MercoPress. South Atlantic News Agency

2D Seismic Survey Commences in the South Atlantic.

FOGL announces that its planned 2D seismic survey, using the vessel “GSI Admiral”, should commence this week in line with the schedule outlined at the time of the company's AIM listing in October this year.

Geophysical Services Incorporated ("GSI") had been contracted to undertake the first 2D seismic survey for over ten years on FOGL's initial licence area of 33,000 sq km, where it is in Joint Venture with Hardman Resources (FOGL 77.5%, Hardman 22.5%).

This survey will now be extended to cover the additional 50,000 sq km recently awarded to FOGL (see announcement dated 7 December 2004); it will be the first seismic carried out on the new area. This approach will allow the mobilisation and demobilisation costs to be spread over both licence areas.

The survey will now comprise 5,500 km in the FOGL?Hardman Joint Venture area and 5,000 km in the new FOGL 100% area.

During the survey, data from the GSI Admiral will be downloaded daily for FOGL to review; this will enable the programme to be modified as it proceeds to focus on areas of particular interest as they emerge.

Initial results of the seismic should be available by mid-2005 and follow-up work will commence next southern hemisphere summer.

John Armstrong, Executive Chairman of FOGL, said:

"The 10,500 km of seismic to be recorded from late December 2004 through to April 2005 will provide critical information on the 8 leads already identified in the FOGL?Hardman Joint Venture area. It will also provide reconnaissance information on other parts of the FOGL-Hardman JV area and the new 50,000 sq km area recently granted exclusively to FOGL. The survey is very extensive and will provide modern information as to the petroleum opportunities in the Company's Falkland Islands Licence areas."