Falcon Oil & Gas Ltd. Receives an Updated Independent Resource Assessment From RPS Scotia for Its Mako Trough Deep Gas Project i
06 May 2008 - 1:05AM
PR Newswire (US)
DENVER, May 5 /PRNewswire/ -- Falcon Oil & Gas Ltd. (TSXV: FO)
announced that it has received a new, updated, independent report
from RPS Scotia disclosing an updated resource estimate of the Mako
Trough Pannonian Basin Gas Accumulation (the "Mako Trough") within
the production license area of Falcon's deep gas exploration
project in southeastern Hungary (the "RPS Scotia Report"). The RPS
Scotia Report is compliant with National Instrument 51-101
"Standards of Disclosure for Oil and Gas Activities" ("NI 51-101").
The RPS 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 and does not represent an estimate of reserves.
Based on all available data, RPS Scotia has assigned the following
probabilistic estimation of potentially recoverable contingent
resources in the Szolnok formation, the Lower Endrod, the Basal
Conglomerate and the Synrift Sequence. The RPS Scotia Report
measures the Mako Trough in trillions of cubic feet (Tcf) and
millions of barrel oil (mmbo): Probability Greater Than P90 (90%)
P50 (50%) P10 (10%) Probabilistic estimation of potentially
recoverable 25.8 Tcf 43.9 Tcf 68 Tcf contingent resources (1) (2)
42.6 mmbo 97.8 mmbo 202.7 mmbo 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 of March 31st,
2008, the effective date of the RPS Scotia Report. A copy of the
RPS Scotia Report is available at http://www.sedar.com/. About The
Scotia Group Founded in 1981, The Scotia Group recently joined The
RPS Group and is now known as RPS Scotia, Inc. RPS Scotia consists
of approximately 20 geoscience and petroleum engineering
professionals and has offices in Houston and Dallas. RPS Scotia
provides advisory services to the oil and gas industry specializing
in technical and economic analysis of projects, properties and
companies. In addition to advisory services RPS Scotia provides
traditional consulting services including integrated field studies,
reserves reporting, geology, geophysics, and reservoir engineering.
Clients include banks, financial institutions, the legal community,
government agencies, and major and independent international energy
organizations including ChevronTexaco, EnCana, Petrobras, Reliance
Industries, Repsol Exploration, Pemex Exploracion y Produccion,
Woodside Petroleum and the U.S. Department of Energy. The RPS Group
has over 164 professionals located worldwide, in the U.S.; Canada,
the U.K., Australia, Russia, and Singapore and provides similar and
expanded capabilities including sedimentology, environmental
services, and geohazards. 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
Exploration and Production, LLC, and in Romania through its
wholly-owned subsidiary JVX Energy Corporation. Further information
about Falcon is available at http://www.falconoilandgas.com/.
Falcon Oil and Gas Ltd. Investor and Public Relations: Alexander
Hubbard-Ford +1 303-951-1116 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
http://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.
DATASOURCE: Falcon Oil & Gas Ltd. CONTACT: Alexander
Hubbard-Ford of Falcon Oil & Gas Ltd., +1-303-951-1116 Web
site: http://www.falconoilandgas.com/
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