Falcon Oil acquires 25% interest in five Buckskin wells

2008-11-10 16:24 ET - News Release

Mr. Marc Bruner reports

FALCON OIL & GAS LTD. ANNOUNCES CLOSING OF INITIAL BUCKSKIN MESA TRANSACTION

Falcon Oil & Gas Ltd. has closed the transaction entered into in August, 2008, to acquire a 25-per-cent working interest in five wells located within PetroHunter Energy Corp.'s 20,000-acre Buckskin Mesa project in the Piceance basin, Colorado. Under the terms of the agreement, Falcon is depositing $7-million (U.S.) into an escrow account to be used exclusively for a testing and completion program on the five wells. After evaluating the results obtained from these tests, Falcon will determine whether to exercise its option to acquire a 50-per-cent working interest (37.5-per-cent net revenue interest) in the entire Buckskin Mesa project including the five wells.

"We are looking forward to further develop the Buckskin Mesa project together with PetroHunter," stated Falcon's chairman and chief executive officer, Marc Bruner. "This is an important step for Falcon to expand its operations worldwide as well as to have potential near-term gas production in one of the most prolific and active gas-producing areas in North America."

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