Operations Update - 3D Seismic Acquisition

6 June 2013

Falkland Oil and Gas Limited

("FOGL")

Operations Update - 3D Seismic Acquisition

FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands is pleased to provide the following operations update with respect to the ongoing 3D seismic programme.

3D seismic survey over the Cretaceous Fault Blocks completed

The PGS M/V Ramform Sterling has completed a 3D seismic survey over the Cretaceous Fault Blocks within FOGL's Southern Area Licences. A total of 1,018 square kilometres of full fold seismic data have been acquired. This survey was designed totarget a number of prospects and leads immediately to the west and north-west of the Darwin gas-condensate discovery. The survey was operated by Noble Energy on behalf of the Joint Venture, which also includes Edison International Spa. The survey was completed within budget.

The data will now be processed by PGS and a fast track product will be available for interpretation in approximately two months. It is anticipated that the final processed data will be available in the fourth quarter of 2013. The fast track data will be used to commence prospect mapping and the selection of well locations.

Third 3D survey

The Joint Venture expects to award a contract in the near future for a third 3D seismic survey that will be acquired in the northern licence area in the fourth quarter of 2013.

- Ends -

Enquiries:

Falkland Oil and Gas

Tel+44 (0) 207 563 1260

Tim Bushell, Chief Executive

RBC Capital Markets (Nominated Adviser and Joint Broker)

Matthew Coakes / Jeremy Low / Daniel Conti Tel: +44 (0)207 653 4000

Jefferies Hoare Govett (Joint Broker)

Alex Grant / Chris Zeal / Graham Hertrich Tel: +44 (0)207 029 8000

FTI Consulting

Ed Westropp / Natalia Erikssen Tel: +44 (0)207 831 3113

Notes to Editors

This is the second of three planned 3D seismic surveys and is located in the South Falkland basin approximately 200 kilometres south of Port Stanley. This survey is designed to cover a number of prospects and leads that lie adjacent to the Borders & Southern Darwin gas-condensate discovery, which has an estimated most likely recoverable resource of 200 million barrels. FOGL has identified on existing 2D seismic data, a number of potential prospects such as Inflexible, Scharnhorst and Nurnberg that could be analogous to Darwin. 3D seismic data is however, required to better image these traps.

The information from this survey, together with that from two other 3D seismic surveys will be used to identify drilling locations for the next drilling campaign, which is planned for the second half of 2014.