WESTMINSTER - Arete Industries, Inc. (ARET) announced that it
has received a letter of intent to purchase oil and gas
properties in Wyoming, Colorado, Kansas, and Montana from
Denver-based oil and gas and operating companies for
$21,000,000 in cash.

The wells being offered by the Denver based oil & gas company
total 243 wells, including 46 operating wells (PDP) and 197
PUDS (PUD). Arete says the current operating wells at today’s
oil and gas prices will generate cash flow of approximately
$7,000,000 a year or a monthly cash flow of $585,000.

Arete purchased the TOP Gathering System located in Campbell
County, Wyoming in September of 2006. This pipeline is
connected to oil and gas properties in Wyoming and is currently
transporting approximately 900,000 Mcf of gas per day for the
wells being purchased and is cash flowing from its operations.

The pipeline has capacity of three times as much gas as is
presently being delivered, based on current compression, and
developing the present leases would help fill that capacity.
The purchase of the pipeline is part one of Arete’s four part
program of merging, purchasing, developing, and acquiring
operations in the oil & gas industry. The financing of the
project is being coordinated by First Diversified Financial
Services, Inc. of Houston, Texas. The loan will be a two year
term loan for $27,000,000 that includes $21,000,000 for the
acquisition and the remaining $6,000,000 for the costs of the
loan and drilling in the next 18 months. We plan to complete
the acquisition by early fourth quarter.

“We plan to complete all filing for Arete during the third and
fourth quarter, and thereafter begin the process for the
listing on the OTC BB,” said Charles Gamber, CEO of Arete
Industries.  “This has been a long time coming and we have
worked very hard to make this happen. We had problems with the
pipeline early on but it is performing very well for now and we
expect this acquisition of assets to provide us the ability to
continue to execute our plan presented in mid 2006.” 

Falcon Oil & Gas to Acquire Assets in Piceance Basin

DENVER - Falcon Oil & Gas Ltd. (TSXV: FO)has announced that an
independent committee of its Board of Directors has approved
entering into binding agreements with PetroHunter Energy
Corporation under which Falcon will acquire a 25% working
interest in Five Wells within PetroHunter’s 20,000 acre
Buckskin Mesa project located in the Piceance Basin area. A
completion and testing program is being initiated, and if
testing is successful, Falcon will have an option to acquire a
50% working interest in the Buckskin Mesa Project.

Falcon has also entered into agreements to acquire a 50%
working interest in PetroHunter’s 7 million acre prospect in
Northern Territory, Australia (the “Beetaloo Basin”).

Marc A. Bruner, the Chairman, CEO and President of Falcon is a
significant shareholder of PetroHunter. As a result, the Board
of Directors of Falcon formed an Independent Committee,
consisting of the 6 independent directors of Falcon, to
evaluate and approve the transactions.

“The evolution of our business strategy is to build our
portfolio and pursue assets that will enable us to leverage our
unconventional resource expertise,” stated Falcon’s Chief
Operating Officer, Rod Wallis. “The Buckskin Mesa Project
provides Falcon with the potential for near-term gas production
in one of the most productive unconventional gas deposits in
the continental U.S.”