(TSXV Symbol: FO)
VANCOUVER, July 17 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) (the
"Corporation") announced today that MGI Securities Inc. ("MGI") has agreed to
a waiver (the "Waiver") to release certain common shares of the Corporation
that were placed into escrow pursuant to an escrow agreement, a copy of which
is available at www.sedar.com (the "Escrow Agreement") in connection with the
Corporation's acquisition of the shares of Mako Energy Corporation completed
on April 1, 2005. The Waiver provides for the immediate release of certain
common shares of the Corporation from escrow as well as for a reduction in the
term of the escrow for the remaining common shares held in escrow. The
reduction shortens the term of the escrow from six years to the three year
minimum escrow period required by the policies of the TSX Venture Exchange.
Under the original terms of the Escrow Agreement, 140,000,000 common
shares of the Corporation were placed in escrow on April 1, 2005 with such
shares being released from escrow in tranches every six months for a period of
six years, which to date has provided for the release of 14,000,000 common
shares. As a result of the Waiver, an additional 42,000,000 common shares will
be released from escrow immediately as freely tradeable common shares, with
the remaining 84,000,000 common shares being released from escrow as freely
tradeable common shares in four equal tranches. The first of such four
tranches is scheduled for October 12, 2006 with the remaining three tranches
to occur in subsequent six month intervals ending on April 12, 2008.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is a British Columbia corporation which is in the
business of oil and gas exploration and production. It has operations in
Hungary through its wholly-owned subsidiary TXM Oil and Gas Exploration, and
in Romania through its wholly-owned subsidiary JVX Energy Corporation.
Further information about Falcon is available at www.falconoilandgas.com.
In the interests of providing Company shareholders and potential
investors with information regarding the Company, including the Company's
assessment of its and its subsidiaries' future plans and operations, certain
statements included in this press release may constitute forward-looking
information or forward-looking statements (collectively, "forward-looking
statements"). All statements contained herein that are not clearly historical
in nature are forward-looking, and the words "anticipate", "believe",
"expect", "estimate" and similar expressions are generally intended to
identify forward-looking statements. Similarly, forward-looking statements in
this press release include, but are not limited to anticipated developments of
the Company's drilling project in Hungary and the timing thereof, the
Company's drilling project in Romania and the timing thereof, capital
investment levels and the allocation thereof, pipeline capacity, government
royalty rates, reserve and resources estimates, the level of expenditures for
compliance with environmental regulations, site restoration costs including
abandonment and reclamation costs, exploration plans, acquisition and
disposition plans including farmout plans, net cash flows, geographic
expansion and plans for seismic surveys. In addition, please note that
statements relating to "reserves" or "resources" are deemed to be
forward-looking statements, as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves and resources described
can be profitably produced in the future. Such statements represent the
Company's internal projections, estimates or beliefs concerning, among other
things, an outlook on the estimated amounts and timing of capital
expenditures, anticipated future debt levels and incentive fees or revenues or
other expectations, beliefs, plans, objectives, assumptions, intentions or
statements about future events or performance. These statements are only
predictions. Actual events or results may differ materially. Although the
Company believes that the expectations reflected in the forward-looking
statements are reasonable, it cannot guarantee future results, levels of
activity, performance or achievement since such expectations are inherently
subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors could cause the Company's actual
results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company and the
foregoing list of important factors is not exhaustive. These forward-looking
statements are made as of the date hereof disclaims any intent or obligation
to update publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise. Company shareholders and
potential investors should carefully consider the information contained in the
Company's filings with Canadian securities administrators at www.sedar.com
before making investment decisions with regard to the Company.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
