FOGL.L Regulatory News (FOGL)

6 Sep 2006 14:30

Falkland Oil and Gas Limited06 September 2006 Wednesday 6 September 2006 Falkland Oil and Gas Limited("FOGL" or "the Company") Annual General Meeting The following statement was made by FOGL's Chairman, Richard Liddell, at theCompany's Annual General Meeting, today: "The last twelve months have been a period of significant progress for FOGL. Thesecond 2D seismic survey was completed and we have now recorded 22,450 km ofseismic, a very significant amount covering an enormous area. The results of thelatest 2D seismic survey have continued to support our view that there ispotential for a new and very substantial petroleum province to the South andEast of the Falkland Islands. Through our surveys and technical evaluations, we have identified a number ofdifferent hydrocarbon plays (reservoir trap type) and have mapped over 100prospects (fully defined, ready-to-drill target) and leads (potentiallyprospective feature). We continue to believe that some of these assets have thepotential for multi-billion barrels of oil and gas reserves. This year we have also strengthened our management team. We now have in place aUK executive team lead by Tim Bushell, who joined us from Paladin Resources, andwe have also appointed Colin More as exploration manager, who has over 23 yearsof exploration experience in the industry. I am also very pleased to have takenover the Chairmanship of FOGL, following John Armstrong's decision to standdown. We have also launched a revised forward work programme, within which we are nolonger obliged to undertake 3D seismic, and, we have obtained an extension tothe work programme for the southern licenses to align with our northernlicenses. Instead of 3D seismic, we will concentrate our next exploration phaseon a combination of additional 2D seismic and Controlled Source Electro-Magnetic("CSEM") surveys. We have recently entered into agreements with Wavefield InSeisAS ("Wavefield") for the 2D seismic, and with Offshore Hydrocarbon Mapping Ltd("OHM") for the CSEM survey. The revised work programme is a significantachievement for FOGL, as we believe it will provide the most effective solutionfor exploration of our licenses and improving our chances of success. It isexpected that both surveys will commence before the end of the year. The new work programme is specifically targeted at the larger prospects and isdesigned to de-risk and high grade our prospect and lead inventory, leading tothe selection of drilling locations. Our objective is now to commenceexploratory drilling in 2008, and a number of potential rig options available tothe Company are currently being evaluated. Concurrently, discussions with potential third party participants have beenprogressed and are still ongoing. A number of companies have shown a great dealof interest in our assets, and the new work programme has also been positivelyreceived by potential farminees, and is therefore likely to appeal to a muchwider range of potential partners. In summary, exploration efforts to date continue to indicate high potential formulti-billion barrels of oil and gas reserves in the areas covered by ourlicences. We are confident that the new programme being implemented is the mosteffective solution for evaluating and progressing our assets, and for definingthe best prospects for FOGL to drill in 2008. Also in pursuit of this drillinggoal we have commenced pre-drilling activities. Our farm-out initiativecontinues and our new technical programme is expected to enhance this effort.The board is confident that further significant progress will be made in thecoming year through our progressive and focussed exploration of the Company'sassets." Enquiries: FOGL 020 7563 1260Richard Liddell, ChairmanTim Bushell, Chief Executive College Hill 020 7457 2020Nick Elwes / Paddy Blewer www.fogl.com This information is provided by RNS The company news service from the London Stock Exchange