FOGL, which holds a 77.5% interest in seven exploration licences covering approximately 33,700sq.km to the south and east of the Falkland Islands, has conditionally placed 25,000,000 shares at an issue price of 40p, raising £10 million.

The company also announced a public offer of a further 5,000,000 shares available at 40p per share to raise an additional £2 million.

If the offer is fully subscribed, FOGL will have a market capitalisation at the issue price of £32 million on admission to AIM and the net proceeds of the placing and offer will be approximately £11 million. Dealings in the shares are expected to commence on 14 October 2004.

“We are delighted with the positive reaction and strong institutional support we have received to date and we are now giving the general public the opportunity to take part in the Offer,” said John Armstrong, executive chairman of FOGL.