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/

of Interest

It emerged on Tuesday that a delegation of MPs will visit the Falkland Islands next month, ahead of the 30th anniversary of the conflict, in a move likely to further inflame tensions with Argentina.

Members of the Commons defence select committee are expected to visit the Mount Pleasant garrison and air force base and commemorate the servicemen who died in the 1982 conflict.

"Given that we have a significant military presence in the Falklands ... it is only right that the defence committee goes and sees first – hand what taxpayers' money is being spent on," said Thomas Docherty, a Labour MP on the committee.

Argentina has received the backing of Latin American countries for its claim of sovereignty over the remote, wind-lashed islands, which were occupied by Britain in 1833.

The dispute erupted into warfare April 2, 1981 when Argentine troops seized the islands, only to be routed in a 74-day war that claimed the lives of 649 Argentines and 255 Britons.

Diplomatic friction between Argentina and Britain has intensified since 2010, when the Government authorised oil exploration in the waters near the islands.


Full story http://www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/9083438/Sean-Penn-calls-Prince-Williams-deployment-to-Falkland-Islands-unthinkable.html

I don't know why you lot carry on about Argentina all the time...blah...blah...blah....as far as I'm concerned it's a non starter and that's the final end to any of their claims...zippo...finito...stop....so that's it....if I were Cameron : I would end up being rude to them....

I agree RF their British Islands and thats that !!

I find the politics quiet amusing, hence I post stuff up.

The SP cant get past 61p a bit like Desire cant get past 31p at moment.

It could on result go either way.....I'll be staying put right till the end of FOGL's campaign....a first setback won't matter but should it be positive it will be difficult to get in at the right price unless you just happen to be watching at the time...

FOGL only have a 1 in 5 chance she says.

Edison Investment Research talks about the increase in interest surrounding the Falkland oil story
Friday, February 24, 2012


http://www.proactiveinvestors.co.uk/companies/stocktube/1038/edison-investment-research-talks-about-the-increase-in-interest-surrounding-the-falkland-oil-story-1038.html

Implied their acreage could contain 4.8 billion barrels (I think that was the figure) in which case are we looking at the next GKP?

Interesting read.

I would think that the Falkland oil fields are in the same low risk category as the main UK oil fields situated in the north sea. That is of course if the UK is as serious as they have stated over their determination to defend the Falklands if required.
I like most people feel that the determination of the UK government to do so is as strong as the threat from the Argentinian government is weak.
I say the above not from a feel that anything as basic as the rights of the islanders being taken into consideration but for 2 other reasons.
1 It would be very politically damaging to the UK for them to not defend any attempt at taking the Falklands.
2 There is a huge amount of money involved.

If anyone has full access to Maplecroft, it does have all risks categorized in order of risk, but even so the brief article from the link shows very clearly how much risk there is in investing in many oil producing areas of the world, and the risks of once invested, those investors loosing out.

On reading the article, I feel that my Falklands investment is 'very safe'.
No doubt suitors of Fogl are well aware of world oil risks, and will look at the Falklands in a very favorable light.

According to the Telegraph the UK is number 179 in the list, with Somalia being at number 1.


http://maplecroft.com/about/news/resource_nationalism_index_2012.html

Dup post , Greekman beat me to it ;- )

Great minds etc.

Just read a letter in the Telegraph from an English couple who have been spending few weeks in Argentina.
Although very wary before and on arrival regarding how they would be treated, they were very surprised when the local people on discovering that they were English, treated them in a very friendly way.
It appears that several locals explained that the average Argentinian, had no problem with the Falklands wanting to stay British, and their main grievance was with the Argentinian government and the high inflation rate.

I have no reason to doubt that this is how the Argentinian people feel, although of course there will always be a minority (those that get on TV and in the headlines) who want the Falklands to be taken over by their country.

The reason why I don't doubt this is because I saw the same reactions in Ireland in the late 1970's when the troubles were still near to peak levels.
From 1975 to 1979 I spent several month in Ireland, just south of the border.
When the locals discovered we were English, they went out of their way to treat us friendly.
In fact sometimes it became a bit embarrassing, with us being treated to several pints in a local pub with many apologising for the actions of some of their countrymen.
I must add that they were always very careful who was about when they talked or/and were near to us, as the trust between themselves was always down to how well they knew each other.
I appreciate that many on here do not wish to see any post that mentions Argentina and the Falklands, but this small story in the Telegraph coupled with my own experiences in Ireland, probably says more than many of the more negative headlines put together.

Nice tick up. Might join the party after easter!

be careful as you are buying on rumour and lemming mentality only

During the course of the 5 wells that are going to be drilled including the current one ; you can bet your bottom dollar (or pound) that the sp for at least FOGL will be much, much higher than it is today...can't say the same for BOR but the thing is : with not being in that one as well is that if they hit oil : even if it is not commercial but very close to commercial which means a sidetrack or whatever : the sp will take off like a rocket, have to say that this first well is probably a lot more risky than subsequent wells with FOGL ..but anyway : there is a big, big chance of that happening because a flat spot means : either oil to gas, oil to water or gas to water...so there are some hydrocarbons down there and the FOGL ceo thinks the same about finding some oil in their patch as well.....so I reckon we could have some serious rises here in the next few weeks or so....

Cynic, You are correct and its re-appeared on my watchlist. Its a might!

Called in a few profits elsewhere and keeping my powder dry for better opportunities on any repeat of last years Eurozone issues that I am sure will resurface.

Still may be worth a punt (small) though..

Still on the sidelines - undecided. Any views?

StockMarketWire.com
Falkland Oil and Gas (FOGL), the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, made an overall loss of $6.6m in the year ended December 31 2011.

This was nearly $3m higher than the loss in the previous year.

FOGL started the year with US$69.8m in cash, of which $24.8m were spent on the exploration programme.

The company said it was a year of significant activity in preparation for this year's drilling programme.

During the year a comprehensive site survey programme was completed and a focused 2D seismic survey. A total of five site surveys were completed and these will provide the flexibility to determine the optimum drilling location on Loligo and also on the second well.

Richard Liddell, Chairman of FOGL, said: "We are looking forward to the 2012 exploration drilling programme. The Loligo well, with prospective resources of 4.7bn barrels, will be one of the highest impact exploration wells to be drilled by an independent E&P company this year.

"Either of the likely second well targets have a resource potential of over 1bn barrels. Any degree of success on these wells will be a transforming event for FOGL."

My contact in the Argentinian army has just e-mailed me the following info.

A tender has been put out to arms suppliers re musket balls and powder, also saddles and hay for the cavalry.
He has also noticed increased activity at the main shipbuild yards, where several of the new 'E' type rafts are being constructed.
These new 'E' type rafts carry 2 cannon, each capable of firing a 10lb cannon ball over 50 meters (with following wind).
The first raft 'HMS Kirchner' has passed all sea trials (it didn't sink) and is expected within striking distance of the Falklands by Dec 2014.

Kirchner in a speach due to be released later today will warn the UK to expect 'A mother of all battles' AKA Saddam.

So, it looks like all those 'It will be war again' experts were right.

For gods sake, sell before it's too late.

you never know,many a true word said in jest!

I gather kerchner has upset Spain by proposing to grab the assets of Resol; it's no wonder BP want to sell up in her country.