PetroMagdalene Announces Copa B-1 Discovery

- PetroMagdalene Announces Copa B-1 Discovery

Monday, September 12, 2011
PetroMagdalena Energy Corp.

PetroMagdalena Energy Corp. on Monday announced that it has discovered a new light oilfield with the Copa B-1 exploration well, with the well testing 1,045 bopd of 39.3 degrees API light oil over the initial 3-day production test. This represents 597 bopd gross working interest share for the Company.

Luciano Biondi, Chief Executive Officer of PetroMagdalena stated, "I am excited as this has a direct impact on our bottom line and follows directly after our Petirrojo-1 discovery, which has produced at an average of 1,831 bopd over the past 20 days. This is a very positive drilling result as it significantly improves the potential of the remaining exploration acreage on the Copa trend in the Cubiro block, our core producing asset in Colombia, and the rig is now moving to spud the Copa AS-1 exploration well."

Located in the Cubiro Block of the Llanos Basin, the Copa B-1 well, in which the Company holds a 57% working interest, was spudded on August 18, 2011 and directionally drilled to a total depth of 6,862 feet measured depth ("MD"). The top of the C5 and C3 Carbonera sections were encountered at depths of 5,251 feet (MD) and 5,045 feet (MD), respectively. Well logs indicate a total of 41 feet of net oil sand, 24 feet in three C5 sands, and 17 feet in two C3 sands. Porosities range from 24% to 28% in the C5 and 27% to 29% in the C3 sands. After perforating 17 feet in the two lower C5 sands and installing an electric submersible pump ("ESP"), the well produced at an average rate of 1,067 bopd of 39.3 degrees API oil over the latest 24-hour period at a BS&W of 0.9% and a downhole pump intake pressure of 1623 psi, a 23.2% drawdown. The well testing program is ongoing and final results will be provided.

Based on seismic interpretations, the accumulation discovered by Copa B-1 is a 1.3 kilometer-long structure with an estimated closure of 140 acres, corresponding to the typical exploration play in the Llanos Basin. The Copa B structure is on trend with the Company's Copa Field, 4 kilometers to the north, which was brought on production last year with the Copa-1 well, which was completed in two C5 sands from the same stratigraphic level as the ones tested in Copa B-1 well, and has produced 200,000 barrels of 40 degrees API oil over the past 16 months.

In Cubiro Block C, the Company is currently moving the drilling rig to drill the Copa AS-1 exploration well from the same operating pad with a target total depth of 7,716 feet (MD). Copa AS-1 will test a similar structure as Copa B, on trend with the Copa Field and immediately north of the Copa B discovery. Once the drilling of the Copa AS-1 well is terminated, a work over rig will be mobilized to test this well and the rest of the C5 and C3 sands penetrated by the Copa B-1 well.

PETIRROJO

The Petirrojo-1 discovery has produced at an average rate of 1,831 bopd (Company share, 1,282 bopd before royalties) over the past 20 days with a sustained pump intake pressure.

TOPOYACO

On August 31, 2011, Trayectoria Oil & Gas, the operator for the Topoyaco Block, spudded the Yaraqui-1X well in the central part of the block. The well is planned to reach a total depth of 10,509 feet MD, or 9,402 feet true vertical depth (TVD), or 8,484 feet TVDSS, and is targeting the Cretaceous Villeta and Caballos formations in a sub-thrust structure called Prospect "D". This prospect is a sub-thrust structure independent from previously drilled structures "B" and "C" in the block. Pacific Rubiales Energy Corp. recently announced that preliminary prospective resources (best estimate) for Prospect "D" are 51 MMbbls.

As previously announced, Pacific Rubiales has requested the approval of the ANH to become the operator of the Topoyaco Block, which approval remains pending.

SENIOR SECURED SERIES A NOTES AND ACCOMPANYING WARRANTS

On September 8, 2011, 31,050 senior secured series A notes and 1,330,714 share purchase warrants, issued pursuant to the Company's debt financing of C$31,050,000 that closed on May 5, 2011, began trading on the TSX Venture Exchange under the symbols "PMD.DB" and "PMD.WT", respectively.

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Abraxas Announces New CFO

- Abraxas Announces New CFO

Friday, September 09, 2011
Abraxas Petroleum Corporation

Abraxas Petroleum Corporation today announced that Barbara M. Stuckey has been elected to serve as Vice President and Chief Financial Officer and George William “Bill” Krog, Jr. has been elected to serve as Chief Accounting Officer and Treasurer of the Company. The Company also announced that Chris E. Williford, Executive Vice President, Chief Financial Officer and Treasurer, has resigned from the Company to accept a job in an executive position with a private company.

Ms. Stuckey has been with the Company since 1997 and most recently served as Vice President – Corporate Finance. Ms. Stuckey received a Bachelor of Arts degree from the University of Texas at San Antonio and a Master of Business Administration degree from the Bordeaux Business School. Mr. Krog has been with the Company since 1995 and most recently served as Information Systems / Financial Reporting Director. Mr. Krog received a Bachelor of Business Administration degree from the University of Texas at Austin and is a Certified Public Accountant.

“I am pleased to announce two promotions from within the Company. Both Barbara and Bill have been instrumental in the growth and success of the Company over the past decade. On behalf of the entire Abraxas family, we thank Chris for 18 years of service and wish him well in his future endeavors,” commented Bob Watson, President and CEO of Abraxas.

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Mid-Continent, Permian Basin and Gulf Coast regions of the United States and in the province of Alberta, Canada.

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BP Announces North Sea Development

- BP Announces North Sea Development



Sep 6, 2011

BP (NYSE:BP) announced an agreement to invest up to $1.1 billion to progress a project to develop the Kinnoul reservoir in the central North Sea.

Kinnoul contains 45 million barrels of oil equivalent which will be connected to BP's Andrew platform and enable production to be extended to 2020 and beyond. Production from Kinnoul is forecast to peak at 45,000 barrels per day.

BP (NYSE:BP) has a potential upside of 54.2% based on a current price of $35.9 and an average consensus analyst price target of $55.37.

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Integrys Energy Group Announces Two Acquisitions

- Integrys Energy Group Announces Two Acquisitions



Sep 1, 2011

Integrys Energy Group (NYSE:TEG) announced the acquisition of two operating businesses involved in the compressed natural gas fueling business, Pinnacle CNG Systems and Trillium USA, previously owned by Wagner & Brown, Ltd.

Charlie Schrock, Integrys Chairman, President and Chief Executive Officer said, "Expansion into this business is consistent with our mission of providing customers with the best value in energy and related services. Our decision to enter this market is in response to customer needs, and this is complementary to our existing skill sets in regulated and nonregulated natural gas and electric services."

Integrys Energy has a potential upside of 2.4% based on a current price of $49.79 and an average consensus analyst price target of $51.

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Cameco Announces Intention to Acquire Hathor Exploration

- Cameco Announces Intention to Acquire Hathor Exploration



Aug 26, 2011

Cameco (NYSE:CCJ) announced that it intends to make an offer to acquire all of the outstanding shares of Hathor Exploration for cash consideration of $3.75 per share in a transaction which values the fully diluted share capital of Hathor at approximately $520 million.

Cameco delivered a written proposal to Hathor following a close of market on Friday, August 19 outlining its interest in acquiring the company for cash in a transaction vaulued ay 3.75 per share.

Cameco made today's announcement after discussions with Hathor regarding a potential board-supported transaction failed to result in an agreement.

Cameco (NYSE:CCJ) has a potential upside of 65.4% based on a current price of $22.3 and an average consensus analyst price target of $36.88.

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EXCO Resources Announces Expiration of Shareholder Rights Plan

- EXCO Resources Announces Expiration of Shareholder Rights Plan



Aug 22, 2011

EXCO Resources (NYSE:XCO) announced that its Board of Directors has determine to accelerate the expiration date of its shareholder rights plans from the close of business on January 24, 2012 to the close of business on September 30, 2011.

In January, the company adopted a shareholder rights plan at the direction of the Special Committee of the Board of Directors to enhance the ability to conduct a thorough, deliberative process of exploring the Company's strategic alternatives.

In light of the recent conclusion of the strategic review process, the Board determined that parties who had also previously entered into a confidentiality agreement containing standstill provisions in connection with the strategic review process will be afforded the opportunity to enter into new agreements that would permit the purchase of additional shares of the company's common stock.

The new standstill agreements would expire on September 30, 2011.

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Shell Announces It Closed Leak In North Sea

- Shell Announces It Closed Leak In North Sea



Aug 19, 2011

Royal Dutch Shell (NYSE:RDS.A) announced that it has closed a valve from which oil was spilling into the North Sea.

The company said that this is a "key step" in stopping the leak at its Gannet Alpha platform, the worst North Sea oil spill in more than a decade. The company also said that it will observe the flowline to make sure the valve remains sealed.

Over 1,000 barrels of oil has spewed into the sea since a pipeline was found to be leaking August 12, according to Shell, though it claims that after closing the well.

Royal Dutch Shell (NYSE:RDS.A) has a potential upside of 33.8% based on a current price of $62.67 and an average consensus analyst price target of $83.83.

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Abraxas Petroleum Announces Production And 2011 Estimates

- Abraxas Petroleum Announces Production And 2011 Estimates



Aug 9, 2011

During the month of July, Abraxas (NASDAQ:AXAS) produced 4,160 barrels of oil equivalent per day up from an average of 3,845 barrels of oil equivalent per day for the Q2.

Abraxas expects production for 2011 to average 4,000 to 4,200 barrels of oil equivalent per day, including its equity interest share of Blue Eagle's production that would generate an exit rate for 2011 between 4,700 and 4,900 barrels of oil equivalent per day.

Abraxas Petroleum (NASDAQ:AXAS) has a potential upside of 97.6% based on a current price of $3.09 and an average consensus analyst price target of $6.11.

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President Obama Announces 54.5 MPG Fuel Efficiency Standard

- President Obama Announces 54.5 MPG Fuel Efficiency Standard



Jul 29, 2011

President Obama announced an agreement with thirteen major automakers to track the next phase in the Administration's national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025.

The President was joined by Ford (F), GM (GM), Chrysler, BMW, Honda (HMC), Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan (NSANY), Toyota (TM) and Volvo, which together account for over 90% of all vehicles sold in the United States, as well as the United Auto Workers, and the State of California.

Building on earlier agreements for Model Years 2012-2016 vehicles, which will raise fuel efficiency to 35.5 mpg, the next round of standards will require performance equivalent to 54.5 mpg or 163 grams/ mile of CO2 for cars and light-duty trucks by Model Year 2025.

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Anadarko Announces Lucius Unitization

- Anadarko Announces Lucius Unitization

Monday, July 18, 2011                                               
Anadarko Petroleum Corp.

Anadarko Petroleum Corp. on Monday announced the finalization of a unitization agreement with Exxon Mobil Corp. and co-owners to develop the Lucius field.

The unitization includes portions of Keathley Canyon blocks 874, 875, 918 and 919 in the deepwater Gulf of Mexico. Anadarko will operate the unit with a 35-percent working interest. Following the unitization agreement, the Lucius interest owners entered into an agreement with the Hadrian South co-venturers whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades.

"As a result of these agreements, we expect Lucius to be among the most economically efficient projects in our portfolio, while providing important infrastructure in an emerging area of the Gulf of Mexico," said Al Walker, Anadarko President and Chief Operating Officer. "We've already placed orders for the long-lead items, including the truss spar floating production facility, which will have a capacity of more than 80,000 barrels of oil per day (BOPD) and 450 million cubic feet of natural gas per day. We look forward to working with our new co-owners and anticipate sanctioning the project later this year, with first production expected in 2014."

Anadarko and the co-owners also recently completed an extended well test at the Lucius discovery that provided assurance regarding the flow rates and excellent reservoir characteristics of the field. With equipment-constrained rates in excess of 15,000 BOPD of high-quality oil (29 degrees API gravity), the test provided additional confidence in Anadarko's previous resource estimates and indicated that Lucius can be developed with a minimal number of wells.

Co-owners in the Lucius unit include Plains Exploration & Production Co. with a 23.3-percent working interest; Exxon Mobil Corp. with a 15-percent working interest; Apache Deepwater LLC, a subsidiary of Apache Corp. with an 11.7-percent working interest; Petrobras with a 9.6-percent working interest; and Eni Petroleum with a 5.4-percent working interest.

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Petrom Announces Potential Significant Gas Find in NW Romania

- Petrom Announces Potential Significant Gas Find in NW Romania

Thursday, July 07, 2011
Dow Jones Newswires
BUCHAREST

Romania's dominant oil company OMV Petrom said drilling success at its 4539 Totea exploration well in the southwestern region of Oltenia, in what could be the "most important onshore gas discovery in the last six years," news agency Mediafax reported.

The 4539 Totea well was drilled following a recent 3D seismic exploration program. Three successful production tests were carried out, with a maximum stabilized production rate of around 3,100 barrels of oil equivalent/day gas and associated condensate, Petrom said in a statement.

"I am happy to announce this success which might represent the most important onshore gas discovery in Romania during the last six years. The results obtained during tests confirm the reservoir's potential as well as our expectations from the Oltenia region where we directed major investments," said Johann Pleininger, member of the Petrom Executive Board, responsible for Exploration and Production.

Petrom said it will start an appraisal program to determine the size of the accumulation, which is located in an area with a high geological complexity. Experimental production on well 4539 Totea is estimated to start by year-end, once the well is linked to the nearby gas pipeline infrastructure.

Petrom is Romania's largest vertically integrated oil company. Austrian OMV owns 51% of the company's shares, while Romanian Economy Ministry and regional investment fund Fondul Proprietatea hold 20.64% and 20.11% in Petrom, respectively. The reminder 8.24% stake is traded on the Bucharest bourse.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Global Energy Group Announces Kaymas Acquisition

Global Energy Group Announces Kaymas Acquisition

Wednesday, May 11, 2011
Global Energy Group

The Global Energy Group has further strengthened its offshore marine capability with the acquisition of a majority shareholding in Kaymas Electrical Engineering Ltd.

Global chairman, Roy MacGregor, said the acquisition would particularly enhance the capability of Global's offshore accommodation specialists Rigfit. Kaymas specializes in the provision of electrical services to the oil and gas, marine and heavy engineering industries.

Mr MacGregor said: "We have worked with Kaymas on many inspection, repair and maintenance projects over the years and have built up a great relationship. We are delighted this excellent company has decided to join the group.

"The specialist services Kaymas provide will bring a new dimension to what we are able to offer clients."

Kaymas managing director, Mike Sunderland, said: "We are very pleased to be joining the Global Energy Group, having worked with them on many occasions in the past.

"Becoming part of a large, highly successful and ambitious company like Global significantly strengthens our own capability and we are very much looking forward to continuing to grow our business as part of the group."

Mr Sunderland will be based in Global's Aberdeen facilities, working alongside Rigfit's managing director Brian Knowles, and a new office is also planned for Invergordon Service Base.

Kaymas currently employ a staff of around 70, all of whom are being retained following the acquisition. A privately owned company, based in Scotland and operating around the world, the Global Energy Group specializes in construction and maintenance of assets across a broad range of energy industry sectors.

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AGR Announces Two-year Contract with Statoil

AGR Announces Two-year Contract with Statoil

Monday, May 09, 2011
AGR Drilling Services

International energy company Statoil has signed a two year, NOK66m contract for the Riserless Mud Recovery system (RMR) from AGR Drilling Services.

Statoil is one of AGR's top customers and technology partners. AGR, which has its head office in Straume, Norway, has performed 33 RMR well installations since 2004 for Statoil.

RMR has been an industry changer since it was introduced. It enables engineered mud to be used in the top-hole section of a well, with all mud and cuttings being returned to the rig with zero discharge. The top-hole section can be drilled more safely, quickly and with far less impact on the environment.

This latest contract with Statoil also includes the continuation of CTS (Cutting Transportation System) operations on two rigs, with provision for AGR to be optional CTS supplier on a number of others. Statoil has used CTS, which takes cuttings up to 2km away from the well area, on 209 wells since 1998.

Johan Moller Warmedal, Executive Vice President of AGR Drilling Services, said: "It gives particular pleasure to land this agreement with such an important customer. I am delighted that Statoil has once again seen fit to use our innovative technology. The reputation of RMR continues to grow ever stronger globally and this latest show of confidence from Statoil is a credit to our dedicated, highly experienced team."

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Total Announces Offshore Angola Discovery

Total Announces Offshore Angola Discovery

Friday, May 06, 2011
Total S.A.

Total announced Friday that its subsidiary, TEPA (Block 17/06) Limited, and Sociedade Nacional de Combustiveis de Angola (Sonangol E.P.), have discovered hydrocarbons in the north-eastern area of the deep offshore block 17/06.

Drilled in a water depth of 445 meters, the Canna-1 well discovered hydrocarbons in reservoir of Miocene age and produced more than 5,000 barrels per day of high quality oil (33 API) during a production test.

Sociedade Nacional de Combustveis de Angola (Sonangol) is the concessionaire of the Block 17/06. TEPA (Block 17/06) Limited is the operator of the Block 17/06 with a 30% stake. Total's partners in the block are Sonangol Pesquisa e Producao S.A. (30%), Sonangol Sinopec International (SSI) Seventeen Limited (27.5%), ACREP Bloco 17 S.A. (5%), Falcon Oil Holding Angola S.A. (5%) and PARTEX Oil and Gas (Holdings) Corporation (2.5%).

Total has been present in Angola since 1953. In Angola, Total operated 460,000 barrels oil equivalent per day (boe/d) in 2010, and its SEC equity production amounted approximately 163,000 boe/d. This production comes essentially from Blocks 17,0 and 14.

Deep offshore Block 17, operated by Total with a 40% interest, is Total's principal asset in Angola. It is composed of four major zones: Girassol-Rosa and Dalia, which are currently producing; Pazflor, a project under development for a production start in the second half of 2011; and CLOV (based on the Cravo, Lirio, Orquidea and Violeta discoveries), for which the development was recently launched.

Total is also the operator with a 30% stake in the ultra deep offshore Block 32, on which 12 discoveries were made, confirming the oil potential of the block. Pre-development studies for a first production zone in the central south eastern portion of the block are underway.

In addition, the Angola LNG project for the construction of a liquefaction plant near Soyo is designed to bring the country's natural gas reserves to market. This project, on which Total holds a 13.6% stake, will be supplied by the associated gas from the fields on Blocks 0, 14, 15, 17 and 18. The project is underway with production expected to begin in 2012.

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SeaBird Announces 2D Contract Awards

SeaBird Announces 2D Contract Awards

Friday, May 06, 2011
SeaBird Exploration Limited

SeaBird Exploration Limited on Friday issued an update regarding its business activities as set out below:

Aquila Explorer has commenced a short 4D survey in Australia for an oil major and will then commence a multi client survey for one month until mid to end June. SeaBird has also received a Letter of Award for a 4,400 line-km survey in Indonesia to follow in direct continuation. The vessel will be employed until early August 2011.

SeaBird Exploration PLC "SeaBird" is a global provider of marine solutions for seabed acquisition of 3D/4C/4D multimode seismic data with OBN operations, marine 2D and 3D seismic data, and associated products and services to the oil and gas industry. SeaBird specializes in high quality operations within the high end of the source vessel and 2D market, as well as in the shallow water 2D/3D market.

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Hawk Announces Sask. Farm-in Deal

Hawk Announces Sask. Farm-in Deal

Thursday, May 05, 2011
Hawk Exploration Ltd.

Hawk Exploration Ltd. (the "Corporation") along with its 50 percent operating partner have entered into a strategic farm-in agreement (the "Agreement") with a public oil and gas company (the "Farmor") in its core area of Seagram Lake in western Saskatchewan. The Agreement allows Hawk to earn an interest in up to twelve gross (6 - net) sections of land prospective for Duperow (Leduc equivalent) heavy oil immediately adjacent to Hawk's existing crown acreage in the area. With this Agreement, Hawk currently owns or has access to 24 (12 - net) sections of land at Seagram Lake.

Under the terms of the Agreement, Hawk plans to drill one (0.5 net) vertical test well on the farm-in lands prior to June 30, 2011 to evaluate the Duperow formation for potential horizontal development. Based on the results of the vertical test well and at the election of Hawk and its partner, a horizontal or dual-leg horizontal test well could be kicked off from the vertical test well. Hawk and its partner can earn two (1 -net) sections for drilling a vertical test well, four (2 - net) sections for a single leg horizontal test well and eleven (5.5 net) sections of land for a dual-leg horizontal test well in exchange for 7.5% non-convertible gross overriding royalty to the Farmor. All of the farm-in lands were acquired at crown land sales and are eligible for existing Saskatchewan crown royalty incentive programs.

The Corporation has also commenced drilling operations at its first dual-leg horizontal (0.5 - net) well at Seagram Lake adjacent to Hawk's existing producing Duperow well.

Hawk is an emerging exploration company engaged in the exploration, development and production of conventional crude oil and natural gas in western Canada and is based in Calgary, Alberta.

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BME UK Announces West Africa Contract Win

BME UK Announces West Africa Contract Win

BME UK

BME UK on Wednesday announced a contract worth GBP500,000 for the provision of its Specialised Machinery And Reduced flow Technology (SMART) in West Africa.

The company which designs and manufactures engineering equipment for the construction, marine and oil and gas industries will deploy seven of its personnel from Aberdeen, to carry out the work in the Bonga Field in Nigeria. This landmark deal follows the award of two further contracts with Hunting Energy Services International Ltd and BIS Salamis, both of which will be delivered by BME's operations in Aberdeen.

Scot Borland, director of BME UK comments, "The contract win in West Africa has been achieved in conjunction with local our partner, GCA. The work on the Bonga Field will utilise our revolutionary SMART system, to undertake deep tank and vessel cleaning. We have specially designed this technology to deliver outstanding results while reducing the waste, which deep tank and vessel cleaning produces; in some cases the level of waste is reduced by as much as 80%.

"Seven people from Aberdeen will travel to Nigeria to install and operate the SMART equipment. Training provision also forms part of the contract scope and six West African nationals will receive on-site training."

Aberdeen based Hunting Energy Services International Ltd will also be using BME UK's SMART system. Scot continues, "We have been awarded a contract by energy services provider Hunting Energy Services (Well Intervention) Ltd. This will be fulfilled from our offices in Aberdeen and is for the provision of a containerised ultra high pressure jetting unit and associated training."
Additionally the company has been contracted to undertake activity for leading international industrial services firm, BIS Salamis with the award of an order for the provision of six vertical air receiver frames.

Scot continues, "The technologies we supply are designed to provide results of the highest quality whilst having the added benefit of producing lower amounts of waste. This is therefore better for the environment and helps companies to comply with waste minimisation program requirements. Customers using our SMART system also benefit from lower costs because the amount of contaminated waste products which need to be treated or disposed of is reduced.

"We have recently invested GBP750,000 in the launch of our Specialist Cleaning Services; these initial contract wins validate our decision to make this level of investment and mean that we are well on the way to achieving our target of doubling our turnover to GBP3.4 million."

BME UK designs and manufactures a range of equipment for the construction, marine, oil and gas and decommissioning sectors. This includes decontamination modules for the treatment and disposal of NORM, high pressure fluid pumps for on and offshore use, munchers, handling systems, pipe cleaning systems phosphate systems, heat exchanger and bundle cleaning equipment, as well as traditional spoolers, powerpacks, workshops.

From its headquarters in Aberdeen, BME UK also offers a 24/7 maintenance back up services for clients who own or operate their own water/fluid pumps/pipe handling and cleaning systems. BME's skilled engineers have a wealth of knowledge on a range of pumps and work in global locations. Specialised Cleaning Services, a division of BME UK, provides full bundle cleaning services including surface preparation, internal and external pipe cleaning, drain cleaning, vessel cleaning and shutdown, waste removal and decommissioning services for global operators.

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Falcon Announces Beetaloo Deal with Hess

Falcon Announces Beetaloo Deal with Hess

Monday, May 02, 2011
Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd. ( "Falcon"), an international oil and gas exploration and production company, announced Monday that Falcon Oil & Gas Australia Ltd ("Falcon Australia"), Falcon's 73 percent owned subsidiary, has signed a Participation Agreement with Hess Australia (Beetaloo) Pty Ltd ("Hess"), an affiliate of Hess Corporation, for the acquisition of an interest in onshore Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area").

The terms of the agreement remain as outlined in the Letter of Intent between the two companies announced on February 22, 2011. In brief, and subject to certain regulatory approvals and standard conditions, Hess will earn a 62.5 percent working interest in approximately 25,200 square kilometers (6,227,500 acres) by making a payment to Falcon Australia, acquiring warrants in Falcon Oil & Gas Ltd., conducting an extensive seismic program, and drilling five wells to explore and appraise the Agreement Area. Hess has the right to withdraw from the project following the seismic evaluation and again following the drilling phase, in which event the entire interest would transfer back to Falcon Australia. In addition to its 37.5 percent working interest in the joint acreage, Falcon Australia will retain 100 percent ownership in the entirety of EP99 and 405 square kilometers (100,000 acres) in EP98.

The seismic survey is anticipated to commence once necessary government and land users' approvals are obtained. Falcon Australia will also carry out its work planned for the Shenandoah-1 well, commencing with re-opening and casing the existing wellbore planned for the third quarter 2011, followed by a comprehensive testing program.

Falcon Oil & Gas Ltd. is an international oil and gas exploration and production company, headquartered in Denver, Colorado, incorporated in British Columbia, Canada, and trading on the TSX Venture Exchange under the symbol "FO." The company specializes in the business of unconventional and conventional oil and gas exploration and production and holds interests in prospective properties in Australia, Hungary, and South Africa. The company is focused on discovering, acquiring, and maturing a globally diversified portfolio of drilling opportunities with a goal of maximizing shareholder value through strategic relationships.

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