First Oil is pleased to announce that it has obtained interests in three licences in the UKCS as a result of the recent 25th round announcements. Two of these licences will be operated by First Oil to add to our existing operated and non operated positions in the UKCS. These awards are of significant benefit to First Oil as it continues grow as a diverse oil company with exploration, appraisal and development opportunities to add to our 13 producing fields.

The licenses awarded are as follows:

Block 9/10c (First Oil 40%, Sagex 60% and Operator) is located in the Northern North Sea, on the border to Norway. The block contains multiple prospects and the work program is focused on obtaining and reprocessing further seismic data, followed by a firm well.

Block 29/6a (First Oil 70% and Operator, Sagex 30%) is located in the Central North Sea, adjacent to the Bittern and Curlew fields. The block contains the Centurion oil discovery as well as multiple prospects. Centurion was discovered in 1987 and tested oil at rates of up to 5029 barrels of oil per day in Fulmar Sandstone. The work programme for the license is focused on obtaining and reprocessing further seismic data, followed by a firm well.

Block 53/3e (First Oil 100%), is located in the Southern North Sea near to our recent development of Wissey and our 24th round licensing success in 53/3b. The acreage has two readily identifiable prospects and the work programme is a contingent well dependent on the results of our 53/3b exploration. (December 2008)