FOGL & BHP Enter Farm-Out Agreement for Falkland Licenses

BHP Billiton has acquired an interest in 14 exploration and production licenses offshore the Falkland Islands in the South Atlantic. The Company signed contracts with Falkland Oil and Gas Limited (FOGL) for rights to explore and, if successful, eventually produce oil and gas from the East Falkland Basin located off the southern and eastern coast of the Falkland Islands.

BHP Billiton holds a 40 per cent interest in the acreage and is the designated operator. Falkland Oil and Gas Limited holds the remaining 60 percent interest. The production licenses cover approximately 18 million acres and are located in water depths ranging from approximately 656 to 6,570 feet (approximately 200 to 2,000 meters).

"We believe this substantial Falklands acreage will be a good addition to BHP Billiton Petroleum's global portfolio and we look forward to working with our partner to pursue this under explored area," said Steve O'Rourke, President, Exploration, BHP Billiton Petroleum. "With our strong focus on growth, we now hold a significant interest in this high potential basin and will utilize the talent of our team to safely execute an exploration program in the Falkland Islands."

BHP Billiton is the world's largest diversified resources company, with a portfolio of high-quality, long-life assets and a significant pipeline of growth projects. The Company employs approximately 39,000 people at more than 100 locations in more than 25 countries. BHP Billiton Petroleum is a substantial oil and gas exploration and production business. Its principal activities are oil and natural gas exploration, development, production and marketing.

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