Completion of Transaction

28 Dec 2006 07:00

Falkland Oil and Gas Limited28 December 2006 Falkland Oil and Gas Limited"The Company" Completion of Convertible Loan Falkland Oil and Gas Limited, ("FOGL" or "the Company") is very pleased toannounce that on 22 December 2006, final terms and conditions were agreed withRAB Special Situations (Master) Fund Limited ("RAB SSMF") for RAB SSMF to invest£8 million by way of convertible loan notes ("Notes") in the Company. RAB SSMF has immediately subscribed for £2 million of Notes, and will subscribefor a further £2 million of Notes on each of 23 February, 30 April and 24September 2007. These funds will provide the Company with additional cash resources to fund itsongoing exploration programme in its licences located to the South and East ofthe Falklands. In particular it will be used to fund the costs of the ControlledSource Electro Magnetic Survey ("CSEM") to be conducted by OHM Limited and aseabed coring programme. FOGL is embarking on an exciting programme over the next few months. The 2Dseismic infill survey has already started and the CSEM programme is planned tocommence early in 2007. This programme is aimed at the larger prospects and itis believed that the data gained will enable the selection of the best targetsfor drilling and also, provide potential farminees with further confidence inFOGL's project Full details of the transaction can be found in the release dated 29 November2007, and on the Company's website: www.fogl.co.uk Enquiries: FOGL Tim Bushell 020 7563 1260 College Hill Nick Elwes / Paddy Blewer 020 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange