Well 14/20-1 'Isobel Deep' operations update

12 May 2015

Falkland Oil and Gas Limited

("FOGL" or the "Company")

Well 14/20-1 'Isobel Deep' operations update

Falkland Oil and Gas Limited ("FOGL"), the exploration company focused on its extensive licence areas to the North, South and East of the Falkland Islands, is providing an operational update on the 14/20-1 "Isobel Deep" well that was spudded, by Premier Oil as operator, on 8th April 2015.

The technical issues relating to the blow-out preventer ("BOP") control system have now been fully resolved and drilling operations on Isobel Deep have recommenced. Whilst these repairs were being undertaken the rig was utilised to drill top-hole sections and set conductors on the Chatham and Jayne East Locations. On Jayne East, (FOGL 40% interest) the 36" conductor was set at a depth of 541metres and the well temporarily suspended. Drilling on Jayne East will recommence when the rig returns after the Humpback well in the South Falklands Basin.

The Isobel Deep well is expected to take approximately 15 days to complete. A further release will be issued once logging is completed.

The Company is fully carried through the costs of the Isobel Deep and Jayne East wells by Premier Oil and Rockhopper Exploration and therefore, is not impacted by these operational issues.

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