Falcon received $17.5 million plus another $2.5 million from Hess on July 13 2011.

Hess will pay Falcon a further $2 million for the testing data acquired at the Shenandoah-1 well.

That’s $22 million in all.

Under the agreement, Hess will spend a further $40 million on seismic acquisition program in the years 2011 and 2012.

Jul. 13, 2011 (Marketwire Canada) --

DENVER, COLORADO -- Falcon Oil & Gas Ltd. (TSX VENTURE:FO) ("Falcon") announces that, further to its press release dated February 22, 2011, the Beetaloo Basin Evaluation and Participation Agreement between Falcon Oil & Gas Australia Limited ("Falcon Australia") and Hess Australia (Beetaloo) Pty Limited ("Hess Australia") dated April 28, 2011 (the "Agreement") is now in effect and the seismic survey phase of the project will begin once the necessary regulatory permits are finalized.

On closing (July 13, 2011) Hess Australia made a US$17.5 million payment to Falcon Australia. Hess Oil and Gas Holdings Inc. ("Hess") also paid Falcon US$2.5 million and Falcon issued Hess a warrant exercisable for 10,000,000 common shares in the capital of Falcon ("Common Share") at a price of CDN$0.19 per Common Share for a period from November 14, 2011 until January 13, 2015. Upon receipt of all necessary regulatory permits, Hess Australia will commence the process of acquiring seismic data over Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area"). After completion, processing and interpretation of the seismic data, Hess Australia may elect to acquire 62.5 percent ownership in the Agreement Area and continue to the next phase of the work program which includes conducting a five well program to explore and appraise the Agreement Area, beginning in 2012.

http://tmx.quotemedia.com/article.php?newsid=42910518&qm_symbol=FO:CA

“Under the terms of the agreement Hess will undertake a US$40 million seismic acquisition program beginning in 2011. After completion, processing and interpretation of the seismic data Hess can elect to continue to the next phase of the work program which includes conducting a five well program to explore and appraise the agreement area, beginning in 2012. Hess will cover the full cost of this work program.

Falcon Australia plans to test the prospective intervals in the Shenandoah-1 wellbore in the third quarter of 2011. Upon conclusion of the testing Hess will pay Falcon Australia US$2 million for the data acquired.”

http://tmx.quotemedia.com/article.php?newsid=38787962&qm_symbol=FO:CA