AGM Presentation – 11 June 2014

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Falkland Oil and Gas Limited

Geographic

Focus

• Purely focussed on exploration offshore the Falkland Islands

• Only Falkland explorer operating in both the North & South Basins

• Largest licence holder of all Falkland explorers

Exciting

Portfolio

• South and East Falkland Basin offers high impact drilling opportunities

• North Falkland Basin offers lower risk ‘step-out’ exploration and appraisal

• Interest in the Sea Lion oil development project

Active

Drilling

Programme

• Rig contracted – drilling commences Q1 2015

• Fully funded to drill 5 wells

• Biggest player in 2015 drilling programme

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Only explorer operating in both the North & South Basins

• Net interest of over 40,000 sq. km

• Material interest (40%+) in all licences

• Experienced operators

• Noble Energy

• Premier Oil

• Over 12,000 sq.km 3D survey completed

• Rig contract signed with Ocean Rig to use the

Eirik Raude on a multi-well campaign

• 5 well programme commencing in late Q1 2015

2004 licences

FOGL: 40%

Noble (op.) 35%

Edison: 25%

2002 licences

FOGL: 52.50%

Noble (op.) 35.0%

Edison: 12.5%

FOGL: 40%

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FOGL’s South & East Basin Licences

2010 & 2012 drilling

• 5 wells drilled: 4 found gas or gas-condensate

• Proved a working hydrocarbon system in the basin

• Good quality source rocks

• Good quality Cretaceous reservoirs

Toroa

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Cretaceous Source Rocks: The key to finding oil

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Major 3D seismic acquisition programme completed

Major 3D acquisition programme

• Completed in February 2014

• 3 separate survey areas

• >12,000 sq. km in total

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New 3D seismic

• Over 12,000 sq.km 3D survey completed

• 3 separate areas of interest:

• Diomedea Fan Complex

• Cretaceous Fault Blocks

• Hersilia Fan Complex

• Excellent data quality & imaging

• Step change in our understanding and ability

to map prospective areas

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• The Diomedea area comprises a large system of

deep-water channels and fans.

• Mid Cretaceous source rocks are expected to be

inter-bedded with these sands and mature for oil.

• A 5,500 sq.km 3D survey was acquired to explore

this play

• Many prospects and leads have been mapped

Diomedea Fan Complex (FOGL 52.5%)

Diomedea 3D survey outline

Humpback

Finback

Prospects and Leads map

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• Potential drilling candidates include:

• Humpback

• Finback

• Seismic interpretation is on-going

• Final target selection expected by end Q3 2014

Diomedea Fan Complex

Humpback shown on amplitude map generated from the new 3D seismic

Shelf

Slope

Basin

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• The Darwin exploration well discovered a rich gas

condensate in good quality Cretaceous sands

• Numerous, similar features have been mapped in our

adjacent licences.

• A 3D seismic survey was acquired in 2013 to better

define some of these prospects.

• Seismic interpretation is on-going and final results

are expected in Q3 2014

• Seismic amplitude responses indicate the possibility

of different hydrocarbon phases, including oil

• Potential drilling candidates include:

• Nurnberg

• Scharnhorst North

Cretaceous Fault Blocks (FOGL 52.5%)

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• A large 5,750 sq. km 3D seismic survey acquired

• Prospect mapping has yet to commence

• Fast-track 3D seismic data available in mid June

• Source rocks may be oil generative in the vicinity of Hersilia

and West Hersilia

• The Loligo well proved the presence of large amounts of gas in

the Tertiary Channel play

• Reservoir quality at the well location was poor. 3D seismic may

indicate if better reservoir is present elsewhere within Loligo

• To achieve a collaborative approach with Noble Energy, the

previously excluded area covering Loligo and Nimrod has been

re-combined into a single licence area

Hersilia Fan Complex and Loligo (FOGL 40%)

Scotia

3D survey outline

Loligo

• Fast track data will be available in June 2014

• Final processed data in Q4 2014

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• Interests in 5 licences

• PL004b (40% WI) contains Sea Lion

southern extension

• Material exploration prospect stacks in

PL004, PL003 & PL005

• Zebedee

• Jayne East

• Isobel

• Elaine

• Helen

• Susan

• Ann/Orca South

FOGL’s North Falkland Basin Licences

Jayne East

Elaine

Isobel

Zebedee

well location

Susan

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• The Sea Lion field straddles PL032 & PL004b

• FOGL estimate that c.30% of the Sea Lion oil-in-place lies

within PL004b

• 85 mmbbls 2C resources net to FOGL (Senergy)

• Premier are proposing a two phased development

concept, targeting the northern area first

• Further appraisal required in PL004b to determine

resources distribution & potential: Zebedee will be the

key next well

• In a success case up to 40% of Sealion oil-in-place

could be within PL004b

• FOGL has a significant stake in Sea Lion and

unitisation discussions have now been initiated with

the other field owners

Sea Lion area

Zebedee Location

PL032

PL004b

Probable Gas Extent

Probable Oil Extent

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PL004b: Zebedee (FOGL 40%)

Source: Premier Oil Source: Premier Oil

Multiple stacked targets

Zebedee Location

• FOGL: 40%, Premier (Operator) 36%, Rockhopper: 24%

• Net resources c. 60-160 mmbbl (un-risked)

• Well to test 7 target horizons

• The well will seek to extend the proven F2 sequence

towards the south and will also test deeper targets within

the older F3 sequence.

• Risk assessment: low-moderate

Source: Premier Oil

Feb 2014 CMD Presentation Feb 2014 CMD Presentation

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• Net resources c. 30 ~ 90 mmbbl (un-risked)

• Well will target Isobel deep

• Success will de-risk Elaine North & South, Helen & Susan

• Risk assessment: moderate

• Key risk: up-dip seal & reservoir

PL004a Isobel & Elaine (FOGL 40%)

Elaine

Isobel

Jayne East

Susan

Source: Premier Oil

Isobel Deep amplitude and spectral decomposition displays

Feb 2014 CMD Presentation

Isobel Deep

Location

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• Net resources c.40 ~ 90 mmbbl (un-risked)

• Location provides potential to stack 5 fans

• Risk assessment: moderate

• Key risk: up-dip seal

PL04c: Jayne East (FOGL 40%)

Jayne East

Susan

Jayne East Location

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• Ocean Rig’s Eirik Raude contracted

• Rig to be mobilised to the Falklands in Q1 2015

• The final drilling order is expected to be:

- 2 PMO operated wells in the North Falkland Basin

- 2 Noble operated wells in the South Falkland Basin

- 2 PMO in the North Falkland Basin

• Option slots have been secured, to allow follow-up drilling on any

successful results:

- Up to 8 options available up to point of rig mobilisation

- Options available during drilling on the basis of 1 option for every firm well

completed & up to a maximum of 8 options

• Eirik Raude is a fifth generation harsh environment semi-submersible

& sister ship to the Leiv Eirikssen that successfully operated offshore

the Falklands in 2012

FOGL’s drilling programme

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• FOGL has by far the largest exposure to the 2015 drilling programme:

Share of 6 well firm programme, based on drilling days*

- FOGL: 42%

- Premier Oil: 19%

- Noble Energy: 19%

- Rockhopper: 13%

- Edison International: 7%

• Participating in 5 out of 6 firm wells

2015 drilling programme

* Calculation based on equity share of total firm drilling programme, currently estimated at 260 days

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• FOGL is fully funded through a 5 well drilling programme commencing in Q1 2015

• It is either partially or fully carried on 4 of the wells as a result of farm-out carry arrangements with

Noble Energy, Premier Oil and Rockhopper Exploration

• Estimated well costs: Northern Basin well c.$50 million gross

Southern Basin well c.$110 million gross

• At end December 2013 FOGL had pro-forma cash of $151 Million

• Impact of farm-outs

Equity interest Paying interest

Zebedee 40% 40%

Isobel Deep 40% 0%

Jayne East 40% 0%

Noble well 1 52.5% 27.5%

Noble well 2 52.5% 42.5%

Funding

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FOGL largest exposure (>40%) to the 2015 drilling programme

Falklands only company operating in both north & south basins

Fifteen drilling commencing in Q1 2015

Five wells firm wells, plus options

Fully funded or firm programme

Five hundred mmbbls net prospective resources targeted by 5 wells >

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Disclaimer

FALKLAND OIL AND GAS LIMITED

DISCLAIMER

This presentation is not and is not intended to be a prospectus and does not or is not intended to constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Falkland Oil and Gas Limited (the "Company") in any jurisdiction. It shall not form the basis of, or be relied on in connection with, or act as invitation or inducement to enter into, any contract or commitment whatsoever. No offer of securities is being or will be made in circumstances which would require a prospectus or similar document to be approved.

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