FOGL.L Regulatory News (FOGL)

20 Jul 2005 10:10

Falkland Oil and Gas Limited20 July 2005 20 July 2005 Falkland Oil and Gas Limited("FOGL" or "the company") Annual General Meeting The following comments will be made by FOGL's Chairman, John Armstrong, at theCompany's Annual General Meeting, to be held at 11.30 am today: "FOGL has made considerable progress in the nine months since admission to AIM.We have more than doubled the size of our licence area and now have a vastacreage position of approximately 79,000 sq km which is equivalent to 312 NorthSea style blocks. We have completed a 9,450 km 2D seismic survey. Following therelinquishment of 18 blocks earlier this month, FOGL continues to retain a high90% average equity stake in its licence areas, arising from our holding of 77.5%of the 29,000 sq km licence area in joint venture with Hardman, and 100% of the50,000 sq km licence area. A relinquishment of 98 blocks is due from the latterarea in December 2007. The results of the 2D seismic survey are encouraging, far exceeding ourexpectations identifying more than 130 leads. A number of different play typesare indicated. In the light of the seismic results, and to enable us to fund expandedexploration plans, we raised a further £10 million in May through a shareplacing. FOGL currently has £19.3 million in cash which we believe, on thebasis of current estimates, will be sufficient to fund the Company's plannedexploration activities through 2006. With the expanded exploration plans and the Company's future strategy theexploration management and technical team has been strengthened. FOGL will bemoving into a new office to accommodate this expanded team. In June we commenced a further 8,000km 2D seismic survey to define the leads wehave identified. We also have an option to extend this survey to 15,000 km.Some 1,600 km of this survey have already been recorded. As already announced,last month, we reached agreement with the Falkland Islands Government on a twoyear extension to the southern area licence. We are also planning a 2,000 sq km3D seismic survey. We expect that this survey, together with the possible extra2D seismic would take place in the next twelve to eighteen months. At the same time as we progress the analysis and interpretation of seismic data,we are preparing for discussions with potential farminees. We have alreadyreceived a number of approaches and intend to commence a formal programme toattract new companies to join us in our Falkland Islands project in the secondhalf of 2005. Over the next 12 months we will continue to assess the data that we haveobtained to date whilst carrying out further mapping and analysis. Our objectiveis to define about 20 drillable prospects with a view to developing a multi-welldrilling programme targeted to begin in 2007. The progress that we have made since our IPO has been remarkable and the resultsthat we have gained to date have exceeded our expectations. Our focus is onprogressing the exploration programme. We believe that our licences are in theright geological setting and have the potential to deliver further value toshareholders. Enquiries: FOGL John Armstrong, Executive Chairman 020 7490 4111 David Hudd, Deputy Chairman 020 7490 4111 College Hill 020 7457 2020 Nick Elwes / Jim Joseph www.fogl.co.uk This information is provided by RNS The company news service from the London Stock Exchange