Mr. Philip O'Quigley reports

BEETALOO OPERATIONS UPDATE

Falcon Oil & Gas Ltd. has noted the release of Tamboran Resources Corp.'s fiscal 2025 first quarter results and has provided an update on operations in exploration permit 98 in the Beetaloo sub-basin, Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd.

On Aug. 30, 2024, Falcon announced the 2024 drilling program with the spudding of the Shenandoah South 2H (SS2H) horizontal well in EP98 with the Helmerich & Payne FlexRig super-spec rig. The SS2H well is located approximately 2.7 miles (4.3 kilometres) north of the previously flow tested Shenandoah South 1H (SS1H) well in EP117.

The SS2H well was successfully drilled to a total depth of 20,669 feet (6,300 metres) in 35 days, intersecting the Amungee B shale as prognosed. This included a 9,843-foot (3,000-metre) horizontal section that was successfully geo-steered within the shale without the need for a pilot hole. Data from the SS2H well have demonstrated geological rock properties consistent with the SS1H location, with strong gas shows across the entire horizontal section and no observed faulting. When preparing to run production casing a down-hole mechanical issue was unable to be remediated, which resulted in the SS2H well being plugged and sidetracked.

The SS2H ST1 sidetrack well is currently at a depth of 16,201 feet (4,938 metres), and it is hoped that the drilling of the well will be completed in the coming days.

Following the drilling of the SS2H ST1 sidetrack well, the Helmerich & Payne rig will skid across the same pad in preparation for the drilling of the Shenandoah South 3H (SS3H) well, which is planned to be completed with a 10,000-foot (approximately 3,000-metre) horizontal section.

Liberty Energy's frac fleet was successfully mobilized to the Beetaloo basin ahead of the 120-stage stimulation campaign (60 stages each) for the SS2H ST1 and SS3H wells. The program will be the largest stimulation campaign in the Beetaloo basin to date and is projected to deliver an increase to the number of completions per day compared with historic completions in the basin. This is expected to deliver increased completions efficiency, which drives completion cost reduction.

Falcon Australia will participate in both wells in the Shenandoah South pilot project at its elected participating interest of 5 per cent.

Philip O'Quigley, chief executive officer of Falcon, commented, "We look forward to updating the market over the coming weeks as we continue with these drilling operations in the Beetaloo."

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia. Falcon Oil & Gas is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland.

Falcon Oil & Gas Australia is a 98-per-cent subsidiary of Falcon Oil & Gas Ltd.

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