Falkland Oil and Gas Limited ("FOGL" or "the Company") Placing...

Falkland Oil and Gas Limited
("FOGL" or "the Company")

Placing of New Ordinary Shares


The board of FOGL is pleased to announce the placing by KBC Peel Hunt Ltd of
11,764,706 ordinary shares of 0.002p ("New Ordinary Shares") at a price of 85p
per share to raise #10,000,000 (approximately #9,700,000 after expenses).


The New Ordinary Shares have been placed with certain institutional and other
investors, including directors.


The board is also pleased to announce that it has entered into a further 2D
seismic contract with Geophysical Services Incorporated of Calgary to acquire a
minimum 8,000 km of 2D seismic with an option for the Company to extend the
survey subject to agreement between FOGL and Hardman. The programme is
scheduled to cover areas in both the 2002 and the 2004 licence areas and will
concentrate on areas of interest identified in the initial 9,450 km survey which
has just been completed. The new 2D seismic programme will use the GSI Admiral
boat and is expected to commence in June 2005. Hardman Resources Ltd is also a
party to the new 2D seismic contract.