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Hi Blackdown,

Just seen your post, "Production is years away and the extraction costs will be relatively high".

Oil exploration is and has always been a risky and both a time and money consuming industry, so your comment is an obvious one and to be honest pointless.

Not so. Some (on-shore) fields can be brought on stream fairly quickly and relatively cheaply.

Clearly not the case here and so any valuation of the hydrocarbons (when proved) will include a significant discount.

Cynic...it has not yet been classified yet as one but it will be as the rns implies....this is just the beginning and I'm very surprised that the sp is not much higher...

40p on the cards soon.,.

ah well (RF), you have long worn those rose-tinted specs so you will no doubt continue to be surprised for at least several months more

No abnormal pressure was stated RF, this to me implies that the gas find won't be major despite the size of play. More needs to be known before a firm decision is made. Like Cynic says the jury is still out on this one.

It could be huge and looks to be a monster of a gas find but we need more meat on the bones.

I wonder if that is why ARG is pushing up so much recently? Hopeful of a commercial gas find anywhere in the Falklands.

Pro -I have been asked can you update the header on the xel site, otherwise there is talk of opening a new one.

dc - let them go ahead and start a new one.

Broker note on FOGL.

http://oilbarrel.com/media/pub/var/release_downloadable_file/40280.pdf

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summary from the above by merchant securities ...... not exactly enthusiastic! ..... though their target remains just over double current, that is significantly than before ......

 Target Price: Our target price for FOGL is now 152p. This value consists of 14p for past drilling costs on Loligo, 101p for Scotia (risked by a 16.6% chance of success) and 37p for cash and balance sheet adjustments. Our target price PRIOR to the Loligo result was 338p. Prior to the Loiligo results announcement, we had ascribed 199p of value to Loligo (risked at a 21.1% chance of success). We are changing our recommendation to BUY from UNDER REVIEW. Prior to the Loligo results announcements we had a BUY recommendation

Hi Blackdown,

Sorry, should have clarified that I was referring to off shore.

Well there's a big chance of hitting something with Scotia.....to me the sp is far too low....90p or even 100p would be more in line with value...

RF - you are so full of hope and your glasses so coloured, i'm amazed your local church does not want you as a window

Target of 152p with 101p risked by a 16.6% chance of success!! Brain of Britain that statement as 152p less 101p = 51p plus 16.6% of 101p = 67.76p unrisked which is the current share price... So currently Merchant Securities think the stocks trading without any premium!!

cynic you'l be jumping on the next momentum ride..

As will I

good morning poodle-boy ..... i dare say i shall, but there's a big difference between doing that - and getting out again with or without a profit - than falling in love with an ugly duckling hoping it will turn into a swan

Come...come Cinners....I know you're a big fan of this share......we should all be enjoying the rise pre-spud soon....come and join the faithful.....oy ye....altogether now with the Scotia hymn....you have not yet received Prosels latest indoctrination.......you just have to sign up to that...unmissable...makes the moonies look like amateurs....

don't the moonies stick their bare arses out of windows?