Falkland Oil & Gas Completes Placing

Further to the Company's earlier announcement in respect of its intention to raise £50 million before expenses, Falkland Oil and Gas Limited (FOGL) has completed the placing of 43,478,261 new ordinary shares of 0.002 pence in the capital of the Company at a price of 115 pence per share.

Tim Bushell, Chief Executive of FOGL, said, "We are delighted to have raised the capital necessary to fully fund our planned exploration program and look forward to completing the contractual rig arrangements to commence a minimum two well exploration program in 2010.

"Any success would have a transformational impact on the prospects for FOGL."