Operations Update

7 Jun 2007 09:41

Falkland Oil and Gas Limited07 June 2007 Falkland Oil and Gas Limited ("FOGL")Operations Update Falkland Oil and Gas Limited ("FOGL") is pleased to provide the following updateon its Falkland Islands exploration programme: • 2D seismic survey now completed, with 9,950 km of seismic data acquired. • Initial indications are that the data is of very good quality. • Second phase of CSEM survey commenced on 4 June • Results from first phase CSEM survey are encouraging. • Results of 2D seismic and the CSEM survey will be used to produce short list of best prospects for drilling. FOGL is pleased to announce the completion of its 2006-2007 2D seismic infillsurvey. The survey, which commenced on 19 December 2006, was completed on 31 May2007. A total of 9,950 kilometres of new seismic data have been acquired byWavefield InSeis AS. Processing of these data is now underway and earlyindications are that they will provide much higher definition of FOGL'shigh-graded prospects. Processing of the complete survey is likely to takeseveral months. The second phase of the Controlled Source Electro-Magnetic ("CSEM") survey beingacquired by Offshore Hydrocarbon Mapping plc commenced on 4 June 2007. Theacquisition phase is expected to take 6 to 8 weeks to complete. Results from thefirst phase of the survey, which comprised 4 lines over 6 prospects areencouraging. Processing of the CSEM data is a complex and lengthy process and isstill ongoing. FOGL have however, already identified several 'positiveanomalies'. The forward plan is to integrate the results of both the new 2D seismic data andthe CSEM with our existing work in order to produce a short list of the bestprospects for drilling. FOGL expects to be able to make further announcementsregarding this later in 2007. Discussions with rig owners and potentialfarminees are continuing and we remain confident that the current explorationprogramme will lead to an exciting drilling programme in 2008. Tim Bushell, Chief Executive of FOGL commented: "We are very pleased to have completed the 2D seismic survey and earlyindications are that these data will provide much greater definition over ourbest prospects. Initial results from the CSEM survey are encouraging and theyfurther reinforce our view that the South and East Falkland basins areprospective for the discovery of significant volumes of oil and gas." Enquiries: FOGL 020 7563 1260Tim Bushell, Chief Executive KBC Peel Hunt (Nominated Adviser) 020 7418 8900Jonathan Marren / Matt Goode 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