Falkland Oil & Gas

Interims out. Here is a snippet:

Our goal remains to drill the first exploration well on our licences in 2008,
however in order for this to take place we need to secure a rig. We are
examining a number of options:

* Combining with the other oil and gas operators in the Falklands
region with a view to building a consortium to create a drilling
campaign that provides a more attractive proposition to rig
contractors.

* Ceding an equity stake in FOGL or an interest in the licences in
exchange for providing a rig.

* Obtaining a rig through a farm-in partner.

We believe that we will be able to secure a rig for our 2008 drilling programme
during the course of 2007.