14/15b-5 Well Discovery

2nd April 2015

Falkland Oil and Gas Limited ("FOGL")

Oil and gas discovery at well 14/15b-5 (Zebedee), Falkland Islands

Falkland Oil and Gas Limited (AIM:FOGL), the oil and gas exploration company focused on its extensive licence areas to the North, South and East of the Falklands islands, is pleased to announce the successful results of the 14/15b-5 'Zebedee' exploration well.

The well, which is located on licence PL004b (FOGL 40% interest), discovered 27.5 metres of net oil-bearing reservoir and 17.5 metres of net gas-bearing reservoir. The well penetrated multiple targets in the Cretaceous F2 and F3 formations with a total net pay of 45 metres. The pay is primarily located within two F2 sands:

· The Hector sand, which contains 17.5 metres of net gas pay.

· The Zebedee sand, which contains 25.0 metres of net oil pay. No oil-water contact was observed in the Zebedee reservoir.

The reservoir in both the Hector and Zebedee intervals is of good quality and the results are better than FOGL's pre-drill expectations.

Oil was also encountered in a 5 metre sand (2.5 metres of net oil pay), lying below Hector which may be a southern extension of the Beverley sand encountered in the 14/15b-4 well. In addition, a 3 metre sand lying below the Zebedee sand, containing good oil shows, is thought to be the southerly extension of the Sea Lion Main sand.

Pressure measurements taken in the Zebedee interval plot on the same gradient as those observed in the oil leg of the Sea Lion field. It is likely therefore, that Zebedee reservoir is in pressure communication with, and has the same oil-water contact as Sea Lion.

Good oil shows were recorded in a number of the deeper F3 targets, but at this location the sands are not well developed.

FOGL is encouraged by the positive results of the well. The Zebedee reservoir is better developed than anticipated in FOGL's reservoir models and this will positively impact resource estimates. The Hector reservoir, which has not been drilled previously, has been proven to have very good properties. In addition to the gas discovered in Hector in the well, the flank of the Hector reservoir may have potential for additional oil resources.

FOGL will now evaluate these results and their positive impact on potential hydrocarbon resources. We will also initiate an independent third party assessment, the results of which will be published in due course.

The well will now be plugged and abandoned as a successful exploration well. The Eirik Raude rig will then drill the first exploration test on the Elaine/Isobel fan complex in the southern part of the North Falkland Basin with the Isobel Deep well. The results of this well are expected in late April 2015 and a further announcement will be made upon spudding on the well.

Tim Bushell, CEO, commented:

"This is an excellent result and one that adds significantly to the proven hydrocarbon resources of licence PL004b and the greater Sea Lion area. This well further confirms the extension of the Sea Lion discovery and associated reservoirs into PL004b, which have now been demonstrated to contain a significant proportion of the total field resources.

"FOGL looks forward to continuing to work with its partners to progress development of the substantial oil and gas resources within PL004b."

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