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/

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.

nice little tic up ;- ) BOR going well too !

Doing fine this morning.....looks like hydrocarbons have been encountered....great news for the rest of the campaign,... if true.....

Something must have leaked out, and I don't mean oil.

The Argies are bonkers.....if they had helped Britain in developing these assets and they would probably have got a substantial reward for doing so...too late now...

anyone think these will go sub 80p again before news? looking for an entry point as too slow freeing up cash b4 this mornings jump

Alex

Looks like she has even succeeded in pi***in off the Chinese now.

http://uk.reuters.com/article/2012/04/18/uk-sinopec-repsol-idUKBRE83H09N20120418

Presumably she has no means of paying for Repsol's assets as Argentina is bust and no one will lend them money.

She obviously thinks Repsol is a steal!

;- ))

2nd July 2012



Falkland Islands Holdings plc



("FIH" or the "Group")



Sale of Falkland Oil and Gas Limited ("FOGL") Shares



Falkland Islands Holdings plc, the AIM quoted international group which owns essential services businesses focused on retail, transport and logistics announces that on 29 June 2012, FIH sold 1.18 million shares in FOGL for £1.01m, generating a profit of £0.77m for FIH. Following the sale, FIH owns 12.82 million shares in FOGL; representing 4.01% of the issued share capital. The funds will be available for the development of the Groups businesses in the Falkland Islands and the UK.



The Board of FIH does not intend to dispose of any further shares in FOGL prior to the completion of the drilling of the Loligo well in the South Falkland basin.

There is confidence for you selling shares when they haven’t even started drilling, unless they have heard about BOR

Quiet happy holding FOGL at moment as lots of upside even if BOR hit more gas.