8 June 2011

AGM presentation

BHP Billiton• BHP Billiton farmed in 2007 paid US$13 million & 68% of all exploration costs to earn a 51% interest

• The joint venture has since spent over US$110 million, resulting in a net saving to FOGL of

US$75 million due to the farm-in carry

• BHPB have made a strategic decision to exit the Falklands

• Agreed that BHPB will make a US$40 million contribution to the cost of the Loligo well

• BHPB retain a back-in right for up to 40% on the Loligo prospect only

• BHPB’s involvement has saved FOGL shareholders c.$128 million = £80 million

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Darwin

Stebbing

Toroa

Prospects & options

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Drilling programme• FOGL is currently planning a 2 well programme commencing in Q1 2012 • First well on Loligo, identity of 2nd well dependent on results

Loligo appraisal

Loligo4700* mmbbls

First well

Successful result

Disappointing result

Inflexible253* mmbbls

Nimrod1500* mmbbls

Options

Vinson733* mmbls

Dependent on Borders & Southern’s Darwin result

Scotia1062* mmbbls

Hero1071* mmbbls

10* Pmean prospective resources (mmbbls)

Costs• FOGL has sufficient funds (c.$160 million) to drill a deep well on Loligo and a second well

from: Loligo (appraisal), Nimrod, Vinson or Inflexible

• FOGL is not fully funded for a second well on Scotia or Hero

Mobilisation costs

• Rig & equipment mobilisation: c.$60 million gross (shared with Borders & Southern)

Well costs:

• Loligo (4000m TD, est. duration 50 days): c.$65 million

• Nimrod/Vinson/ Inflexible: (3000m TD, est. duration 40~45 days): c.$45~55 million

• Scotia/Hero: (5000m TD, est. duration 65 days): c.$80 million

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