FO Falcon Oil and Gas Ltd

Falcon Oil & Gas Ltd. (TSX VENTURE:FO) (AIM:FOG) (ESM:FAC) ("Falcon" or the
"Company"), announces that it has executed a conditional agreement with Sweetpea
Petroleum Pty Ltd, a wholly-owned subsidiary of PetroHunter Energy Corporation
("Sweetpea") (the "Agreement"), to acquire its 50 million shares or 24.22%
interest in Falcon Oil & Gas Australia Limited ("FOGA") (the "Share Purchase"). 


FOGA is a subsidiary of Falcon and is the registered holder of four exploration
permits in the Beetaloo Basin, Northern Territory, Australia. Falcon currently
owns 150 million shares in FOGA representing 72.68% of the issued share capital
of FOGA. Upon completion of the Agreement, Falcon's shareholding in FOGA will
increase to 200 million shares representing 96.90% of the issued share capital
of FOGA.


The terms of the Agreement include a cash consideration of US$3 million together
with the issue of 97.86 million Falcon shares ("New Falcon Shares") to Sweetpea.
Based on Falcon's share price, at the time the Share Purchase was agreed between
the parties of CAD 0.20, the total value of the consideration is CAD 22.6
million. Upon completion of the Agreement, Sweetpea's shareholding in the
enlarged share capital of Falcon will be 10.7%. 


The New Falcon Shares will be held in an Escrow account with the New Falcon
Shares locked up for three years, and Sweetpea, commencing on the date of
closing, being permitted to sell 15% each year during the lock up period. 


The Agreement is conditional on, inter alia, approval by a requisite majority of
FOGA shareholders entitled to vote. A Notice of Meeting will be sent to the
shareholders of FOGA once regulatory approval of the deal has been received from
the Australian Securities & Investments Commission and it is hoped that the
Share Purchase can then be completed by the end of June 2013. The Share Purchase
is also subject to TSX Venture Exchange approval.


Philip O'Quigley, CEO of Falcon commented: 

"We are delighted with this opportunity to consolidate further our interest in
our significant asset in the Beetaloo Basin, Northern Territory, Australia. We
remain absolutely confident and excited by the resource potential of the
Beetaloo Basin and are hopeful that Hess will make a positive election to
participate in the planned drilling campaign."


About Falcon Oil & Gas Ltd. 

Falcon 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 spread between Australia, South Africa and
Hungary. Falcon 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.


About Falcon Oil & Gas Australia Limited. 

FOGA holds four Exploration Permits ("EP's") covering 7 million acres in the
Beetaloo Basin, Northern Territory, Australia. In April 2011, Falcon entered
into an agreement with Hess Australia (Beetaloo) Pty Ltd ("Hess") covering three
of the EP's whereby Hess made an initial payment of $17.5 million to FOGA and
committed to spending an additional $40 million acquiring 3,600km of seismic.
Hess completed the seismic acquisition in January 2013 at an estimated cost of
$55m. Hess may elect to drill and evaluate five wells to earn a 62.5% equity
stake in the licence area covered by the three permits but excluding the 100,000
acres around the Shenandoah well (Falcon fully carried). Hess has until the 30th
June 2013 to make this election. 


For further information on Falcon Oil & Gas Australia Limited please visit
www.falconaustralia.com.au.


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. Actual
results might differ materially from results suggested in any forward-looking
statement. Falcon 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 Falcon. Additional information identifying risks and uncertainties
is contained in Falcon's filings with the Canadian securities regulators, which
filings are available at www.sedar.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Falcon Oil and Gas Ltd
Head Office
+353 1 417 1900


Falcon Oil and Gas Ltd
Philip O'Quigley
CEO
+353 87 814 7042


FTI Consulting
Billy Clegg
+44 207 269 7157


FTI Consulting
Edward Westropp
+44 207 269 7230


FTI Consulting
Natalia Erikssen
+44 207 269 9348


Davy
John Frain / Anthony Farrell
+353 1 679 6363


GMP
James Pope / Alexandra Carse
+442076472835

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