STRATEGY

•FOGL seeks to add shareholder value by pursuing an aggressive exploration programme in its licences to the south and east of the Falkland Islands. Exploration drilling will continue in the deep water areas of FOGL’s licences in the first half of 2012. If successful, this drilling could lead to the development of a new hydrocarbon province in the South Atlantic.

Next Phase of drilling

In the first half of 2012 FOGL is planning to drill two wells in the deep water area of its licences.
FOGL has contracted the Leiv Eiriksson rig to undertake this drilling programme. The rig is due to arrive in the Falklands in early 2012 when it will initially drill two wells for Borders and Southern Plc (B&S), before commencing the FOGL drilling programme. The B&S wells are to be drilled on the Darwin and Stebbing prospects. The results of these wells will be of interest to FOGL, because we have similar plays and prospects within the southern part of our licence area.

The first well to be drilled in the FOGL programme will be on the Loligo prospect. A number of options exist for the second well, including potentially a well on Scotia, a prospect within the Mid Cretaceous Fan Play. The final decision on which prospect will be targeted by the second well will be guided by the results from Loligo.

Funding

As at 7 September 2011 FOGL's available funds, including the BHP Billiton settlement, were $150.8 million. The Company is debt free.


2012 Drilling Programme

The Leiv Eiriksson a harsh environment rig has been drilling wells offshore Greenland for Cairn Energy. That campaign is expected to finish by the end of November 2011 after which the rig will head south to the Falkland Islands. The rig will first drill two wells (about 90 days drilling) for Borders and Southern Plc (B&S) before moving on to the FOGL programme. The transit time from Greenland is expected to be approximately 60 days.

A great deal of work has gone into the planning of the FOGL drilling campaign and over the preceding years a large amount of data has had to be collected to so that the drilling can take place.

Seismic data was acquired from 2004 to 2007 and again in 2011, CSEM in 2007, site surveys in 2009 and 2011 and metocean data, from permanent current meters, in 2009/10. Well planning essentially started in 2009 with the drilling of three, 200m deep, geotechnical boreholes. This data helped with the planning of the shallow section of the Toroa well (FI 61/05-1) and has been extensively used in the planning of the deep water programme.

The first well in the FOGL programme will be on the giant Loligo prospect. A second well will also be drilled by FOGL using the Leiv Eiriksson and site surveys have been acquired over the following prospects: The Nimrod Complex and the Vinson prospect in the Tertiary Channel Play, the Scotia or Hero prospects in the Mid Cretaceous Fan Play and the Inflexible or Endeavour prospect in the Springhill Sandstone Play. Options that are currently being considered depend upon the results of the first well on Loligo. The final play in the FOGL acreage is in the Fold Belt in the south west of the FOGL acreage. This play is being tested by B&S at their Stebbing prospect. Similar features exist within the FOGL acreage and the results of the well will be closely monitored. In addition the B&S, Darwin well is targeting a tilted fault block which again shows great similarities with several prospects in the FOGL portfolio (Inflexible, Thulla etc.). Depending on the results of Darwin FOGL may consider a well on Inflexible as the second well in the programme.

FOGL’s main focus is on the two younger plays, the Tertiary Channel and the Mid Cretaceous Fan play. FOGL has been working on the Mid Cretaceous play for some time but it was only in late 2009, when the seismic data had been fully reprocessed, that it became clear that this major new play was viable. The play is analogous to the ones being successfully targeted in West Africa (the Tullow Jubilee field in Ghana and other discoveries along that margin) and the general geology, depositional setting and even the AVO response (Class II response over Scotia and Hero) are remarkably similar. The two main prospects, Scotia and Hero, both contain prospective resources in excess of 1 billion bbls. One of the key features that makes this play so attractive is that the reservoir sands sit directly above the mature Aptian oil source rocks which were sampled in the DSDP wells to the East of the FOGL acreage.

2012 DRLLING TARGET LOLIGO

The shallowest target alone covers an area of over 600sqkm. The Loligo prospect was first mapped in 2006 and has been re-mapped and re analysed several times since then. It is a large stratigraphic trap which is supported by a very consistent Class III AVO response on the seismic data. It is an ‘easy to map’ anomaly which stands out clearly above the background seismic responses when compared to the entire basin. In addition, it sits directly above an old high which used to separate the Southern basin (Fitzroy sub-basin) from the Northern basin (Volunteer sub-basin). This old high seems to be acting as a focus for hydrocarbon migration from deeply buried source rocks in each of the sub basins.

Beneath the southern part of Loligo several other prospects within the Tertiary Channel play, overlap and may be penetrated by one carefully located well. The deeper prospects (each covering an area similar to Loligo) have been called Trigg and the Three Bears. Together these prospects are called the Loligo Complex. The prospective resources (recoverable oil) associated with the Loligo complex, are in excess of 4 billion bbls of oil or over 25tcf of gas.




FOGL is focused exclusively on offshore oil and gas exploration in the Falkland Islands.

We are pursuing an aggressive exploration programme that could lead to the development of a new petroleum province in the South Atlantic. The joint venture operations have now moved into the drilling phase.
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Most prospects in 2,000 – 4,500 feet water depth (610 – 1372m)

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Target horizons: 6,000 – 13,000 feet below sea bed lever (1829 – 3962m)

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Falklands weather is similar to West of Shetland

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Remote location but there were no major issues during 1998 drilling campaign

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Anchored semi-submersible or drillship for exploration drilling

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Tried and tested technology for developments



Falkland Oil and Gas Limited Licence area.




FINANCIAL SUMMARY http://www.fogl.com/fogl/en/Investors/performance

FOGL HOME http://www.fogl.com/fogl/en/home

http://www.stockopedia.co.uk/content/falkland-oil-and-gas-2012-its-time-63024/

That 3p means cynics short has made another mil, so he can stay in Nice for an extra day.,.

BOR have letter of intent for 2 wells late 2011, i expect FOGL to come will jump on tha band wagon and borrow rig.

cashed in the profit here a few days ago

Bon d'entendre que cynique, un bice n'est pas un but lucratif jusqu'banque

beaucoup de temps pour prix de l'action l'automne anns asa loin

exactly my oft expressed sentiments!

Is that a Google auto-translation marky?

118.50p

The only Malvinas oil shares on the rise today

Do I see >> cynic & marky -- as a waste of time posters -- talking about the past

I think this has got to be the best value exploration company in the falklands. They have a massive accerage and the shares look very cheap at current levels.
Once they have sorted out the rig to which they must be getting close now, then I think there is going to be alot of excitment around this stock as the market wakes up to the massive potential.

I have held shares and followed Desire for the last 12 years and watched the other Falkland companies come to the markets and gain their acreage and de risk it through seismic so I think I have a good idea to what is good and what is bad and what they might be sitting on.

A lot of work has been carried out over the years to de risk the NFB and holes have been drilled and some have been success with either gas or oil find.

The SFB where BOR and FOGL are only one prospect has drilled to which came up dry rumour was it was coal hence FOGL so called BHP pulled out which doesnt give much confidence to the acreage they gave up.

BOR have a letter of intent for a rig to drill 2 holes in a years time now I would think that FOGL will also share this rig and drill a couple of holes as well as getting deep water hi spec rig over also Very expensive.

So the conclusion is that FOGL shares will not do a thing until they drill in a year and a half and then it will be a lot riskier than the NFB as so little is known and all the targets are all very deep and expensive to drill and I can think of less riskier and better places to stick my money than sitting in a share which is not going to do a thing for the next 18 months.


So cielo if you dont like what I say stick me on filter and then you wont have to read what I post.

Not much of a reaction in the FOGL sp to the DES duster. Worth buying at c100p maybe ready for the next FI drilling?

starting to lose support... 60-70p on the line.

thanks H ..... had taken that one off my radar, but it's almost money/rope, and hence unborrowable on open market

Maybe, but short when RKH spuds & approaches TD would be risky, imo.

i've missed something for i thought FOGL's prospects were an awful long way from RKH's

They are, but they all move in sympathy. DES, FOGL, RKH & ARG to varying degrees.

have just managed to short some more ...... indian rope trick!

Good short, cynic.

so it is .... and think i may be staying that way for a while yet!

Yes, North Sea shines while the Falklands falter.

Exploration Update
FOGL, the oil and gas exploration company is pleased to announce an exploration update with respect to its licence interests offshore the Falkland Islands and in particular to its 100% owned and operated southern licences. FOGL also holds a 49% interest in licences collectively referred to as the northern licences in which BHP Billiton holds 51% and is operator.

Highlights
Site Survey for FOGL's 100% owned southern licences to commence in H1 2011

1,300km of 2D seismic may also be acquired to assist with prospect definition and selection of drilling locations

Negotiations are currently underway with respect to securing a suitable deep-water rig for drilling in FOGL's acreage

Analysis of Toroa results shows no adverse implications for FOGL's deepwater prospects.