AGM 14 May 2008

2007: A year of significant progress

Exploration activity further de-risks the project 750km of Controlled Source Electromagnetic (CSEM) data acquired over 12 prospects 9,950 km of additional 2D infill seismic data acquired Over 33,000kms of new seismic in total Farmout to BHP Billiton announced

A landmark deal

South & East Falklands Basin: location

Magallanes Basin P+P 6 Billion Boe Malvinas Basin 16 wells 4 oil disc.
/ rch ) sA nes o High nge Du o Chic (Ri

The Falkland Islands

FOGL acreage

Maurice Ewing Bank

0 100km

Scale: Huge licence area 48,853km2

Prospects and leads map

Multiple Play types

Multiple independent play types = significant risk diversification
Cretaceous Onlap Play
e.g. Toroa & Lutra

Tertiary Channel Play

e.g. Loligo &, Nimrod

Foldbelt Play

e.g. Undine

Cretaceous Cretaceous Fan Play Fan Play

e.g. Hersilia & Quest

Springhill Play

e.g. Thulla & Endurance

Significant Potential
TRACS estimate top 10 prospects have potential to hold more than 10 billion boe of prospective resources. FOGL latest estimate is over *10 billion boe (mean, un-risked resource) A further 90 prospects and leads have been identified and mapped Combined potential of all prospects and leads is >*60 billion boe Individual prospects, within the top 10, have mean reserves of between 250 million and 3.5 billion barrels

Independent verification of resource estimates

* mean, un-risked resources (i.e. recoverable reserves)

Successful CSEM survey

7 CSEM lines acquired Over 750 kms of data 12 prospects surveyed 7 positive anomalies 3 negative 2 prospects too deep for technique

Positive CSEM anomalies

Positive CSEM anomalies within the Tertiary Channel Play
Caird Garrodia Nimrod

Garrodia
Water Depth: 1,400m Depth to Reservoir 2,700 m

Nimrod
Water Depth: 1,500m Depth to Reservoir 2,900 m

Loligo
Loligo is one of a number of prospects and leads within the Tertiary Channel Play. Strong seismic DHIs Positive CSEM anomaly Loligo has most likely reserves of 3.5 billion barrels (un-risked)

Nautilus

Loligo

Seismic amplitude map of Loligo and Nautilus

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Toroa prospect
Top sand amplitude, with depth (m) overlay

Toroa is a prospect within the Cretaceous Onlap Play. Toroa has most likely reserves of 1.4 billion barrels (un-risked)

Positive CSEM anomaly over the Toroa prospect

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Thulla prospect
Thulla

Thulla is a prospect within the Springhill Play. Thulla has most likely reserves of 630 million barrels (un-risked)
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Development of oil & gas

Conventional oil and gas development solutions will be used. These have already been proven in comparable environments elsewhere Weather conditions similar to West of Shetland or Norwegian Sea Water depths of 200 m - 1500m, significantly shallower than recent Gulf of Mexico and Brazil deepwater drilling (5000 - 6000m) Conventional wells: neither high pressure nor high temperature Production vessels: FPSOs built elsewhere and sailed to Falkland Islands Falkland Islands situated between two major markets: US and Asia

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BHP Billiton
BHPB Petroleum accounts for 1/5 of BHBP Group operating profits Current production 380,000 boped Proven reserves: 1.35 billion boe Probable reserves: 2.24 billion boe Planned 2008 exploration spend $700MM Current E&P focus: Gulf of Mexico and Western Australia New Ventures focus: Offshore Columbia, Malaysia and The Falklands

An E&P player with the power and the reach of a supermajor

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BHP Billiton Farm-In Agreement

Commitment to drill a minimum of two exploration wells within 3 years Underlines quality of exploration potential Acquired 51% interest and operatorship Paid $12.75 million and will pay 68% of the drilling programme costs Extensive deep water drilling experience

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Drilling Programme a number of options

1. 2. 3. 4. Minimum 2 well exploration programme committed to by BHP Billiton 2 additional exploration &/or appraisal well locations under consideration BHPB actively seeking a rig Rig options: Direct contract with rig owner Sub-let on an existing contract Timeshare/swap with another Oil Company

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2008: preparation for drilling

Complete seismic & CSEM analysis and prospect evaluation Select best prospects for drilling and order of wells Select drilling locations, including potential appraisal well locations Select and contract rig Logistics planning: order long-lead equipment Conduct site surveys Complete well planning and gain FIG well consents Submit Environmental Impact Assessment (EIA) to FIG

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Undervalued compared to our peers

50000

FOGL is currently significantly undervalued compared to the other Falkland explorers. This differential is not supported by the underlying technical case
250

Licenced acreage
45000

Market Cap. millions

200

40000

30000

Market Cap Millions

FOGL Borders & Southern Desire Rockhopper

Licence area sq.km.

35000

150

25000

20000

100

15000

10000

50

5000

Desire

Borders & Southern

FOGL

Rockhopper

Largest drillable prospects: 500 million bbls - 3.5 billion bbls Most upside: Resource potential & number of prospects & leads Independently verified resource potential Multiple independent play types (spreads risk) De-risked prospects:
Positive CSEM results & strong seismic DHIs

BHPB is a very credible farminee, with access to rigs

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Outlook
FOGL is poised to participate in the first drilling campaign in the basin Preparation work for drilling in progress Site surveys expected to be carried out in second half 2008 We anticipate that exploration drilling will commence in 2009

FOGL is now within touching distance of realising the potential of what is probably one of the most exciting high impact exploration projects currently being undertaken anywhere in the world

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Disclaimer
Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Past performance of the Company or its shares is not a guide to future performance. Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Falkland Oil and Gas Limited or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. This presentation has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation.

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