Projects

Hungary
Falcon has discovered a large Basin Centered Gas Accumulation (BCGA) and a potential fractured oil and gas play in the Makó Trough area in south central Hungary. In 2007 the company was awarded a production license covering 245,775 net acres.

Independent Report
An independent report effective March 31, 2008 estimates potentially recoverable contingent resources at the following for Falcon’s interests in the Szolnok formation, the Lower Endrod, the Basal Conglomerate and the Synrift Sequence, measuring in trillions of cubic feet (“Tcf”) and millions of barrel oil (“mmbo”):

For a full copy of the independent evaluation please see Falcon’s continuous disclosure record at www.sedar.com. In April of 2008, Falcon entered into a Joint Venture with ExxonMobil and MOL on an area covering 75% of the production license for further commercial evaluation and development of the resource.

(1)  The resource estimate has been conducted using the definitions specified by the Canadian Oil and Gas Evaluation Handbook. The Makó 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 Makó 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.