MercoPress. South Atlantic News Agency

Falkland Oil and Gas Ltd.
Seismic Survey Update

FOGL announces that it has completed recording approximately 50% of the planned 10,500 km 2D seismic survey in its 83,000 sq km licence areas to the south and east of the Falkland Islands.

90% of the survey to date has been in the southern 33,000 sq km licence area where FOGL (77.5%) is in joint venture with Hardman (22.5%). The balance of the survey to date has been in the northern licence area where FOGL holds 100% and this is the area that will be the focus of operations in March and April.

A preliminary review of the early processed sections of the lines recorded thus far has provided further information on the 8 leads in the FOGL / Hardman area referred to in the AIM listing prospectus, and has also identified several additional leads which could warrant further work.

Full processing of these lines will take place over the coming months, while the balance of the survey by the vessel "GSI Admiral" will continue through March and April 2005. The fully processed and interpreted results of the entire survey are expected to begin to be available about mid year.

Dr Armstrong, Executive Chairman of FOGL, said:

"Although it is early days, the overall indications from the data we have received to date are encouraging. We are looking forward to completing the balance of the survey and in due course fully assessing the results of this work."

17 February 2005

Enquiries: FOGL

John Armstrong, Executive Chairman + 61 (0) 7 3211 1122

David Hudd, Deputy Chairman + 44 07771 893 267

College Hill,+ 44 020 7457 2020