handbook and does not represent an estimate of reserves.
    Based on all available data, RPS Scotia has assigned the following
probabilistic estimation of potentially recoverable contingent resources in
the Szolnok formation, the Lower Endrod, the Basal Conglomerate and the
Synrift Sequence.  The RPS Scotia Report measures the Mako Trough in trillions
of cubic feet (Tcf) and millions of barrel oil (mmbo):


    <<
                                          Probability Greater Than
                                     P90 (90%)    P50 (50%)   P10 (10%)
    Probabilistic estimation
     of potentially recoverable      25.8 Tcf     43.9 Tcf     68 Tcf
     contingent resources (1) (2)    42.6 mmbo    97.8 mmbo   202.7 mmbo
    >>


    Notes:

    <<
    (1) The resource estimate has been conducted using the definitions
        specified by the Canadian Oil and Gas Evaluation Handbook. The Mako
        Trough resource falls under the "Discovered Resources" classification.
    >>

    <<
        The values refer to the probabilistically estimated recoverable
        fraction of "Contingent Resources" within that classification.
        Contingent resources are those quantities of oil and gas estimated on
        a given date to be potentially recoverable from known accumulations
        but are not currently economic.  The economic nature of this resource
        has not yet been assessed due to the early stage of data gathering for
    >>

    <<
        the Mako Trough resource. The recoverable portion of this "Contingent
        Resource" is contingent upon the demonstration of productive
        capability of the various zones of interest through well testing and
        longer term production testing which has not occurred as of the
        effective date of the report.
    (2) Estimates are as of March 31st, 2008, the effective date of the RPS
        Scotia Report.
    >>


    <<
    A copy of the RPS Scotia Report is available at http://www.sedar.com.
    About The Scotia Group
    >>
    Founded in 1981, The Scotia Group recently joined The RPS Group and is
now known as RPS Scotia, Inc. RPS Scotia consists of approximately 20
geoscience and petroleum engineering professionals and has offices in Houston
and Dallas. RPS Scotia provides advisory services to the oil and gas industry
specializing in technical and economic analysis of projects, properties and
companies.  In addition to advisory services RPS Scotia provides traditional
consulting services including integrated field studies, reserves reporting,
geology, geophysics, and reservoir engineering. Clients include banks,
financial institutions, the legal community, government agencies, and major
and independent international energy organizations including ChevronTexaco,
EnCana, Petrobras, Reliance Industries, Repsol Exploration, Pemex Exploracion
y Produccion, Woodside Petroleum and the U.S. Department of Energy.  The RPS
Group has over 164 professionals located worldwide, in the U.S.; Canada, the
U.K., Australia, Russia, and Singapore and provides similar and expanded
capabilities including sedimentology, environmental services, and geohazards.
    <<
    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 Exploration and Production,
LLC, and in Romania through its wholly-owned subsidiary JVX Energy
Corporation.  Further information about Falcon is available at
http://www.falconoilandgas.com.

    <<
     Falcon Oil and Gas Ltd. Investor and Public Relations:
     Alexander Hubbard-Ford
     +1 303-951-1116
    >>
    In the interests of providing Company shareholders and potential
investors with information regarding the Company, including the Company's
assessment of its and its subsidiaries' future plans and operations, certain
statements included in this press release may constitute forward-looking
information or forward looking statements (collectively, "forward-looking
statements"). All statements contained herein that are not clearly historical
in nature are forward-looking, and the words "anticipate", "believe",
"expect", "estimate" and similar expressions are generally intended to
identify forward-looking statements. Similarly, forward-looking statements in
this press release include, but are not limited to anticipated developments of
the Company's drilling project in Hungary and the timing thereof, the
Company's drilling project in Romania and the timing thereof, capital
investment levels and the allocation thereof, pipeline capacity, government
royalty rates, reserve and resources estimates, the level of expenditures for
compliance with environmental regulations, site restoration costs including
abandonment and reclamation costs, exploration plans, acquisition and
disposition plans including farmout plans, net cash flows, geographic
expansion and plans for seismic surveys. In addition, please note that
statements relating to "reserves" or "resources" are deemed to be
forward-looking statements, as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves and resources described
can be profitably produced in the future. Such statements represent the
Company's internal projections, estimates or beliefs concerning, among other
things, an outlook on the estimated amounts and timing of capital
expenditures, anticipated future debt levels and incentive fees or revenues or
other expectations, beliefs, plans, objectives, assumptions, intentions or
statements about future events or performance. These statements are only
predictions. Actual events or results may differ materially. Although the
Company believes that the expectations reflected in the forward-looking
statements are reasonable, it cannot guarantee future results, levels of
activity, performance or achievement since such expectations are inherently
subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors could cause the Company's actual
results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company and the
foregoing list of important factors is not exhaustive. These forward-looking
statements made as of the date hereof disclaim any intent or obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise. Company shareholders and
potential investors should carefully consider the information contained in the
Company's filings with Canadian securities administrators at
http://www.sedar.com before making investment decisions with regard to the
Company.
    The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

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