Exploration Update

9 Sep 2005 09:30

Falkland Oil and Gas Limited09 September 2005 Friday 9th September 2005 Falkland Oil and Gas Limited("FOGL" or "the company") Extension of 2D Seismic Programme FOGL announces that it has taken up the option, as reported at its AGM on 20July, to extend the 8,000 km 2D survey, which commenced in June this year, by afurther 7,000 km. The GSI Admiral has been commissioned by the company toundertake this programme. As stated in July, it is FOGL's objective to define 20 drillable prospects fromthe numerous leads that had been identified from the 9,450 km 2D seismic survey.The aim of the current 15,000 km programme is to work up the 50 key leadsthat have been previously identified and identify drillable prospects. Toachieve this outcome most of the new lines will be closely spaced (approximately2km apart) to enable detailed mapping of prospects. The 15,000 km survey issplit approximately 6,000km over the 2002 Licence area and 9,000 over the 2004Licence area. To date 4,560 km of this survey has been recorded and the whole survey isexpected to be completed late this year or early 2006. The company anticipatesthat the results of the survey will be processed in the first half of 2006.Once the 15,000 km extension survey has been completed FOGL intends to carry outa 3D seismic programme in the areas of highest prospectivity. John Armstrong, Executive Chairman of FOGL, said: "We have undertaken a vast amount of seismic surveying since our IPO and resultscontinue to be encouraging. This 2D seismic contract extension will furtherenable us to define the full potential of our assets and together with theplanned 3D survey will enable us to identify our 20 drillable prospects." Enquiries: FOGL John Armstrong, Executive Chairman 020 7490 4111 David Hudd, Deputy Chairman 020 7490 4111 College Hill 020 7457 2020 Ben Brewerton / Nick Elwes www.fogl.co.uk This information is provided by RNS The company news service from the London Stock Exchange