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I'm still holding some long futures here.

Back in from 61.75p soooooooooooooo please ramp away Pro

As to rates of progress - diagram below. Some say we are doing very well, perhaps a week ahead of schedule and drilling will be complete around 10th Nov.

If "Loligo" rate of progress is achieved then TD should be around 17th Nov.

Well operations of 75 days includes allocation for 7 to 10 days of wireline and formation testing, 14 days for P&A, 2 days for pack up and rig and moved out of drill zone area.



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Scotia well update



Drilling of the Scotia well had been proceeding to plan and was ahead of schedule by approximately three days. A routine test on the blow-out preventer (BOP) revealed an equipment malfunction. The BOP has now been brought to surface in order to replace the failed component. In the light of problems encountered by a previous operator, FOGL had commissioned an extensive and independent examination of the BOP prior to the commencement of drilling. The recent malfunction is related to a part that had been used without problems during the drilling of the Loligo well and had been successfully tested earlier on the Scotia well.



The rig will be on a zero day rate whilst the repairs are being undertaken, although other costs will continue to be incurred and we will provide an update of costs after the well has been completed. We expect the repair work to take approximately 2 weeks to complete and as a result, there is likely to be a commensurate delay in reaching the total depth of the Scotia well.

3D and well update.

3D surveys commissioned and looks like a 2 week delay to Scotia. So now looking perhaps 1st December instead of 17th Nov for TD.

Here is the news of the delay, license extensions and 3D contracts.

http://www.investegate.co.uk/Article.aspx?id=201210251000025183P

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They probably will save 3 million quid as a result of the zero rate charge as it is not their fault......but it looks like there is gas or oil down there for sure....as we have found gas before perhaps gas it is...but there is always a chance that crude in quantities could be discovered....the AVO shows liquids...so...condensate ?..oil...? hope it's not water...

No.... they still have to pay circa 400K US$ for all the other services, so this delay will cost in total about 4m to 5m US$ extra cost. Rig rate is only just over half the actual costs of drilling.

Yes there are bound to be expenses but the rig daily rate is astronomical so at least that bit is saved....it goes with the oil industry...delays are just part of the game.....

If you average it out they were 3 days ahead (saving 3m US$) and now will have to pay "other costs" whilst the rig is on zero rate for 12 to 14 days.

If they hit in excess of half a billion barrels.....what the hell ?....anyway...the company is nowhere near valued what it should be...so even if it's just gas...with the prospects and surveys coming up...there will be a rebound...

Most preferable to have OIL from Scotia without a doubt, otherwise you'd get the same response as at Loligo(if it was a gas find), and the s/p would only appreiciate once all test had been done and reported as to the size of find etc..

Exactly.....but worth a punt ...as long as you can stomach a drop and be patient enough to wait for a rebound which will come...

All we can be sure is that the cost of this delay to FOGL is "peanuts".

Noble are paying 60% of Scotia costs for their farm in, and Edison paying 25% - so FOGL only pay 15%.

Even if the overrun cost 7m US$, that would equate to just 1m US$ as FOGL 15% share.

Given the quickness in finishing Loligo this might mean FOGL's cash balance at finishing Scotia could be 119m US$ and not the 120m US$ I expected post Loligo drill finishing quick.

And so it all begins.......

Location for a new "deepwater" port is decided and so the reality of oil and gas development on the Falklands begins.

I remember some not very bright people saying way back that the "Falklands will never develop oil or gas as they have no deepwater port and need Argentinean ports.....".

The same people also said that "Commercial oil will never be found in the Falklands....."

The same people today say "Gas and condensate will never be commercial in the Falklands............."

Amazing how wrong these people can be, yet they still act as ignorant as before spouting their nonsense which ends up being wrong, again and again.......


http://www.penguin-news.com/index.php?option=com_flexicontent&view=items&id=453%3Aport-william-is-site-for-new-port



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Chart view :

http://www.tradingresearchpoint.co.uk/2012/10/26/trading-trigger-alert-falklands-oil-gas-fogl-above-55p-targets-75p/

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Falklands Oil & Gas’ (LON:FOGL) drilling has been delayed because of malfunctioning equipment related to a blow out preventer.

The company had been drilling the Scotia well – its second and final well of the programme – for about a month, and it said that it was slightly ahead of schedule prior to the delay.

“The recent malfunction is related to a part that had been used without problems during the drilling of the Loligo well and had been successfully tested earlier on the Scotia well,” the company said in a statement.

The repairs are expected to take two weeks. FOGL says the rig will be on a ‘zero day rate’ while this is taking place, however it will still incur others costs.

That info was posted 24 hours ago! C'mon, try and keep up!!! ;o)

25% to 26% is about right, after claiming back via tax breaks the exploration and other costs involved.

http://en.mercopress.com/2012/10/26/falklands-estimates-oil-earnings-at-25-of-gross-value-of-the-resource-extracted

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http://paper.li/Mulder1981/1332851831

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