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/

Todays RNS.

SP down mainly due to many punters always expecting 100% multi mega ground breaking news, so anything less results in disappointment.

If I had a few quid spare, this would be topping up time.

StockMarketWire.com
Falkland Oil and Gas Limited has confirmed that the 'Humpback' exploration well was spudded on Saturday.

The well is located on licence PL012 in which FOGL has a 52.5% working interest and will target the Humpback prospect.

Humpback is located within a cluster of similar prospects, in the Fitzroy sub-basin, which have a total, combined, prospective resource of over one billion barrels of oil.

The well will test multiple stacked reservoirs within the Cretaceous Diomedea fan complex.

The Humpback well is located in a water depth of approximately 1,260 metres and is expected to reach a total depth of 5,350 metres. The well is anticipated to take approximately 65 days to drill.

FOGL says a further release will be issued once logging is completed.

FOGL is partially carried through the costs of this well by Noble Energy (licence pperator) and has a paying interest of 27.5%.

Chief executive Tim Bushell said: "The Humpback well is the exciting first test of a new geological play concept within the South and East Falkland basins. In the event of encouraging results, we have identified, on 3D seismic, multiple follow-up prospects."

Supply v Demand.

With all the reports and opinions I have read re the future price of oil, two words from a recent Daily Telegraph article stuck in my mind, 'Finite and Infinite'.

I think its a given that oil is finite in supply but demand is infinite (well almost) and will be for the next 10/15 years at least.

Yes, new technologies come along and I think we all except that compared to ten years ago oil now has far more competition, but whilst overall demand is increasing (don't look at month on month, but average year by year).

And we all know that Its the over supply resorting in stockpiling that is causing the current oil price, and whoever thinks that this situation can carry on when so many countries rely on an oil price around $100 plus is living in dream land.

These oil rich countries need to make their money now or at least within those 10 to 15 years, as when those new technologies become oils nemesis, the oil left in the ground will be of far less value than todays price and will finally become almost worthless.

Fogls discoveries are nicely timed to take advantage of the low oil price now re lower rig costs and the future oil price with the time to production, Fogl selling these field to producers of course.

So an RNS finally tells us that drilling has recommenced after a longer delay re equipment failure.
We deserved and had a right to know that drilling had not yet re started.

Treated like mushrooms, with Noble obviously pulling the strings!

StockMarketWire.com
Falkland Oil and Gas Limited says progress on the 53/02-01 Humpback exploration well has been slower than anticipated.

The company says the well has been drilled to 4,718 metres with oil and gas shows recorded whilst drilling through main target horizon. Intermediate wireline logs indicate the possible presence of hydrocarbon bearing sandstones within main target horizon.

The well is now being deepened to evaluate additional targets.

FOGL says progress on the well has been slower than anticipated because a side-track was required at 4,360 metres for mechanical reasons. The well has now been drilled to a depth of 4,718 metres.

A number of sandstone intervals in the Lower Cretaceous (APX-200) were encountered between 4,642 metres and 4,704 metres and oil and gas shows were recorded whilst drilling through this section. A set of intermediate wireline logs have been run and these indicate the possible presence, based only on preliminary petrophysical analysis, of hydrocarbon bearing sandstones, within the main APX-200 target horizon.

The APX-200 contains approximately 40 metres of net sand, with moderate porosities. Without fluid samples it has not yet been possible to definitively determine the formation fluid (oil, gas, water), nor accurately calibrate the petrophysical analysis. FOGL says its overall share of the Humpback well costs have increased as a result of the various delays.

FOGL has however, sufficient funds and contingency to complete the well. The well will now be deepened to evaluate additional targets below the APX-200 sandstone. FOGL will be carried through the cost of this deepening by Noble in return for assigning a 32.5 percent equity interest to Noble in these deeper targets (FOGL retaining a 20% working interest). Once the well has reached total depth a further set of wireline logs will be run. Subject to operational constraints, this will include a formation test tool which may be able to establish a pressure gradient within the sands and also recover a sample of formation fluid to surface for definitive analysis. A further announcement will be made once total depth has been reached and this is expected to be by the end of October 2015.

Todays RNS not good reading.

53/02-01 Humpback exploration well results
Falkland Oil and Gas Limited (AIM:FOGL), the exploration company focused on its extensive licence areas to the North, South and East of the Falkland Islands, announces the results from the 53/02-01 Humpback exploration well and also, notes the announcement from the Operator, Noble Energy made at 20:30 on 28 October 2015.

The Humpback well was drilled to a total depth of 5,136 meters (measured depth). The well encountered non-commercial quantities of oil and gas within a number of sandstone intervals, including the main APX-200 target. All of the pre-drill targets were penetrated close to prognosis in the well. An additional 25 meters of sandstone was encountered below the APX-200 bringing the total in the well to 65 meters. The deeper sandstones, exhibit only moderate porosity (10% to 15%) and low hydrocarbon saturations.

For a number of operational reasons, it was not possible to obtain fluid samples from any of the hydrocarbon bearing zones in the well.

FOGL will now evaluate these results in more detail and assess the impact on the prospectivity of the Diomedea fan complex and the rest of the southern licences. The results do however demonstrate a working hydrocarbon system and Humpback was only one of a number of geological plays within the Fitzroy sub-basin. Importantly the results will allow calibration of the 3D seismic data and this may facilitate the mapping of higher quality sands elsewhere within the large area covered by 3D seismic.

Once operations have been completed on Humpback, the Eirik Raude rig will return to the North Falklands Basin to drill a second well on the Elaine/Isobel fan complex. The Elaine/Isobel fan complex, based on the operator's estimates, has multiple reservoir targets and gross mean un-risked resources of 400 million barrels of oil. A further announcement will be made on the commencement of this well.


Tim Bushell, CEO of FOGL, commented:

"While the Humpback well has provided mixed results, it should be noted that this is the first well in the South Falklands Basin to encounter oil and also demonstrate a working hydrocarbon system in the Fitzroy sub-basin. The reservoir quality in the various targets penetrated by the well was however poorer than pre-drill expectations, and further work will now be required to fully integrate the well results and assess the implications for the overall oil and gas potential of our southern licences"

"We look forward to notifying shareholders upon commencement of drilling operations at the Elaine/Isobel well in the North Falkland's basin."

StockMarketWire.com
Rockhopper and Falkland Oil & Gas have agreed the terms of a recommended all-share merger. Falkland shareholders would receive, for every one share they own, about 0.2993 Rockhopper shares.

The merger values Falkland Oil & Gas at about OGBP57.1m, and each of its shares at 10.70p.

The combined Group is expected to:
o be the largest North Falkland Islands licence and discovered resource holder with a material working interest in all key licences;

o have enhanced prospects of progressing the Sea Lion project through final investment decision;

o have greater exposure to exploration and appraisal upside potential; and

o benefit from enhanced scale and capabilities creating value in the current market environment.

StockMarketWire.com
Trading in Falkland Oil & Gas's shares has been suspended on AIM at the company's request pending an announcement.