MercoPress. South Atlantic News Agency

Falkland Oil and Gas Ltd: Extension of 2D Seismic Programme

FOGL announces that it has taken up the option, as reported at its AGM on 20 July, to extend the 8,000 km 2D survey, which commenced in June this year, by a further 7,000 km. The GSI Admiral has been commissioned by the company to undertake this programme.

As stated in July, it is FOGL's objective to define 20 drillable prospects from the numerous leads that had been identified from the 9,450 km 2D seismic survey. The aim of the current 15,000 km programme is to work up the 50 key leads that have been previously identified and identify drillable prospects. To achieve this outcome most of the new lines will be closely spaced (approximately 2km apart) to enable detailed mapping of prospects. The 15,000 km survey is split approximately 6,000km over the 2002 Licence area and 9,000 over the 2004 Licence area.

To date 4,560 km of this survey has been recorded and the whole survey is expected to be completed late this year or early 2006. The company anticipates that the results of the survey will be processed in the first half of 2006. Once the 15,000 km extension survey has been completed FOGL intends to carry out a 3D seismic programme in the areas of highest prospectivity.

John Armstrong, Executive Chairman of FOGL, said:

"We have undertaken a vast amount of seismic surveying since our IPO and results continue to be encouraging. This 2D seismic contract extension will further enable us to define the full potential of our assets and together with the planned 3D survey will enable us to identify our 20 drillable prospects."

More information: www.fogl.co.uk