Falcon Oil & Gas Ltd. announce the following update on the first gas composition data obtained during the 17-hour unassisted flow period of the Kyalla 117 N2-1H ST2 well ("Kyalla 117") in the Beetaloo Sub-basin, Australia. The elevated C3+ gas component of 14.42 mol%, which meets pre-drill expectations, confirms the Lower Kyalla Shale as a liquids-rich gas play. Gas composition data also support the view that the Kyalla gas stream will have elevated LPG and condensate yields.