Falcon Oil & Gas Ltd.: Interim Results for ...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG
ISE SYMBOL:  FAC

August 27, 2015

Falcon Oil & Gas Ltd.: Interim Results for the Six Months Ended 30 June 2015

DUBLIN, IRELAND--(Marketwired - Aug. 27, 2015) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC)
("Falcon" or the "Company" or the "Group") is pleased to announce its financial results for the three and six
months ended 30 June 2015.

The following should be read in conjunction with the complete Interim Financial Statements and the accompanying
Management's Discussion and Analysis for the three and six months period ended 30 June 2015 filed with the TSX
Venture Exchange. These filings are available at www.sedar.com and on Falcon's website at
www.falconoilandgas.com.

Highlights:

Operational

--  Commencement of the Australian nine well exploration and appraisal
    programme, planned from 2015 to 2018, with the spudding of Kalala S-1 on
    14 July 2015.
--  Processing of Falcon's exploration license application in South Africa's
    Karoo Basin continues to progress and the South African Department of
    Mineral Resources ("DMR") is expected to issue licences in 2015.

Financial highlights

--  Strong financial position, debt free with cash of US$10.5 million.
--  Continued focus on strict cost management and efficient operation of the
    portfolio.
--  G&A expenses decreased 44% period on period in the six months ended 30
    June 2015 to US$1.3 million (2014: US$2.2 million).

Philip O'Quigley, CEO of Falcon Oil & Gas commented:

"It has been an exciting first half of 2015 for the Company with the commencement of our fully funded 2015
three well drilling programme; part of our Australian nine well drilling programme in the Beetaloo basin, with
the spudding of our first well, Kalala S-1. Operations are ongoing and we should be in a position to update the
market shortly.

Additionally in South Africa, we continue to make steady progress and expect the DMR to issue the Company with
an exploration licence before the end of this year.

In this low oil price environment Falcon continues to be differentiated by its strong cash position, strict
cost management, a funded drilling programme and high quality assets; thus Falcon is well placed to deliver
shareholder value."

Australia - Commencement of initial 2015 three well fully-funded drilling and evaluation programme

On 15 July 2015, the Group announced the spudding of the Kalala S-1 well in the Beetaloo Basin, Australia.
Kalala S-1 is the first of Falcon's fully funded and uncapped, 2015 three well drilling and evaluation
programme targeting the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality in the
Beetaloo Basin. The 2015 three well programme is the commencement of a nine well exploration and appraisal
programme planned from 2015 to 2018.

Kalala S-1 is located within exploration permit 98, with access from the existing Carpentaria Highway, and will
be drilled to a total depth of approximately 2,800 meters. Rig 185, an ATS 400, from Saxon Energy Services
Australia Pty. Ltd, a Schlumberger company, has commenced drilling which was estimated to take approximately 35
to 50 days. Kalala S-1 will be operated by Origin Resources Limited ("Origin") (35%) with partners Sasol
Petroleum Australia Limited ("Sasol") (35%) and Falcon (30%).

Falcon is fully carried for all 2015 drilling and evaluation costs, retaining its 30% interest in 4.6 million
gross acres of the Beetaloo Basin with co-venture partners Origin and Sasol.

The principal objectives of the 2015 three well drilling programme are to:

--  penetrate the Middle Velkerri formation to assess hydrocarbon saturation
    and reservoir quality;
--  evaluate oil versus gas maturity and determine the most prospective
    areas and depth window;
--  provide further information on the aerial distribution of the target
    Middle Velkerri formation; and
--  collect data points for subsequent vertical/horizontal drilling,
    completion and production testing.

Formation evaluation and reservoir characterisation will be carried out from these initial three wells through
petrophysical interpretation, core analysis, geomechanical studies and stimulation design.

South Africa - processing of the exploration licence by the Petroleum Agency of South Africa ("PASA") continues
to progress

The PASA continues to progress the Company's application for a shale gas exploration licence in South Africa's
Karoo Basin. The Company expects that the DMR will issue Falcon with a licence to explore for shale gas before
the end of 2015.

Background

Falcon was granted a Technical Cooperation Permit in 2009 covering 7.5 million (30,327 km2) acres in the
southern part of the Karoo Basin. The Company has a cooperation agreement (as announced on 12 December 2012)
with Chevron Business Development South Africa Limited ("Chevron"), which enables the Group to work with
Chevron for a period of five years in jointly obtaining exploration licences.

Hungary - review of operations

Falcon continues to review its operation and future plans in Hungary, evaluating all options available to the
Group to deliver shareholder value. The Group maintains its 100% interest in the Mako Trough.

Financial review

Falcon's cash and cash deposits balance as at 30 June 2015 was US$10.5 million (31 March 2015: US$11.5
million).

Falcon incurred a loss of US$1.6 million during the six months ended 30 June 2015, decreasing from a loss of
US$2.4 million during the six months ended 30 June 2014. General and Administrative expenses decreased 44% in
the six months ended 30 June 2015 to US$1.3 million (2014: US$2.2 million). The decrease reflects a continued
focus on strict cost management and efficient operation of the portfolio.

Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statement of Operations and Comprehensive
Loss
(Unaudited)

----------------------------------------------------------------------------
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                        Three months Three months   Six months   Six months
                            ended 30     ended 30     ended 30     ended 30
                           June 2015    June 2014    June 2015    June 2014
                               $'000        $'000        $'000        $'000
----------------------------------------------------------------------------
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Revenue
Oil and natural gas
 revenue                           1            7            4           17
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                                   1            7            4           17

Expenses
Exploration and
 evaluation expenses             (76)        (206)        (452)        (404)
Production and operating
 expenses                         (5)          (8)         (11)         (15)
Depreciation                      (9)         (30)         (17)         (73)
General and
 administrative expenses        (649)      (1,231)      (1,265)      (2,250)
Share based compensation         (39)         (12)        (201)        (207)
Foreign exchange (loss)
 / gain                         (196)         (22)         725          (55)
Other income                       -          162            -          299
----------------------------------------------------------------------------
                                (974)      (1,347)      (1,221)      (2,705)
----------------------------------------------------------------------------

Results from operating
 activities                     (973)      (1,340)      (1,217)      (2,688)

Fair value (loss) / gain
 - outstanding warrants         (397)        (768)        (269)         223

Finance income                    24           69            7          128
Finance expense                  (30)         (35)        (134)         (70)
----------------------------------------------------------------------------
Net finance (expense) /
 income                           (6)          34         (127)          58

----------------------------------------------------------------------------
Loss and comprehensive
 loss for the period          (1,376)      (2,074)      (1,613)      (2,407)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Loss and comprehensive
 loss attributable to:

Equity holders of the
 company                      (1,375)      (2,069)      (1,610)      (2,398)
Non-controlling
 interests                        (1)          (5)          (3)          (9)

----------------------------------------------------------------------------
Loss and comprehensive
 loss for the period          (1,376)      (2,074)      (1,613)      (2,407)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Loss per share
 attributable to equity
 holders of the company:

Basic and diluted        (0.001 cent) (0.002 cent) (0.002 cent) (0.003 cent)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Falcon Oil & Gas Ltd.
Consolidated Statement of Financial Position
(Unaudited)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                               At 30 June    At 31 December
                                                     2015              2014
                                                    $'000             $'000
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Assets
Non-current assets
Exploration and evaluation assets                  39,616            39,619
Property, plant and equipment                          86               103
Trade and other receivables                            27               104
Restricted cash                                     2,282               331
----------------------------------------------------------------------------
                                                   42,011            40,157
----------------------------------------------------------------------------

Current assets
Cash and cash on deposit                           10,526            14,753
Trade and other receivables                           495               443
----------------------------------------------------------------------------
                                                   11,021            15,196
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Total assets                                       53,032            55,353
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Equity and liabilities

Equity attributable to owners of the
 parent
Share capital                                     382,853           382,853
Contributed surplus                                42,861            42,660
Retained deficit                                 (383,959)         (382,349)
----------------------------------------------------------------------------
                                                   41,755            43,164
Non-controlling interests                             710               713
----------------------------------------------------------------------------
Total equity                                       42,465            43,877
----------------------------------------------------------------------------

Liabilities
Non-current liabilities
Decommissioning provision                           8,655             9,493
----------------------------------------------------------------------------
                                                    8,655             9,493
----------------------------------------------------------------------------

Current liabilities
Accounts payable and accrued expenses               1,129             1,469
Derivative financial liabilities                      783               514
----------------------------------------------------------------------------
                                                    1,912             1,983
----------------------------------------------------------------------------
Total liabilities                                  10,567            11,476
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Total equity and liabilities                       53,032            55,353
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Falcon Oil & Gas Ltd.
Interim Condensed Consolidated Statement of Cash flows
(Unaudited)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                   Six months ended 30 June

                                                     2015              2014
                                                    $'000             $'000
----------------------------------------------------------------------------

Cash flows from operating activities
Net loss for the period                            (1,613)           (2,407)
Adjustments for:
  Share based compensation                            201               207
  Depreciation                                         17                73
  Fair value loss / (gain) - outstanding
   warrants                                           269              (223)
  Net finance expense / (income)                      127               (58)
  Effect of exchange rates on operating
   activities                                        (725)               55
Change in non-cash working capital:
  Trade and other receivables                          26              (279)
  Accounts payable and accrued expenses                90               113
  Restructuring spend                                (368)                -
Interest received                                       7                26
----------------------------------------------------------------------------
Net cash used in operating activities              (1,969)           (2,493)

Cash flows from investing activities
Increase in restricted cash                        (1,991)                -
Exploration and evaluation assets                       -              (538)
Property, plant and equipment                           -                (6)
----------------------------------------------------------------------------
Net cash used in investing activities              (1,991)             (544)

Change in cash and cash equivalents                (3,960)           (3,037)
Effect of exchange rates on cash & cash
 equivalents                                         (267)              119

Cash and cash equivalents at beginning
 of period                                          8,753             8,431

----------------------------------------------------------------------------
Cash and cash equivalents at end of
 period                                             4,526             5,513
----------------------------------------------------------------------------

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr.
Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary and his PhD at the Vrije
Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.

All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and
development of conventional and unconventional oil and gas assets, with the current portfolio focused in
Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and
headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information. This information is based
on current expectations that are subject to significant risks and uncertainties that are difficult to predict.
Such information may include, but is not limited to, comments made with respect to the type, number and
objectives of the wells to be drilled in the Beetaloo basin, Australia, the prospectivity of the Middle
Velkerri shale play and the prospect of the exploration programme being brought to commerciality and comments
made with respect to the granting of an exploration right in South Africa. Actual results might differ
materially from results suggested in any forward-looking statements. The Company assumes no obligation to
update the forward-looking statements, or to update the reasons why actual results could differ from those
reflected in the forward looking-statements unless and until required by securities laws applicable to the
Company. Additional information identifying risks and uncertainties is contained in the Company's filings with
the Canadian securities regulators, which filings are available at www.sedar.com.

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil & Gas Ltd.
[phone]

OR

Falcon Oil & Gas Ltd.
Philip O'Quigley, CEO
[phone]

OR

Falcon Oil & Gas Ltd.
Michael Gallagher, CFO
[phone]

OR

Falcon Oil & Gas Ltd.
John Craven, Non-Executive Chairman
[phone]

OR

Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell
[phone]

OR

GMP Securities Europe LLP (Joint Broker)
Rob Collins / Emily Morris
[phone]

OR

CAMARCO
Billy Clegg
[phone]

OR

CAMARCO
Georgia Mann
[phone]

Falcon Oil & Gas Ltd.