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/

More sells than buys today so i think the sp might slip further not looking good graph wise.

Marky..That graph could be reversing now that funding is out of the way and the Rig not much more than a week away from the Falklands...hope so anyway as I bought some this morning :-)

Going to be one big over hang i would think for a while Chav,plenty of time for this price to drop a bit more.Good luck with your holding.

Will pick up the clog for a bit banter soon.

FOGL will issue around 112 million new shares, equating to about 50 per cent of its share capital prior to the funding, at a 14 per cent discount to yesterday’s closing price. While the terms of the placing are quite dilutive the money does enhance the drill programme.

The Loligo well will now be able to test three deeper reservoir targets which, according to FOGL, contain about 54 per cent of the prospect’s total resource potential. Additionally the firm has much more flexibility when it finalises its plans for a second well.

43p is an amazingly small discount in the current climate, especially given that £48m is no small beer for an expo company to raise for a Wildcat drill.

I see that PRO now on ADVFN is telling people he bought a bucket load at 38p not 50p
RKH is Blue
FOGL Red.....says it all

http://www.portsmouth.co.uk/news/local/east-hampshire/veterans_back_pm_in_latest_falkland_islands_row_with_argentina_1_3438926

Good to see you post smiler are you still holding?

aye markymar still !! been busy but still got my eye out & waiting for lift-off ;- )

Jan. 19 (Bloomberg) -- Thirty years after Margaret Thatcher fought a 74-day war with Argentina over the Falkland Islands, the prospect of an oil boom is reviving tensions.

Oil explorers are targeting 8.3 billion barrels in the waters around the islands this year, three times the U.K.’s reserves. Borders & Southern Petroleum Plc will drill the Stebbing prospect next month, one of three Falkland wells that Morgan Stanley ranks among the world’s top 15 offshore prospects this year. Meanwhile, Rockhopper Exploration Plc is seeking $2 billion from a larger oil company to develop the Sea Lion field, the islands’ first economically viable oil find.




http://www.businessweek.com/news/2012-01-20/oil-grab-in-falkland-islands-seen-tripling-u-k-reserves-energy.html

http://www.moneyam.com/action/news/showArticle?id=4295081

Could be an interesting year ..... Did Cynic ever buy in ?? ;- )))

yes; i bought a few yesterday and also traded them previously ..... i suspect i'll try to have the discipline to sell most/all before the drilling result, as it's fairly likely that sp will have been forced way ahead of the game by the lemmings

I think that we are going have some fun !.

one to watch ... ;- )

Going to be a very busy thread i think soon,smiler if you get a chance update the header.....cheers marky

http://en.mercopress.com/2012/01/22/falklands-confirms-second-oil-rig-has-reached-the-islands-spudding-planned-for-monday

Sunday, January 22nd 2012 - 05:44 UTC

Falklands confirms second oil rig has reached the Islands; spudding planned for Monday
Falklands oil industry sources confirmed that the semi-submersible Leiv Eiriksson oil exploration rig has reached Falklands’ waters and should be spudding its first well next Monday.

Aye will do

Done ;- )

By STEVE HAWKES, Business Editor
Published: Today 22nd Jan 2012

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AN AMERICAN energy giant with links to the Pentagon is poised to spend at least £1billion on the British oil rush in the FALKLANDS.

A deal would transform the political stand-off between Downing Street and Argentina over the future of the islands.

Four execs from Houston-based Anadarko flew to Port Stanley last week to meet with Rockhopper, a UK explorer that's struck 700 million barrels of "black gold" off the Falklands' north coast.

The private jet landed Wednesday and parked at the military airbase.

Sources claim Anadarko made a provisional offer to invest in Rockhopper's mammoth discovery and develop it.

One told The Sun: "A deal has been tabled.

"Anadarko has got approval to do this from the highest levels in the US.

"And they've been reassured the British will stand by the islands."

The US giant's board of directors include Kevin Chilton - a former commander of US Strategic Command. Another, Preston M "Pete" Geren III, was in the US Department of Defence for much of the last decade.

If the deal goes ahead, American involvement would be a hammer blow to Argentina, a huge coup for David Cameron and change the lives of the Falklands' 3,000 islanders.

Argentine president Cristina Kirchner has been outraged by the British oil campaign in the Falklands - restating Argentina's rights to "Las Malvinas".

In a show of solidarity most South American countries have now banned ships doing work in the Falkands from docking at their ports.

PM David Cameron blasted Buenos Aires last week for "colonialism".

The support of Anadarko would be tacit approval to UK sovereignty and complete the Falklands' switch from farming outpost to the latest frontier in the world's multibillion-dollar oil industry.

No major discovery had been made in the region before Rockhopper's "Sea Lion" discovery 100km to the north of the islands in mid-2010.

Since then it claims to have also discovered a gas field and a smaller oil field.

Despite the war of words with Argentina, SIX energy companies have approached Rockhopper as it wants to bring in a partner by the end of March to develop its Sea Lion discovery and pump millions of barrels to the surface.

Two are British, Cairn Energy and Premier Oil, the rest are also American, Hess, Noble and Murphy.

But Anadarko is by far the biggest - worth $40 billion. It was a minority partner with BP on the disastrous Deepwater Horizon blast in the Gulf of Mexico.

Rockhopper last year said it needed to raise £1.3 billion to develop its Sea Lion field.

It plans to bring the oil to the surface via a drilling rig on a tanker that would moor in the ocean. This would have the capacity to store up to 3 million barrels of crude.

A final decision on which partner Rockhopper chooses is likely in the next eight weeks.

The company refused to comment yesterday.

http://www.thesun.co.uk/sol/homepage/news/money/4077559/US-firms-1bn-for-Falklands-oil.html