Well Spud Announcement

6 March 2015

Falkland Oil and Gas Limited

("FOGL" or the "Company")

14/15-5 Well Spud

Falkland Oil and Gas Limited (AIM:FOGL), the oil and gas exploration company focused on its extensive license areas to the North, South and East of the Falklands islands, is pleased to announce that the 14/15-5 'Zebedee' exploration well (the "Well") was spudded, by Premier Oil as operator, on 6 March 2015.

The well is located on licence PL004b, in which FOGL has a 40% working interest and is to be drilled on the Zebedee prospect. The well will test a total of seven stacked fan bodies with varying geological chances of success, ranging between 10% and 50%. The well is targeting mid case unrisked gross prospective resources based on FOGL management estimates of 281mmboe (112mmboe net to FOGL).

The well is anticipated to take approximately 30 days to drill and a further release will be issued once logging is completed. The anticipated well cost net to FOGL is c.22mUSD.

Tim Bushell, CEO, commented:

"I am very pleased to announce the commencement of the 2015 drilling programme. The Zebedee prospect, if successful, will significantly increase the hydrocarbon resources of the Sea Lion field complex within our licence area."

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