Day One, Monday 22nd February 2010

Company presentation: Falcon Oil and Gas (TSX:FO)

Presented by: Mark Bruner, President and CEO

Falcon is operator for the development a potentially major discovery of unconventional oil and gas in the Beetaloo Basin in the Northern Territory of Australia approximately 500 km south of Darwin. The discovery of a major new Basin Centred Gas and Oil Accumulation in the Beetaloo with the size of the Williston Basin marks another milestone for Australia as one of the world's resources powerhouses.

The Beetaloo has over 2000m of hydrocarbon rich sediments and is a giant, underexplored frontier basin that has all the elements of a world-class hydrocarbon system. The basin is unusual in the 21st Century petroleum industry in that it is a very large under-explored basin containing a thick sequence of relatively undeformed Proterozoic age sediments.

The basin contains a well-documented oil-prone source rock that has generated oil. Oil of 35°API gravity has been recovered from earlier wells that failed to find productive reservoirs. A dozen large structural leads have been identified from limited seismic control. The current Shenandoah-1 well will test the oil and gas potential of eight zones within the 2000m hydrocarbon column.