Oil and gas company Falkland Oil & Gas Ltd. (FOGL.LN) Thursday said it intends to raise GBP50 million to spend on drilling next year, adding it is in advanced talks about securing a rig.

Falkland said it and its partner, BHP Billiton Ltd. (BHP.AU), are in advanced discussions with Desire Petroleum PLC (DES.LN) to contract the Ocean Guardian rig to drill an exploration well in the East Falklands Basin.

The company added it is also seeking to contract a deepwater rig for further exploration work in late 2010.

Falkland said it intends to place 43.5 million shares at 115 pence a share, a 15% discount to Wednesday's closing price.

Oriel Securities is handling the placing, which isn't underwritten.

Company Web site: www.fogl.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com
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