12 July 2010

Falkland Oil and Gas Limited

("FOGL" or "the Company")

Results of the Toroa exploration well

FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland
Islands, confirms that the Toroa F61/5-1 exploration well has been drilled to a total depth of 2476 metres and logging
operations have now been completed.

The well did not encounter any reservoired hydrocarbons and will now be plugged and abandoned.

Further detailed evaluation of all data and information gained from this well will now be carried out. An update will be
provided once this work has been completed.

Tim Bushell, Chief Executive of FOGL, commented:

"Whilst the results of the Toroa well are disappointing, it has to be remembered that this is the first well in a
previously undrilled frontier basin. We believe that these results have helped to reduce some of the key risks of the
plays
in the deepwater areas of our licences. In that respect the well is certainly encouraging for further exploration and we
look forward to continuing our exploration programme once a suitable deepwater rig has been secured."

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