Offshore staff

LONDON -- Falkland Oil & Gas Ltd. contracted Offshore Hydrocarbon Mapping Plc. to conduct a controlled source electromagnetic survey in South and East Falkland basins.

Following the CSEM survey, 2D seismic data will be used to identify exploration well locations. Both are expected to be completed by year-end.

CSEM surveys use a dipole source towed just above the seafloor to transmit an electromagnetic field into the earth. This field is modified by the presence of subsurface resistive layers, and these changes are detected and logged by receivers on the seabed.

Because hydrocarbon-bearing formations are highly resistive compared with surrounding formations, a CSEM survey may indicate the presence of oil and gas in offshore situations.

7/25/06