AGM Presentation 10 June 2015

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FALKLAND OIL AND GAS LIMITED
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The Leading Falklands Explorer

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

2015 Drilling Programme

Prospect
Name

FOGL WI
(%)

2015

FOGL
Paying
interest (%)
Q1

Q2

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%

Q3

Q4

FOGLs North Falkland Basin Licences

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

Zebedee
Jayne East

Elaine

Isobel

Susan

Sea Lion Complex

Phase 1a
development area

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 its 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

PL032

PL004b

*Preliminary FOGL management estimate of gross mid case contingent resources

14/15b-5: Zebedee Oil Discovery

Total hydrocarbon net pay of 45 metres

Hector: 17.5 metres of net gas pay,

Zebedee : 25.0 metres of net oil pay, excellent reservoir

Possible significant upside in Hector oil rim

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

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

Zebedee/Casper South

One sand or two?

In pressure communication

Hector Reservoir
GOC OWC?

?
?

Amplitude extraction
Top Hector

Spectral Decomposition
9

Beverley results demonstrate presence of oil rim

GOC

OWC

10
10

Sea Lion Complex: Material Resources within PL004b

PL004b Mid Case Gross Contingent
& Prospective Resources

85

117

Contingent
Resources split

300

32
250

18

PL004b
256
45%

20
200

PL032
310 *
55%

mmbbls

75
150

256
60

FOGL share

100

45

50

102
18%

38
0
SLMC

Casper

Casper South

Zebedee

Beverley Oil

Hector Oil

Preliminary FOGL management estimate of mid case contingent & prospective resources

11

Jayne East

Sea Lion
Complex
Resources in
PL004b

* GCA estimate 2012

Isobel/Elaine fan complex

Courtesy Rockhopper Exploration

12

14/20-1: Isobel Deep Oil Discovery

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

De-risking another Sea Lion scale fan-complex

13

Isobel Deep fan system

B

A
Amplitude extraction
Isobel Complex
A

A
Isobel
Complex

Spectral Decomposition

14
14

Isobel/Elaine fan complex

Elaine
North

Isobel
Shallow
Isobel
Deep

Elaine
South
Isobel Deep
Well location

15

PL004c: Jayne East

FOGL interest

40%

(paying interest zero)

Gross Prospective
Resources

Jayne East Location

85mmbbl(1)

Net Prospective
Resources

34mmbbl

Spud Date

Q3 2015

Operator

Premier Oil (36%)

Partners

Rockhopper (24%)

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

High Impact, near field well

(1)

Mid case unrisked gross prospective resources based on FOGL management estimates

16

FOGLs South & East Basin Licences

Hersilia Fan Complex

FINA 3D survey

Cretaceous Fault Blocks

FIST 3D survey
Diomedea Fan Complex
FISA 3D survey

17

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

18

Cretaceous Fault Blocks (FOGL 52.5%)

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:

Seismic amplitude map over

Scharnhorst North

Scharnhorst North: 355 mmbbls*

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

Seismic interpretation is on-going

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

19

Hersilia Fan Complex (FOGL 40%)

Multiple material prospects identified on 3D seismic

Mid Cretaceous Fan Play:

Starfish:

Bullfish:

Shearwater:

Fulmar:

Toothfish:

Hoki:

Jurassic Fault Block Play

Endurance:

Endeavour:

Cooper:

402 mmbbls*

> 2 billion boe*

Seismic interpretation is on-going

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

20

Diomedea Fan Complex (FOGL 52.5%)

Diomedea area comprises a large system of

deepwater channels & fans

Prospects and Leads map

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:
Stingray:
Finback:
Caperea:
Minke:
Bowhead:

510 mmbbls*
266 mmbbls*
232 mmbbls*
225 mmbbls*
240 mmbbls*
275mmbbls*

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

21

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%)

Humpback comprises a system of stacked slopechannel reservoirs

Located up-slope from mature oil source kitchen

Up-dip seal mapped on 3D

Potential world-class prospect with stacked reservoir

objectives

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

(1)

Mid case unrisked gross prospective resources based on FOGL management estimates

22

Summary

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

23