Re: FOGL fund raising

Global Petroleum Ltd
31 May 2005


Global Petroleum Limited


                          Falkland Oil and Gas Limited

ASX-listed oil and gas explorer Global Petroleum Limited (GBP) advises that
Falkland Oil and Gas Limited ('FOGL') made the attached release on 31 May 2005.

Directors of Global Petroleum resolved to not participate in the placement so as
to conserve the company's cash position. Furthermore, Global shareholders retain
sufficient interest in FOGL through the 12.85 million shares already held by the
company.

As a result, Global's holding of 12.85 million shares will represent 14% of FOGL
after the issue of the new ordinary FOGL shares referred to in the attached
announcement.

Further information:

Global Petroleum Limited
Dr John Armstrong, Executive Chairman                            [phone]

Bell Pottinger Corporate & Financial
Nick Lambert                                                [phone]


                          
                          Falkland Oil and Gas Limited
                           ('FOGL' or 'the Company')

                         Placing of New Ordinary Shares

The board of FOGL is pleased to announce the placing by KBC Peel Hunt Ltd of
11,764,706 ordinary shares of 0.002p ('New Ordinary Shares') at a price of 85p
per share to raise £10,000,000 (approximately £9,700,000 after expenses).

The New Ordinary Shares have been placed with certain institutional and other
investors, including directors.

The board is also pleased to announce that it has entered into a further 2D
seismic contract with Geophysical Services Incorporated of Calgary to acquire a
minimum 8,000 km of 2D seismic with an option for the Company to extend the
survey subject to agreement between FOGL and Hardman. The programme is scheduled
to cover areas in both the 2002 and the 2004 licence areas and will concentrate
on areas of interest identified in the initial 9,450 km survey which has just
been completed.

The new 2D seismic programme will use the GSI Admiral boat and is expected to
commence in June 2005. Hardman Resources Ltd is also a party to the new 2D
seismic contract.

Reasons for the placing

FOGL was formed in May 2004 to invest in an offshore oil exploration programme
in licence areas south and east of the Falkland Islands. It was admitted to AIM
in October 2004, raising £12 million in the process. FOGL then held (and
retains) a 77.5% interest in licences covering approximately 33,700 sq km;
Hardman Resources Limited holds the remaining 22.5% interest in these licences.
In December 2004, the Company was awarded a 100% interest in licences over an
additional 50,000 sq kms adjacent to its existing licence areas.

On 3 May 2005, FOGL announced the preliminary results of a 9,450 km 2D seismic
survey over most of its licence areas. The survey has identified 130 leads, far
in excess of the eight leads identified at the time of the AIM IPO in 2004.
Given the positive results, FOGL announced that it planned to significantly
increase the scope of its exploration programme.

Use of proceeds

The net funds raised, together with existing cash resources which totalled
approximately £11,000,000 at 31 March 2005, will enable the Company to fund its
plans to conduct further seismic surveys targeting all the leads but with
particular emphasis on the 50 most promising. The aim will be to develop about
20 high quality, technically sound and potentially economically viable drilling
prospects. This programme is expected to include a minimum of 8,000 km and
possibly up to 15,000 km of 2D seismic survey, through the contract with GSI
referred to above, and possibly a 2,000 sq km 3D seismic survey. The funds
raised will be sufficient, in the opinion of the Directors and on the basis of
current estimates, to fund this work and cover the Company's overheads through
2006.
The strengthened funding position should also improve the Company's position
when negotiating with potential farm-in partners.

Further details of the placing

Application will be made to London Stock Exchange plc for the New Ordinary
Shares to be admitted to trading on AIM. Admission of the New Ordinary Shares is
expected to become effective on 3 June 2005.

The New Ordinary Shares will be issued credited as fully paid and will rank pari
passu in all respects with the existing ordinary shares, including the right to
receive all dividends and other distributions declared or paid thereon following
admission.

The placing is conditional upon the placing agreement between KBC Peel Hunt Ltd
and the Company having become unconditional in all respects and not having been
terminated prior to admission of the New Ordinary Shares, and admission of the
New Ordinary Shares becoming effective by 3 June 2005 or such later date (not
being later than 17 June 2005) as the Company and KBC Peel Hunt may agree.

John Armstrong, Executive Chairman, commented:

'The results of the 2D seismic announced in May were very encouraging and far
exceeded our most optimistic estimates. It was clear from the large number of
leads identified that the amount of work needed to maximise the potential of our
acreage had increased significantly.

'The proceeds of this placing will provide us with the necessary funds to expand
the scope of our planned exploration programme and give us the best possible
chance of success.'

Enquiries:

FOGL
John Armstrong, Executive Chairman                               [phone]
David Hudd, Deputy Chairman                                        07771 893 267

KBC Peel Hunt Ltd
Jonathan Marren                                                    020 7418 8900

College Hill
Ben Brewerton / Jim Joseph                                         020 7457 2020



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