FOGL.L Regulatory News (FOGL)

26 Nov 2009 11:21



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA, NEW ZEALAND OR THE REPUBLIC OF IRELAND (THE "RESTRICTED JURISDICTION") OR ANY OTHER JURISDICTION IF TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

26 November 2009

Falkland Oil and Gas Limited

("FOGL" or "the Company")

Completion of Placing

Further to the Company's earlier announcement in respect of its intention to raise £50 million before expenses, FOGL is pleased to announce the completion of the placing of 43,478,261 new ordinary shares of 0.002 pence in the capital of the Company ("Ordinary Shares") at a price of 115 pence per share (the "Placing Price") (the "Placing Shares") (the "Placing").

Tim Bushell, Chief Executive of FOGL, said:

"We are delighted to have raised the capital necessary to fully fund our planned exploration programme and look forward to completing the contractual rig arrangements to commence a minimum two well exploration programme in 2010.

"Any success would have a transformational impact on the prospects for FOGL."

RAB Group participation in the Placing

Pursuant to the Placing, 1,500,000 of the Placing Shares have been placed with RAB Special Situations (Master) Fund Limited ("RAB SSMF"). In addition, 1,500,000 of the Placing Shares have been placed with RAB Cross Europe Fund Limited ("RAB CEF") and 435,000 of the Placing Shares have been placed with RAB Energy Fund Limited ("RAB EF"). Following admission of the Placing Shares, RAB SSMF will hold 35,094,278 Ordinary Shares representing 24.0 per cent. of the enlarged issued share capital of the Company, RAB CEF will hold 1,500,000 Ordinary Shares representing 1.0 per cent. of the enlarged issued share capital of the Company and RAB EF will hold 435,000 Ordinary Shares representing 0.3 per cent. of the enlarged issued share capital of the Company.

The above transactions with RAB SSMF, RAB CEF and RAB EF are deemed to be a Related Party Transaction under Rule 13 of the AIM Rules for Companies. The Directors consider, having consulted with Oriel Securities, the Company's Nominated Adviser, that the terms of the transactions with RAB SSMF, RAB CEF and RAB EF are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

Oriel Securities Limited ("Oriel Securities"), which is authorised and regulated in the United Kingdom by the Financial Services Authority (the "FSA"), is acting as Nominated Adviser and broker to the Company for the purposes of the AIM Rules for Companies and the AIM Rules for Nominated Advisers in connection with the Placing and Admission and is not acting for, and will not be responsible to, any person other than the Company for providing the protections afforded to customers of Oriel Securities or for advising any other person on any transaction or arrangement referred to in this announcement.

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, such securities by any person in any circumstances, and in any jurisdiction, in which such offer or solicitation is unlawful. Accordingly, copies of this announcement are not being and must not be mailed or otherwise distributed or sent in or into or from any Restricted Jurisdiction or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration thereof in, such jurisdiction or to, or for the account or benefit of, any person from or residing in a Restricted Jurisdiction and any person receiving this announcement (including, without limitation, custodians, nominees and trustees) must not distribute or send it in or into or from any Restricted Jurisdiction.