Received a letter from fleet street publications dated 05/10. Apparently 60 billion barrels of oil are waiting to be pumped to the surface from the FALKLANDS(yes the ones which Argentina attacked). A company reponsible for extracting the oil is due for floatation any week now!. They expect the share price to jump 100% to 1400% within 1 year. Any ideas...

The new company for float this thursday is 'Falklands Oil and Gas' the shares have been subscribed at 40p private. And the floatation price will be 40 too. Personally I'm in for the short term, with the price of oil at an all time low and the falklands proved 5th largest of oil reserves in the world (that's why we wouldn't let them go so easily) then the market interest both public and institutional will be massive. You would be silly not to have a punt at Falklands Oil and Gas this Thursday! Just take a look at PET, NOP, DES.Market interest is big in oil companies at the moment and with a new float i hope to make 10-25% conservative!!

Captain Naylor

I wouldn't be at all surprised to see the subscribed price exceed 40p substantially, in view of the current Bullish outlook on all things energy. But, can you tell me where the info that 'Falklands proved 5th largest oil reserve in the world' comes from. My own assumption was that the FIs and surrounding areas are believed to hold reserves of oil, but currently exploration is ongoing and we have yet to see production from any of these fields. Certainly a few years ago, nothing was found to the North. Happy to be corrected, but it would be useful to have some facts.

Regards

PTH

just a question ...if u hve subscribed how do you find out about your allocation , as i believe the shares certs are not issued till some days later ...so u can't really sell in the first day if it shoots up ... so if it is likely to open up perhaps best to buy on the day and sell later to make a little profit ! other views welcome

ptholden,

"IF" the reserves they think are there are proved, then the FI's will be the 5th largest in the world!

They just have to prove it first!

Worth a speculative play surely?


kantone,

Good point, the share certs wobn't be sent out until the 28th October!
So we will only have paper profits until we have the cert in our hands, and the cynic in me believes the price may dip around that time.

I intend to hold for the longer term, so not worried about the short term price movements, and I will be waiting until the results are known before deciding whether to sell or not.

CaptainNaylor

Agree with you that there are vast reserves down there, the Argies have been drilling there for years, but its not going to be easy to get it out, but they will, offshore technology moves at a terrific pace as evidenced in the North Sea and N Atlantic. I am inclined to wait and see how the shares move before commiting,as floats of this nature can be unpredictable.

as the above bbs from motley fool point out, DES was a similar story many years ago and they didn't manage to find any oil. I imagine the environment off the falklands is less than hospitable and thus expensive to drill. Also the recent release of a Junior Oils fund suggests the small cap oil sector has all the makings of "bubble" to me. Certainly FOGL has stagging possibilities but long term cannot see anything other than disappointment.

bonfield,

I think that's a little unfair, they have some decent seismic already, and are using the funds for the next stage, which is the first chance to prove what actually lies under the sea there.

Given the improvement in technology, and the persistent belief by a number of companies over an extended timeframe that oil exists in large quantities, I genuinely believe they will find oil, and in abundance.

Desire are still there, now with Hardman as a partner, a solid company with a good track record in exploration, so I am comfortable with the risk here.

With regard to the difficulties in extracting the oil in such a hostile environment, I presume they wouldn't be looking if they weren't confident it could be done!

I read recently that two days after invading the falkland Islands, General Galtieri was offering exploration blocks for sale to American oil companies, and there is more than a suggestion that this was the real reason for the Falklands war! (And maybe also the real reason for their subsequent recovery?!)

The Falklands war was definitely about oil. The Argies new it and so did Thatcher. In fact it's been known in the oil industry since the 60's that there is oil there. Bloomberg yesterday morning had an interview with someone from RAB. They have taken a large position with FOGL. For me I'll wait and see before I jump in. No matter what your view is there is no getting away from the fact that this is frontier stuff with all the risks that go with this type of exploration. It can fail as DES has done so in the past.

Good luck to those who invest.

MS

I have just called, and Capita have now confirmed my application for 2500 shares was sucessful!

The telephone number for Capita is 0870 162 3100.

mickey,

Yes you're right, it IS "frontier stuff", but with that goes a higher reward IF allturns out well!

I know DES failed, but they are still there, and I'm sure it's only a question of drilling in the right place!

The technology points to huge deposits, I find it hard to believe that eventually they won't strike oil.

Andy

I do hope so. Those who have been loyal to DES deserve a break. I'm just waiting to see what happens. If or should I say when they strike oil I hope I'll be in time to jump on board.

Good luck

MS

Can anyone give me the name of this company exactly???

rhausar,

from their website; http://www.falklandoilandgas.com/fog/corporate.php


- Falkland Oil and Gas Limited (FOGL)

FOGL was formed in 2004 to invest in an offshore oil exploration programme covering approximately 33,700 sq km south and east of the Falkland Islands. FOGL holds a 77.5 per cent interest in seven offshore production licences granted by the Government of the Falkland Islands.

Plaudits to 2kpromeome on ADVFn.


http://www.rigzone.com/news/article.asp?a_id=16848

Well worth a read if you have applied for shares!

A smallish map that shows the exploration area in relation to the Falkland islands,

price now 52.50p!

Another decent article.


http://www.falkland-malvinas.com/Detalle.asp?NUM=4415

Seemed to be quite a few posters on ADVFN who seemed to think this would be a 'killing' today. Might well still be, but looks like quite a few could be in for longer than they intended!

Did any one just see David hudd on CNBC? He basically said what we already know and said that the waters off the shetland islands were as bad as the falklands. You can prob listen to it on CNBC website.
Im waiting before I buy into this one. When the rush is over I think (IMO) that the price will drop.

Regards,

wilbs

ptholden,

Well it would seem that several brokers were unable to trade this online at 08:00, and others had feed problems. I think this has scuppered what would have otherwise been a frantic start, which is a shame because I think the market needed a decent float to attract some interest back into it.


All oil and exploration stocks seem to be being hit, maybe some profit taking going on?