RAB Capital has cut its stake in Falkland Oil and Gas Ltd.

RAB, which is one of the company's original investors, sold 4.35m shares in the oil and gas explorer. This cut its direct holding to 21.7%. Including warrants and other interests, RAB's underlying stake is 34.1%.

The sale was on 22 February so it was before FOGL's 2009 results were announced yesterday.

FOGL has secured the Ocean Guardian, the drilling rig contracted by Desire Petroleum, to drill a well on the Toroa prospect in the East Falkland Basin. Drilling should start before July.

Joint venture partner BHP Billiton is seeking a drilling rig that can be used in the deep water south of the Falkland Islands. It is hoped that deepwater drilling could commence before the end of 2010.

The mining and oil giant agreed in the autumn of 2007 to earn a 51% stake in the explorer's licenses to the east and south of the Falkland Islands in return for paying 68% of the costs of two wells and other exploration work, plus the reimbursement of $12.75m (£7.8m) of past costs.

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