Falcon Oil & Gas Ltd. has entered into agreements with Merrill Lynch Pierce Fenner and Smith, Inc. (Merrill) and BMO Capital Markets (BMO) pursuant to which Merrill and BMO have been engaged to provide advisory services with respect to strategic initiatives in order to assist Falcon in maximizing the potential of the 391,400 acres which are outside of the Falcon/ExxonMobil/MOL joint development project in Hungary (the “100% Falcon Acreage”).

Falcon’s Chairman and CEO, Marc A. Bruner, stated, “With the assistance and capabilities of our world-class advisors, we’re optimistic about concluding one or more transactions that will add significant value to our assets and will provide the capability to further define and determine the commercial potential of these properties.”

The Merrill Lynch and BMO Agreements

The execution of the Agreements is the first step in Falcon’s strategic partner initiative (the “2009 Initiative”). Under the 2009 Initiative, Falcon will be seeking one or more third parties with the financial and/or technical capabilities to participate in exploration and development activities on the 100% Falcon Acreage.

Sean Mueller, project lead for Merrill, said, “Merrill Lynch has one of the largest energy teams on Wall Street, with offices in nine countries, and with a substantial track record in unconventional gas transactions. Production from unconventional gas has completely changed the natural gas market in North America. Marc A. Bruner has been an industry pioneer in unlocking the potential at Jonah and Pinedale in the Rocky Mountains. He and his team have now taken that experience and expertise and expanded internationally to Hungary. Unconventional gas will become extremely important to Europe’s overall gas supply. Falcon’s Mako interests represent a unique opportunity in one of the most advanced unconventional plays in Europe.”

Tags: Falcon Oil & Gas