Falkland Oil and Gas Limited

Falkland Oil and Gas Limited is committed to maintaining high standards of health, safety, environmental and social performance across all its oil and gas exploration and development operations. To achieve this we will:

• As an integral part of our business, identify, assess and manage the HSES risks to people, the environment and assets in order to avoid adverse direct or indirect effects from our operations.
• Ensure that our operations comply, as a minimum, with applicable health, safety, environmental and social laws and regulations, as well as best practicable industry standards.
• Maintain high ethical standards in carrying out business activities.
• Provide necessary leadership and resources to enable effective HSES management throughout our organisation.
• Prevent and minimise the impact of our operations on the environment.
• Ensure continuous improvement of HSES performance through the setting of objectives and targets and focused auditing, reviews and external benchmarking.
• Select competent staff, contractors and suppliers to manage and support the business.
• Ensure that a high priority is placed on emergency preparedness and contingency planning, and that any plans are tested regularly to ensure that any incidents are responded to in a timely and effective manner.
• Foster a culture where accidents, incidents and near misses are reported and investigated, and the lessons learned are shared.
• Consult with and respond to the concerns of our stakeholders on our health, safety, environmental and social performance.
• Ensure that this policy is: - clearly displayed in all FOGL premises and operational sites, provided to all contractors, and made publicly available.

The Company’s directors, employees and contractors have a responsibility for maintaining high HSES standards and this Policy will be used to guide their activities.

Tim Bushell
Chief Executive Officer

The Environmental Impact Statement (EIS) which covers the entire FOGL acreage was submitted in September 2011.  It is currently under consideration by the Falkland Islands authorities and it is hoped that approval will be received in late December.  Additional EIS addenda will be required for each of the FOGL prospects and these are currently being drafted.  Oil spill response plans are well under way and will be submitted for approval shortly.