BUDAPEST, Hungary, Sept. 25 /CNW/ -- Falcon Oil and Gas Ltd. (TSXV: FO)
announced today that it has received a new independent report (the "Scotia
Report") disclosing a resource estimate of the Mako Trough Pannonian Basin Gas
Accumulation (the "Mako Trough"), Falcon's deep gas exploration project in
southeastern Hungary.
The Scotia Report is compliant with National Instrument 51-101 "Standards
of Disclosure for Oil and Gas Activities" ("NI 51-101").
The Scotia Group, Inc. (the "Scotia Group") of Dallas, Texas was
commissioned by Falcon to independently describe and quantify the resource of
the Mako Trough using all data available as of an effective date of August 15,
2006. The Scotia Group report is limited to an estimation of the possible
range of hydrocarbon volume that theoretically may be produced and does not
include any economic modeling or valuation of the resources. The Scotia
Report focuses on Basin Centered Gas Accumulation ("BCGA") unconventional
resources, and does not address any oil or gas resources that may occur in
associated conventional or unconventional reservoirs outside of the BCGA. The
Scotia Report on the resource of the Mako Trough describes a probabilistic
distribution of the potentially recoverable portion of "Contingent Resources"
as defined by the Canadian Oil and Gas Evaluation Handbook (COGEH) and does
not represent an estimate of reserves.
Based on all available data, the Scotia Group has assigned the following
probabilistic estimation of potentially recoverable Contingent Resources to
the Falcon interests in the Szolnok formation, the Lower Endrod, the Basal
Conglomerate and the Synrift Sequence. The Scotia Report measures the Mako
Trough in trillions of cubic feet (Tcf):
<<
Probability Greater Than
P90 (90%) P50 (50%) P10 (10%)
Contingent Resource(1)(2) -
(estimated recoverable 21.8 Tcf 54.9 Tcf 116.1 Tcf
portion)
Notes:
(1) The resource estimate has been conducted using the definitions
specified by the Canadian Oil and Gas Evaluation Handbook. The Mako
Trough Resource falls under the "Discovered Resources" classification.
The values refer to the probabilistically estimated recoverable
fraction of "Contingent Resources" within that classification.
Contingent resources are those quantities of oil and gas estimated on
a given date to be potentially recoverable from known accumulations
but are not currently economic. The economic nature of this resource
has not yet been assessed due to the early stage of data gathering for
the Mako Trough resource. The recoverable portion of this "Contingent
Resource" is contingent upon the demonstration of productive
capability of the various zones of interest through well testing and
longer term production testing which has not occurred as of the
effective date of the report.
(2) Estimates are as at August 15, 2006, the effective date of the Scotia
Report.
>>
"The Scotia Group is an international oil and gas advisory service
organization that has significant expertise and experience in evaluating
unconventional gas resources throughout the world, including recent studies
assessing unconventional gas resources for a major, multi-national exploration
and production company," said Marc A. Bruner, Chairman and CEO of Falcon Oil &
Gas Ltd. "We are pleased to have their expert assessment of resources located
in the Mako Trough." A copy of the Scotia Report is available at
www.sedar.com.
<<
About The Scotia Group
>>
Founded in 1981, The Scotia Group is an independent firm providing
advisory services to the oil and gas industry. The firm specializes in
technical and economic analysis of projects, properties and companies,
providing clients with traditional consulting services and strategic advice.
The Scotia Group has offices in Dallas, Houston, and Reynosa, Mexico, and
maintains professional associations with a number of respected domestic and
international firms. The Scotia Group's clients include banks, financial
institutions, the legal community, government agencies, and major and
independent international energy organizations including ChevronTexaco,
EnCana, Petrobras, Repsol Exploration, Pemex Exploracion y Produccion,
Woodside Petroleum and the U.S. Department of Energy.
<<
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.
<<
Contacts:
Falcon Oil & Gas Ltd.
Marc A. Bruner, President, Chairman & CEO
Michael K. Lam, Corporate Development, North America
(416) 303-8810
Alexander Hubbard-Ford, Corporate Development Europe
+44 (0) 79 8448 1541
Canada -- Brisco Capital Partners Corp.
Graeme Dick
403-313-9663
United Kingdom - 4C-Burvale
Carina Corbett
John Carrick-Smith
+44 (0) 20 7907 4761/0
>>
Falcon's discovered resources are not reserves. Only those quantities of
oil and gas that are anticipated to be economically recoverable from
discovered resources are classified as reserves. Until such time as Falcon's
discovered resources are proven to be reserves, there is a risk that Falcon
may not achieve ongoing operations from which it may generate significant
revenue. There is no certainty that it will be technically or economically
viable to produce any portion of the reported Contingent Resource.
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 made as of the date hereof disclaim 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.
