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.
•
Most prospects in 2,000 – 4,500 feet water depth (610 – 1372m)

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

•
Falklands weather is similar to West of Shetland

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

•
Anchored semi-submersible or drillship for exploration drilling

•
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/

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

Add a comment

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

Thats better smiler

'The Falkland Islands will always be Argentine territory'

http://www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/9030275/The-Falkland-Islands-will-always-be-Argentine-territory.html

Short video, worth a look.

http://www.iii.co.uk/tv/episode/how-stable-investment-falklands

http://www.dailymail.co.uk/debate/article-2090575/Argentinas-Falkland-Islands-Its-oil-it.html?ito=feeds-newsxml

http://www.upi.com/Business_News/Energy-Resources/2012/01/24/Falklands-oil-quest-draws-US-investor-Anadarko/UPI-88151327440523/?spt=hs∨=er


STANLEY, Falkland Islands, Jan. 24 (UPI) -- The Falkland Islands' search for oil in challenging offshore conditions in the South Atlantic is drawing interest from U.S. investors, giving the islanders hope a potential deal could offer some insurance against Argentine claims on the British overseas territory.

Reports of talks on a possible takeover or majority acquisition in Rockhopper Exploration Plc by Anadarko Petroleum Corp., one of the world's largest independent oil and gas exploration and production companies, already have benefited shareholders in the company as its stock surged on London markets.

Rockhopper is the only one of about half a dozen oil companies to have found oil after extensive and deep drilling in the Falklands waters.

The islands' oil exploration has become increasingly contentious as Argentina pursues its claim of sovereignty over the islands. Military-ruled Argentina invaded the islands in 1982 but was repulsed by British forces in a 74-day conflict that caused the deaths of about 1,000 troops and civilians.

In later years of civilian rule, Argentina revived its territorial claim and since 2009 has intensified its bid with an international campaign.

The Falklanders sat they feel encouraged by U.S. investor interest in the oil exploration. Funding of Rockhopper's expensive exploration program faced difficulties in present European economic climate. Anadarko's involvement could lead to a deal that will meet Rockhopper's urgent need for about $2 billion in further exploration costs.

The Falklanders' optimism is fueled by the expressed logic that U.S. corporate investment in the oil exploration program will introduce an international dimension and implied U.S. interest.

The islanders are aware that U.S. corporate investment doesn't equate with U.S. political or strategic interests in the area but they remain optimistic that such a large investment will generate interest in Washington.

Driven to distraction by Argentina's frequent verbal attacks on Britain and the Falklanders' legitimacy as an overseas British territory, the local government sees a U.S. entry of any kind as a positive happening.

A U.S. State Department comment last week backed self-determination for Falklands. Argentina interpreted the comment as a vindication of its diplomacy but the Falklanders see self-determination as their ultimate strength. The islands are inhabited mostly by people of British origin for whom self-determination means staying within a British sphere of influence.

State Department spokeswoman Victoria Nuland said the Falklands were "a bilateral issue that needs to be worked out directly between the governments of Argentina and the United Kingdom. We encourage both parties to resolve their differences through dialogue in normal diplomatic channels.

"We recognize de facto United Kingdom administration of the islands but take no position regarding sovereignty," Nuland said.

Rockhopper hopes to start producing oil by 2016. If a deal with Anadarko goes through as widely speculated, Rockhopper will still be looking for another $400 million. Several other Texan oil firms, including Noble Energy Inc., Hess Corp and Murphy Oil USA Inc. are interested, as are British oil firms Cairn Energy and Premier, the London Sunday Times newspaper reported.

Anadarko was a minority owner in BP's Macondo well, which killed 11 oil workers and spilled almost five million barrels of oil into the Gulf of Mexico in 2010. Anadarko agreed last year to pay BP $4 billion to settle claims over the disaster.

Anadarko has headquarters in The Woodlands, Texas, and employs about 4,700 people worldwide


Read more: http://www.upi.com/Business_News/Energy-Resources/2012/01/24/Falklands-oil-quest-draws-US-investor-Anadarko/UPI-88151327440523/#ixzz1kSQdvevW

http://en.mercopress.com/2012/01/27/falklands-oil-industry-says-first-round-of-exploration-was-hugely-successfulFriday, January 27th 2012 - 02:44 UTC

Falklands’ oil industry says first round of exploration was “hugely successful”
Falklands’ oil industry sources said the round of oil exploration began in 2010 with the “Ocean Guardian” rig and just concluded, involving Rockhopper Exploration and Desire Petroleum, was “hugely successful” with several major oil and gas discoveries


The comments follow on reports from London saying Energy Secretary Chris Huhne stated that the initial oil explorations in the waters surrounding the Falkland Islands were “disappointing,” although he indicated the course may change in the future.

During an energy debate in the House of Commons on Thursday, Tory MP for Romford Andrew Rosindell asked the minister “Have you made an assessment of the energy sources that may or may not be available in some of the British overseas territories? Particularly, I refer to the Falkland Islands.”

“It is indeed the case that there is exploration under way. Some of the initial exploration that was undertaken in territorial waters of the Falkland Islands was disappointing but that of course may change in the future,” the Secretary said.

“We don’t know exactly the source of the news or in what context, but to be clear Rockhopper with its Sea Lion field was hugely successful. But if Minister Huhne did say that then he needs to be corrected”, pointed out the Falklands oil industry sources.

For almost two years several Falklands’ government licensed companies have probed the area surrounding the Islands.

With the return this month to Scotland of the “Ocean Guardian” Desire Petroleum and Rockhopper have ended their first round, but a second rig “Leiv Eiriksson” has just arrived to drill several exploratory wells for Borders & Southern and Falkland Oil and Gas, mainly to the south and east of the Falklands.

Meanwhile Rockhopper has appointed Bank of America Merrill Lynch to lead the process of finding a partner for its 2 billion dollars oil project in the North Falkland basin Sea Lion field, one of the largest discoveries made in the region so far, with recoverable reserves estimated at nearly 500m barrels of oil.

Apparently several international companies are interested in teaming up with Rockhopper and the Sunday Times reported that Texas based Anadarko is in talks “that may lead to a takeover of the company”.

Rockhopper has said it plans to start commercial production in 2016 when it hopes to develop the Sea Lion field with a giant oil tanker moored over it. The ship will be fitted with a drilling rig and have the capacity to store up to three million barrels of oil, which would be offloaded to other tankers.

According to Houston press reports Anadarko made a provisional offer to invest nearly 1.6 billion dollars in Rockhopper and four Anadarko executives flew to Port Stanley recently to meet with the UK explorer, and one said that the provisional offer to invest in Rockhopper’s Sea Lion discovery and develop it is “on the table”.

How the Falkland Islanders are preparing themselves for either untold riches... or Armageddon




http://www.dailymail.co.uk/news/article-2092942/How-islanders-Falklands-preparing-untold-riches-Armageddon.html

OF interest


Published on Sunday 29 January 2012 14:17



GENERAL Sir Mike Jackson – the former head of the Army – has said Britain would be unable to reclaim the Falkland Islands if they were seized by Argentina now.


Sir Mike said it would be “just about impossible” to win back key strategic strongholds as a result of the demise of jet capable of launching from aircraft carriers.

He said Britain defences in the area have improved “by a factor of several tens” since 1982.

But, in an interview with the Sunday Telegraph, admitted losing the islands is not out of the questions.

He said: “The official answer will be that it would not be possible for the Argentinians to gain a foothold on the islands, in particular to take Mount Pleasant airfield, which is key to the “We have a large international-sized airfield to allow for very rapid reinforcement by air, should circumstances so require. But I suppose I have learned in life, never say never.

“What if an Argentinian force was able to secure the airfield? Then our ability to recover the islands now would be just about impossible.

“We are not in a position to take air power by sea since the demise of the Harrier force.”

Tensions have been mounting between Argentina and the UK following months of escalating rhetoric.

Buenos Aires reacted angrily in 2010 when Britain allowed offshore drilling for oil in the islands’ waters, and the Argentinians were also irritated by the recent announcement of Prince William’s forthcoming RAF posting to the islands.

The latest volley of comments has seen the South American country’s president Cristina Fernandez hitting back at David Cameron, who accused Argentina of colonialism.

She said: “When they say these things it’s exactly because they don’t have reasons or arguments.”

Asked about job cuts in the armed forces, Sir Mike said the fewer numbers were not too much of a problem as long as the UK is not engaged in a one-on-one battle with another country.

“This will be the smallest Army since the Napoleonic wars, he said. “My understanding is that we’re heading for 82,000.

“Right now there is no existential threat to the UK. It’s very hard to see when we would be involved in state-on-state warfare which threatens the existence of this country.

“If that were to happen, there would be time to move back to where we used to be.”

Brigadier Bill Aldridge, Commander of British forces in the Falklands, said: “I am entirely confident that I can do the job that is required of me.

“Deterring aggression is my top priority but I am fully confident that I have the capability to defend the islands.

“I am not expecting to hand the islands over to anybody and therefore put us in a position where we would have to retake them.”
British defence plan.

http://www.scotsman.com/news/uk/another_falklands_war_would_be_unwinnable_now_says_ex_army_chief_1_2085287

http://www.marinetraffic.com/ais/default.aspx?mmsi=308243000&centerx=-58.76588&centery=-53.59546&zoom=10&type_color=9

the Leiv Eiriksson position

Falkland Islands: Royal Navy packs considerable punch, warns William Hague

William Hague, the Foreign Secretary, has warned that the Royal Navy still 'packs a considerable punch' as HMS Dauntless was deployed to the Falkland Islands.


The Navy’s most sophisticated warship is being sent to the South Atlantic in a move that will send a powerful message to Argentina.


Dauntless will set sail for the Falkland Islands in the coming weeks armed with a battery of missiles that could "take out all of South America's fighter aircraft let alone Argentina's," according to one Navy source.


Although Mr Hague played down the deployment he said the ship was a "formidable vessel".


The Type 45 destroyer is the most advanced anti-aircraft and anti-ballistic ship in the world equipped with 48 Sea Viper missiles and the Sampson radar, which is more advanced than Heathrow air traffic control


The ship is in a league of its own in air defence able to track dozens of multiple targets.

http://www.telegraph.co.uk/news/newstopics/onthefrontline/9052021/Falkland-Islands-Royal-Navy-packs-considerable-punch-warns-William-Hague.html

BOR update

February 2012







Borders & Southern Petroleum plc

("B&S" or "the Company")



Darwin Prospect - 61/17-1 Well Spud



Borders & Southern Petroleum plc is pleased to announce that their exploration well 61/17-1 was spudded on 31st January 2012. The well is located approximately 140 km south of the Falkland Islands. B&S is the operator of the well, holding a 100% interest in licence PL018. It is the first of a two well exploration programme.

The well is designed to test the Darwin East prospect, a fault / dip closed structure with a Lower Cretaceous sandstone reservoir target. The well will investigate geophysical attributes that include a flat spot, amplitude conformance to structure and an AVO anomaly.

It is anticipated that operations will take about 45 days. A further announcement will be made once the well has reached total depth and the wireline logs have been run and their interpretation completed.



For further information please visit www.bordersandsouthern.com or contact:
Pro !

a silly observation .....

FOGL and BOR trickle south
DES and ARG remain neutral
RKH ticks very gently north

A bit like the oil then Cynic? :o)