Isobel Deep Re-drill Well Spud

23 November 2015

Falkland Oil and Gas Limited ("FOGL")

Isobel Deep Re-drill Well Spud

Falkland Oil and Gas Limited (AIM:FOGL), the oil and gas exploration company focused on its extensive license areas to the North, South and East of the Falklands islands, is pleased to announce that the 14/20-2 'Isobel 2' well (the "Well") was spudded, by Premier Oil as operator, on 21 November 2015.

The well is located on licence PL004a , in which FOGL has a 40% working interest, and lies approximately 4 km away from the 14/20-1 Isobel Deep oil discovery. The well will target the Isobel Deep reservoir and is a re-drill of the 14/20-1 well drilled earlier this year, which failed to reach Total Depth owing to operational issues.

The well will test the F3 fan systems, which are mapped as entering the basin from the south east margin and comprise a sequence of stacked reservoirs. In addition to Isobel Deep, the well will also penetrate four other fans within the complex, comprising: Elaine South, Isobel, Doreen and Irene. The Elaine/Isobel fan complex, based on the operator's estimates, has multiple reservoir targets and gross, mean un-risked resources of 400 million barrels of oil. 

A further release will be issued once the well has been completed and this is expected to be in January 2016. FOGL is fully carried through the costs of this well by Premier Oil and Rockhopper Exploration.

Tim Bushell, Chief Executive of FOGL, said:

"I am very pleased to announce the spud of Isobel 2, the final well in our 2015 exploration drilling programme. Finding oil in the original Isobel Deep well was very encouraging and the Isobel 2 well location will further evaluate this discovery. This well location also allows us to explore four other fans and hence, provides an opportunity to assess the significant oil resource that may exist within the Isobel/Elaine complex."

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For further information:

Falkland Oil and Gas LimitedTim Bushell, Chief Executive+44 (0) 20 7563 1260

RBC Capital Markets (Nominated Advisor and Joint Broker)Matthew Coakes / Daniel Conti+44 (0) 20 7653 4000

Numis Securities Limited (Joint Broker)John Prior / Ben Stoop / Paul Gillam+44 (0) 20 7260 1000

FTI ConsultingEd Westropp / George Parker+44 (0) 20 3727 1000