Falkland Oil and Gas Limited (FOGL), the oil and gas exploration company focused on its extensive license areas to the South and East of the Falkland Islands, held its Annual General Meeting.

'2007 was a year of significant progress. We undertook additional exploration activity to further de-risk the project; this work confirmed the high potential of the assets. In aggregate, our ten top ranked prospects have the potential to contain hydrocarbon resources in excess of 10 billion barrels oil equivalent, Richard Liddell, Chairman, said in a statement.

'The farm-in deal secured in October 2007 with BHP Billiton includes a commitment to drill a minimum of two exploration wells. BHP Billiton has extensive deepwater drilling expertise and the deal added credibility to the exploration assets and was a crucial step in moving towards a drilling campaign next year.

'In conclusion, FOGL is poised to enter the exploration drilling phase with a material licence equity interest in what may well be a significant new petroleum region in the South Atlantic. We believe this is probably one of the most exciting high impact exploration projects currently being undertaken anywhere in the world.

'We hope to commence exploration drilling in 2009, the next year promises to be a very exciting one for FOGL. The rewards for success could be substantial, given the large resource volumes of the prospects being targeted.'