Operations Update - 3D Seismic Acquisition

16 April 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 operations.

3D seismic survey over the Diomedea Fan completed

The PGS M/V Ramform Sterling has completed a 3D seismic survey over the mid Cretaceous Diomedia fan complex within the southern area licences. A total of 5,235 square kilometres of full fold seismic data have been acquired. The survey was operated by Noble Energy on behalf of the Joint Venture, which includes Edison International Spa and FOGL.

More 3D data were acquired in this survey than originally anticipated. The Diomedea fan system covers a large area and given the favourable acquisition conditions, the Joint Venture deemed it sensible to acquire as much data as possible over prospective areas. The survey was, however, completed within the original budget.

The data will now be processed by PGS and a fast track product will be available for interpretation in approximately four 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 well planning. Initial test lines from the survey indicate excellent data quality and imaging of the Cretaceous target interval.

3D seismic survey over the Cretaceous Fault Blocks commenced in the South Falklands basin

A second 3D seismic survey, also using the Ramform Sterling, has just commenced. This survey will cover a minimum area of 1,000 square kilometres and will target a number of prospects and leads in FOGL's southern licence area, immediately to the west and north-west of Borders and Southern's Darwin gas-condensate discovery. A further announcement regarding this survey will be made once acquisition is completed.

Third 3D survey

The Joint Venture is also currently reviewing tender offers with respect to a third 3D seismic survey to be acquired in the northern licence area in the fourth quarter of 2013.

- Ends -

Enquiries:

Falkland Oil and Gas

 +44 (0) 207 563 1260

 Tim Bushell, Chief Executive

 Oriel (Nominated Advisor and Joint Broker)

 +44 (0) 207 710 7600

 David Arch / Gareth Price / Ashton Clanfield

 Jefferies Hoare Govett (Joint Broker)

 +44 (0) 207 029 8000

 Alex Grant / Chris Zeal / Graham Hertrich

 FTI Consulting

 +44 (0) 207 831 3113

 Ben Brewerton / Ed Westropp

Notes to Editors

The Diomedea 3D survey is located approximately 150 kilometres to the south-east of Port Stanley. The Diomedea fan complex is a large Mid Cretaceous aged deep water fan system, covering an area of approximately 7,000 square kilometres. A number of prospects and leads have already been identified on existing 2D seismic within this fan complex. The purpose of the new 3D seismic survey is to map these prospects in considerably more detail. The 3D will also be used to map sand fairways and define reservoir distribution. In addition, the 3D dataset will be used to identify fluid content and reservoir properties (e.g. porosity) using seismic amplitude analysis. This work will benefit significantly from having well data, particularly from the Scotia and Toroa wells, to calibrate the 3D dataset.

Based on results from the 2012 drilling campaign FOGL believes that Cretaceous aged source rocks are likely to underlie the Diomedia fan and to be mature for oil generation. Previous work using satellite mapping, in combination with seismic data has indicated potential oil seeps to the northwest of the Diomedea fan system.

The second 3D seismic survey, over the Cretaceous Fault Blocks, 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 anestimated most likely recoverable resource of 200 million barrels. FOGL has identified on existing 2D seismic data, a number of prospects and leads such an Inflexible, Scharnhorst and Nurnberg that could be analogous to Darwin. 3D seismic data is however required to better image these traps and define potential future drilling locations.

These 3D seismic surveys will be used to identify targets for the next drilling campaign, which is planned for the second half of 2014.