Falcon Oil & Gas Completes Public Offering

On August 10, 2006, Falcon Oil & Gas Ltd. completed a public offering of 43 million common shares at a price of $3.50 per common share for gross proceeds of $150,150,000. In addition, on August 25, 2006, Falcon completed the public offering of 6,450,000 common shares at a price of $3.50 per common share in connection with the exercise of the over-allotment option for gross proceeds of $22,575,000. As a result of the offering and the exercise of the over-allotment option (together, the offering), Falcon received aggregate gross proceeds of $173,075,000.

The offering was completed by an international syndicate of agents co-led by MGI Securities Inc., Mirabaud Securities Limited and Knight Capital Markets LLC, and including Bridgewell Limited, Dundee Securities Corporation, Sanders Morris Harris Inc. and Orion Securities Inc. Falcon intends to use the proceeds of the offering for the exploration and development of its projects in Hungary and Romania, and for general corporate and working capital purposes.

Falcon was represented in Canada by Aird & Berlis LLP with a team led by Daniel Bloch and included Jeffrey Merk, Jennifer Wainwright and Ron McKenna, in the US by Patton Boggs LLP with a team led by Alan Talesnick and included David Brody and Lloyd Spencer, and in the UK by Salans LLP with a team that included Jonathan Denton and Mark Wilson. Falcon was also represented in Romania by Salans LLP and in Hungary by Szabo Kovari Tercsak and Partners Attorneys.

The agents were represented by Wildeboer Dellelce LLP with a team led by Derek Sigel and included James Brown, Al Wiens and Ashleigh Frankel, and were represented by Weil, Gotshal & Manges LLP in Hungary.


Jeffrey K. Merk Daniel N. Bloch James Brown Ashleigh Frankel Jennifer A. Wainwright Ronald J. McKenna Alfred Wiens Derek M. Sigel


Aird & Berlis LLP Patton Boggs LLP Salans Wildeboer Dellelce LLP Weil, Gotshal & Manges LLP