S.Atlantic : FOGL Grant of Option
Submitted by SARTMA.com (Nathan Prince) 26.01.2006 (Article Archived on 09.02.2006)

FOGL ordinary shares are at .002p.

Falkland Oil and Gas Limited Grant of option

Falkland Oil and Gas Limited (the “Company”) announces that on 23 January 2006. Tim Bushell was granted an option over 457,627 ordinary shares of 0.002p each in the Company (“Ordinary Shares”) at an exercise price of 118 pence per Ordinary Share. The option may be exercised between 23 January 2009 and 22 January 2013 subject to the satisfaction of performance criteria relating to the compound annual increase in the Company’s share price over the period 23 January 2006 to 22 January 2009 (the “Performance Period”).

Increase in the price of an Ordinary Share during the Performance Period Percentage of Ordinary Shares (in number) in respect of which the option may be exercised

less than 10 per cent compound per annum Nil 10 per cent compound per annum 25 per cent. 50 per cent compound per annum 100 per cent.  Between 10 per cent and 50 per cent compound per Annum.  Straight line apportionment between 25 per cent and 100 per cent.  It is also the Company’s current intention to grant a further option to Tim Bushell shortly after the release of its interim results for the 6 months ending on 30 September 2006 over Ordinary Shares with a market value of £180,000 (and the exercise price per Ordinary Share of that option will be equal to the then market value of an Ordinary Share). A further announcement will be made in due course to the extent necessary.

Enquiries:

FOGL

David Hudd, Deputy Chairman 020 7563 1276

KBC Peel Hunt Ltd

Jonathan Marren 020 7418 8900

College Hill

Ben Brewerton 020 7457 2020