AGM Presentation – 10 June 2015

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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.

While the information contained in this presentation, which does not purport to be comprehensive, is believed to be accurate, neither the Company nor any other person has conducted any investigation into or verified such information. No representation or warranty, express or implied, is or will be given by the Company or its directors, officers, employees or advisers or any other person as to the accuracy, completeness or fairness of this presentation and, so far as permitted by law and except in the case of fraud, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency of any of the information contained in this presentation or for any errors, opinions, omissions or misstatements, negligent or otherwise relating to this presentation. Each recipient must conduct its own independent investigation and analysis of the Company and of the information contained in this presentation and bear all the costs of doing so.

This presentation may include certain "forward looking" statements which are based on expectations, projections and forecasts relating to the future performance of the Company. Such statements, projections and forecasts, which are intended as a guide only, represent the Company's own assessment and interpretation of information available to it at the date of this presentation and reflect significant assumptions and subjective judgements by the Company. A number of factors could cause actual results to differ materially from the potential results discussed in such forward looking statements, estimates and forecasts, including (but not limited to) changes in general economic and market conditions and all other risk factors (whether political, regulatory or otherwise) associated with offshore exploration, development and production. In all cases, recipients should conduct their own investigation and analysis of the information contained in this presentation. No representation or warranty is made or assurance given that the statements, projections and forecasts contained in this presentation will be borne out in practice or that the Company will perform as projected and the Company does not assume responsibility for verifying any of such statements, projections or forecasts. Neither the Company nor any persons shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this presentation.

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• Pure Play Falklands Explorer

– Largest Falkland Islands license holder (> 40,000km2)

– Material interest in all licenses (> 40%)

– Exploring in the North, South and East basins

• Active 2015 drilling programme

– Four key wells: Zebedee, Isobel Deep, Humpback & Jayne East

– Eirik Raude commenced drilling on 6 March 2015

– Two wells completed to date

– Two oil discoveries to date: Zebedee and Isobel Deep

• Strong Business Track Record & Experienced Management Team

– Successful acquisition of Desire Petroleum in 2013

– Farm-outs completed with BHP, Noble Energy, Edison, Premier Oil and Rockhopper Exploration

The Leading Falklands Explorer

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2015 Drilling Programme

Prospect

Name

FOGL WI

(%)

FOGL

Paying

interest (%)

Q1 Q2 Q3 Q4

North Falkland Basin

Zebedee 40.0% 40.0%

Isobel Deep 40.0% 0.0%

Jayne East 40.0% 0.0%

South and East Falkland Basin

Humpback 52.5% 27.5%

2015

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• Interests in six licences

• PL004b (FOGL 40% ) contains Sea

Lion southern extension

• Material exploration prospects in

PL004a,b,c and PL005:

– Zebedee

– Jayne East

– Isobel/Elaine fan complex

– Susan

– Helen

FOGL’s North Falkland Basin Licences

Jayne East

Elaine

Isobel

Zebedee

Susan

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• The Sea Lion field straddles PL032 & PL004b

• FOGL estimate that >40% of the Sea Lion Complex

resources lie within PL004b

• Premier are proposing a two phased development concept,

targeting the northern area first

• Unitisation discussions took place in 2014 between PL032

& PL004b licencees, FIG and it’s advisers (BGS & DECC).

Currently these are on hold during 2015 drilling programme

• *FOGL estimate that the 14/15-4a and 14/15b-5

(Zebedee) wells have demonstrated over 250mmbbls of

oil resources lying within PL004b

Sea Lion Complex

*Preliminary FOGL management estimate of gross mid case contingent resources

PL032

PL004b

Phase 1a

development area

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14/15b-5: Zebedee Oil Discovery

• Total hydrocarbon net pay of 45 metres

• Hector: 17.5 metres of net gas pay,

• Possible significant upside in Hector oil rim

• FOGL estimate c.18~32 mmbbls oil within Hector oil rim

• Zebedee : 25.0 metres of net oil pay, excellent reservoir

• FOGL estimate c.75 mmbbls oil within Zebedee sand

• Beverley: 2.5 metres of net oil pay

• FOGL estimate c.20 mmbbls oil within Beverley oil rim

• Pressure measurements in the Zebedee reservoir plot on the same

gradient as the Sea Lion field.

• Very likely that the Zebedee reservoir is in pressure communication

with, and has the same oil-water contact as Sea Lion.

• Good oil shows in a number of the deeper F3 targets, but at this

location the sands were not well developed.

Significant increase in Sea Lion Complex Resources within PL004b

Preliminary FOGL management estimate of gross mid case contingent resources

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Zebedee/Casper South

• One sand or two?

• In pressure communication

9

9

?

?

?

?

?

Hector Reservoir

Spectral Decomposition Amplitude extraction

Top Hector

GOC OWC?

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10

Beverley results demonstrate presence of oil rim

GOC OWC

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PL032 310 55%

PL004b 256 45%

Sea Lion Complex: Material Resources within PL004b

Preliminary FOGL management estimate of mid case contingent & prospective resources

85 117

Contingent

Resources split

32

*

* GCA estimate 2012

FOGL share

102

18%

PL004b Mid Case Gross Contingent

& Prospective Resources

38

45

60

75

20

18

256

0

50

100

150

200

250

300

SLMC Casper Casper South Zebedee Beverley Oil Hector Oil Jayne East Sea LionComplex

Resources inPL004b

mm

bb

ls

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Isobel/Elaine fan complex

Courtesy Rockhopper Exploration

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14/20-1: Isobel Deep Oil Discovery

De-risking another Sea Lion scale fan-complex

• Well drilled to 2527metres, did not reach planned TD

• Penetrated c. 24m into Isobel Deep (F3) sand

• Oil recovered to surface (with drilling fluid)

• Over-pressured reservoir

• Well suspended

• Opens up new play

• Significantly de-risks entire Isobel/Elaine fan complex

• Lowers risk on FOGL 100% prospects Susan & Helen in PL005

• Next steps: Re-enter/side-track or re-drill well

• Under the terms of the farm-out agreement FOGL is fully carried for

any re-drill or side-track of the Isobel Deep well

Isobel Deep upper sand

Isobel Deep lower sand

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14

Isobel Deep fan system

Spectral Decomposition

Amplitude extraction

Isobel Complex

Isobel

Complex

A

B

A

B

A

B

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Isobel

Deep

Isobel/Elaine fan complex

Isobel

Shallow

Elaine

South

Elaine

North

Isobel Deep

Well location

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• Well will test five potential reservoir levels across

the F2 and F3 sequences

• In success case can be tied back to Sea Lion

• Key geological risk is the updip seal

FOGL interest (paying interest zero)

40%

Gross Prospective

Resources 85mmbbl(1)

Net Prospective

Resources 34mmbbl

Spud Date Q3 2015

Operator Premier Oil (36%)

Partners Rockhopper (24%)

(1) Mid case unrisked gross prospective resources based on FOGL management estimates

PL004c: Jayne East

High Impact, near field well

Jayne East Location

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Diomedea Fan Complex

FISA 3D survey

Cretaceous Fault Blocks

FIST 3D survey

Hersilia Fan Complex

FINA 3D survey

FOGL’s South & East Basin Licences

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Prospect selection for Noble operated wells

First Well

• Humpback prospect (in the Diomedea Fan Complex)

Second well

• Well postponed pending Humpback results and completion of technical evaluation

• Humpback results will guide choice of follow-up drilling.

• Current options being evaluated:

• Diomedea Fan Complex

• Side-track on Humpback (success case)

• Fault Block Area

• Scharnhorst North

• Hersilia Fan Complex

• Starfish

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• The Darwin exploration well discovered gas and a rich condensate in

good quality Cretaceous sands

• Seismic amplitude responses indicate the possibility of different

hydrocarbon phases, including oil

• Potential drilling candidate:

• Scharnhorst North: 355 mmbbls*

• Seismic interpretation is on-going

Cretaceous Fault Blocks (FOGL 52.5%)

Fault Block play shown on an amplitude map generated from the new 3D seismic data

* Mid case gross prospective resources

(un-risked) based on FOGL management estimates

Scharnhorst North

Seismic amplitude map over

Scharnhorst North

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• Multiple material prospects identified on 3D seismic

• Mid Cretaceous Fan Play:

• Starfish: 402 mmbbls*

• Bullfish:

• Shearwater:

• Fulmar:

• Toothfish:

• Hoki:

• Jurassic Fault Block Play

• Endurance:

• Endeavour:

• Cooper:

• Seismic interpretation is on-going

Hersilia Fan Complex (FOGL 40%)

* Mid case gross prospective resources (un-risked) based on FOGL management estimates

> 2 billion boe*

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• Diomedea area comprises a large system of

deepwater channels & fans

• Multiple material prospects identified on 3D seismic

• Main hydrocarbons in place expected to be oil

• Six potential drilling targets identified (> 1.7bn bbl

gross prospective resources (1))

• Significant ‘follow-on’ potential in the event of

success at Humpback

• Current prospect inventory :

• Humpback: 510 mmbbls*

• Stingray: 266 mmbbls*

• Finback: 232 mmbbls*

• Caperea: 225 mmbbls*

• Minke: 240 mmbbls*

• Bowhead: 275mmbbls*

Diomedea Fan Complex (FOGL 52.5%)

Prospects and Leads map

* Mid case gross prospective resources (un-risked) based on FOGL management estimates

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Diomedea Fan Complex: Humpback

WI (%) / PI (%) 52.5% / 27.5%

Gross Prospective

Resources 510mmbbl(1)

Net Prospective

Resources 268mmbbl

Spud Date June 2015

Operator Noble Energy (35%)

Partners Edison (12.5%)

(1) Mid case unrisked gross prospective resources based on FOGL management estimates

Potential high impact play opener, with multiple follow-on prospectivity

• Humpback comprises a system of stacked slope-

channel reservoirs

• Located up-slope from mature oil source kitchen

• Up-dip seal mapped on 3D

• Potential world-class prospect with stacked reservoir

objectives

The first well targets the Humpback channel and

Stingray is a possible follow-up

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• The 2015 drilling campaign commenced on 6 March 2015

• Four well drilling programme targeting over 1.1 billion barrels

of gross prospective resources

• Two oil discoveries in NFB so far…..

• Zebedee: Significant increase to Sea Lion Complex resources

within PL004b (FOGL 40%)

• Isobel Deep: Exciting play opening well in Isobel/Elaine fan

complex

• Humpback in SFB next up

• Jayne East to follow in Q3

Summary