Update on Toroa F61/5-1 Exploration Well Spud

Monday 5 July 2010

Falkland Oil and Gas Limited

("FOGL" or "the Company")

 Further Update on Toroa F61/5-1 Exploration Well Spud

FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, announced on 1 June 2010 that the Toroa F61/5-1 exploration well had spudded on Monday 31 May. The well is being drilled to an estimated target depth of circa 2,700 metres. The Toroa prospect is located in Licence PL15, in which FOGL has a 49% interest.

As previously announced, the Company had been expecting to announce preliminary results of the well during this week; however, there have been some further delays due to some minor operational issues and weather related downtime.

FOGL now expects to announce the preliminary results of the Toroa F61/5-1 well during the week commencing Monday 12 July 2010.

Enquiries: