Rig update

2 December 2011

Falkland Oil and Gas Limited

("FOGL" or "the Company")

Rig Update

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 note the Borders & Southern Petroleum plc ("B&S") announcement that the Leiv Eiriksson rig has been released by Cairn Energy PLC from drilling operations in Greenland and is now en route to the Falkland Islands for the upcoming B&S and FOGL combined drilling programme.

We anticipate that the two B&S wells will take approximately three months to drill and therefore expect to commence our first well on the Loligo prospect in late April or early May 2012 and the second well to spud on completion of Loligo.

Farmout discussions

FOGL is continuing its discussions with a number of interested farmout partners. The process is proceeding according to schedule and a further announcement on this will be made before our drilling operations commence in 2012.

Tim Bushell, Chief Executive of FOGL, said:

"I am very pleased to note the departure of the Leiv Eiriksson from Greenland and we look forward to commencing the joint B&S and FOGL drilling programme." 

- Ends -

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