FOGL, the oil and gas exploration company focused on its extensive license areas to the South and East of the Falkland Islands, declared the execution of an option to enter into a farmout agreement which, if exercised, would provide FOGL with greater financial flexibility in respect of its current and forward programs.
On January 13, 2012, the Board of FOGL announced that it was continuing to progress discussions in relation to a potential farmout. The Board is pleased to announce that it has granted an industry counter-party an option (the Option) to enter into a Farm Out Agreement (FOA) and an associated Joint Operating Agreement (JOA). The counter-party has completed all technical and commercial due diligence and the FOA and JOA have been fully agreed. For corporate reasons unconnected with the proposed farmout, the counter-party is unable to execute the FOA/JOA at this time, but expects to be able to do so within the next two months and prior to the commencement of FOGL's drilling program.