Ryder Scott Reports Unrisked Prospective Resource Best Estimates of 19 Billion Barrels of Oil and 64 Trillion Cubic Feet of Gas in Australian Beetaloo Basin Property
Company Moves to Re-enter Basin's Shenandoah 1 Well

DENVER, Aug. 18 /PRNewswire/ -- Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" or the "Company"), a global energy company focused on acquiring, exploring and developing large acreage positions of unconventional and conventional oil and gas resources, today announced the results of the recently completed Ryder Scott Company-Canada Resource Analysis Report ("Report") on the Company's Beetaloo Basin Project in the Northern Territory (NT), of Australia as of July 1, 2009.

Based on all available data, Ryder Scott has prepared an evaluation of the hydrocarbon resource potential pertaining to Falcon's interests in the Beetaloo Basin which consist of four Exploration Permits comprising approximately 28,200 square kilometres (7 million gross acres), covering the majority of the Beetaloo Basin and basin margin highs. Through its wholly owned Australian subsidiary, Falcon Oil & Gas Australia Pty Ltd, the Company owns an undivided 75 percent working interest in the Permits, and is the operator of the Permits.

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The Beetaloo Basin

The Beetaloo Basin covers approximately 8.8 million acres / 35,600 km2 and is patently underexplored. Current exploration operator, Sweatpea Corporation is undertaking major basin studies as part of a renewed exploration effort after a break of 15 years. Unconventional fractured shale oil/gas plays and basin centred gas plays are being prioritised in addition to conventional structural plays. Farm-in opportunities are being made available as the program progresses to seismic acquisition.

The basin contains more than 3,000 m of Precambrian and younger sediments including several thick, rich source rock intervals, the richest of which has reportedly more than 100 m of black, generally oil-prone, shale with a total organic carbon content which typically ranges from 4 to 7% but which can be as high as 12%.

Three thick sandstone sequences also occur within the basin which may represent potential reserves interbedded with the source rock intervals. Large, untested structural leads are also thought to be present. Within the basin there is only about 2,700 km of 2D seismic and 11 wells. Most of the wells are stratigraphic tests, drilled during the late-80s to early-90s by the petroleum arm of a large mining company. Few, if any, of the wells were located with reference to seismically defined structural closures. Nevertheless, oil shows have been reported in several of these holes and free oil has been reportedly recovered on test.

International oil producing areas which are considered to be broad analogues to the Beetaloo Basin occur in North America, eastern Siberia and the Middle East. The upside potential is large but, as yet, unproven, because, despite appearing to have the ingredients for the generation and entrapment of oil, the area is, for all practical purposes, vastly underexplored.

Quite a few things have changed during the 15 or more years that have passed since the last time there was a serious attempt to look for oil in the Beetaloo Basin. Substantial infrastructure has been established in the form of a much improved road link and a new rail line to Darwin, a new gas pipeline has been constructed, and Aboriginal land right agreements have been executed.

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The Beetaloo Sub-basin (2 CABS papers):
• A Mesoproterozoic petroleum system (approx. 1400 million years old) is well documented. Over the last 10 to 15 years studies of these petroleum systems by Geoscience Australia, and to some extent the NTGS petroleum branch, has led to an enhanced understanding of the basin’s potential. The basin is currently being explored by Sweetpea Corporation and initial studies have been encouraging; they will be followed up by a seismic program due to commence in the next 12 months.
• This Mesoproterozoic basin includes rich petroleum systems based on Kyalla Formation and Velkerri Formation source rocks and reservoirs in the Bessie Creek, Moroak and Jamison Sandstones.
• The main hindrance to exploration is the long geological time spans required for hydrocarbon preservation, but maturation/expulsion studies that are ongoing indicate generation and expulsion may have occurred far more recently than previously thought. Unconventional play types such as fractured shale reservoirs and basinal gas plays are also being investigated.

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Kyalla Shale
Up to 250 meters thick with oil-prone organic matter, TOC typically 2-3% generally mature in Basin

Middle Velkerri Shale
140 meters of oil-prone, organic-rich shale in the McManus #1 well (3 high gamma ray intervals) TOC up to 12%, typically 4-7%, generally mature

Analogs suggest 100’s of MMBBLS and TCF’s–Paleozoic Williston Basin, North America: the Arnold Arch resembles the Nesson Anticline in size and geometry–Precambrian-sourced production on the southern Arabian Peninsula, Eastern Siberia

Five potential source rock intervals have been recognised: The Kyalla Member of the McMinn Formation, the upper, middle and lower units of the Velkerri Formation and the Lansen Creek Shale. The best source interval is the middle Velkerri Formation which contains oil-prone Type II kerogen. The Kyalla Member also comprises good quality (Type II/III kerogen; oil and gas prone) source material whereas poor to fair, and occasionally good, source rock potential is evident in the Lansen Creek Shale, and upper and lower units of the Velkerri Formation.

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Oil-to-source correlations identify the lower Velkerri Formation as the likely source of the second phase of oil reservoired in the Bessie Creek Sandstone. The elevated maturity of these oils suggests that an additional source rock deeper in the stratigraphic section, such as the Barney Creek Formation, may have contributed the first phase of hydrocarbons.

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They are an OTC penny stock trading today at so far 70,000 shares, 40 odd cents a share or about $28,000 in trading today.

Sounds like an attempt by fly-by-night pink sheet co to pump up share price. I've seen it before, e.g. BSSM, DVAR.

In a few years they may be in the nursing home business.

Falcon Oil & Gas intends to deepen and test the Shenandoah-1 exploration well in the McArthur Basin of Australia after an analysis showed large oil and gas potential. Experts estimate the site contains 193 billion stock tank barrels of undiscovered oil in place and 385 trillion standard cubic feet of undiscovered gas in place. Falcon controls a 75% stake in 12 wells in the basin and operates four Northern Territory exploration permits covering 7 million acres. Oil & Gas Journal (08/19)

http://www.smartbrief.com/news/api/storyDetails.jsp?issueid=80801D55-6557-467F-B0E0-1FBFBEB7F308&copyid=189A987F-CD08-4B42-98E8-1F3D65D0509B

Still who has bought shares on this news? OF2, you going hog wild or just posting on the internet?

That was AntiDoomer who posted that, not me.

Shale is enormously unpopular in Australia and will get no Government support in the forseeable future. Even if the reported shale finds are true the Company would be well advised not to focus on them due to the attached stigma.