.

IF could mean a film

Starting to move upwards....

The South Falklands now starting to stretch their legs a little, getting ready for the potential big big gains.

Sold at £1.34 in Nov 2009, bought back in yesterday at .66p. The signs are good for a modest short term profit.

i have taken the precaution of selling 50% for a very acceptable profit ..... logic is that if BOR get whacked, as i think they will for a variety of reasons, then FOGL will catch the backwash

cynic tasty profit who can tell which way this can go i bought into the argentine suppy co but may dip here also now Wills and the SAS forward and protection and other backup as i mentioend on other boards ha arrived

we will see think in soon

As long as they dont go the way of that other lot FGML who surfaced with loads of pomp but spluttered out as there was more gold in my fillings!!!!

Will be interesting to see if FOGL farm out before Loligo spuds. There is an option on the present drill contract for a single further option well (making it 5 wells in total).

BOR have funds for 2 and are committed to 2, FOGL have funds for 2 and are committed to 2, and there is one open option.

If FOGL did farm out before Loligo spuds, then we could see FOGL drilling 3 wells this round.

The original contract was for 2 firm plus 3 options. FOGL took two of the options and 1 option is left over.



Fri May 6, 2011 9:25am EDT
ATHENS, GREECE, May 06 (MARKET WIRE) --
DryShips Inc. (NASDAQ: DRYS) (the "Company" or "DryShips"), a global
provider of marine transportation services for drybulk and petroleum
cargoes and off-shore contract drilling oil services, announced the
signing, by its majority-owned subsidiary Ocean Rig UDW Inc. ("Ocean
Rig"), of a new drilling contract for its 5th generation drilling rig
"Leiv Eiriksson" with Borders & Southern Petroleum plc for performance of
exploration drilling offshore the Falkland Islands. This contract
replaces the previous contract with Borders & Southern plc for the "Eirik
Raude." The "Leiv Eiriksson" will perform the scheduled drilling program
in direct continuation after completion of the drilling campaign for
Cairn Energy offshore Greenland. The contract is for a two well contract
for a period of about 90 days, including three further optional wells.
The contract value is approximately USD 80 million..........

.

A farm out deal could really add value to FOGL.

The market is basically giving tiny value to the prospects, so the chance of farming a little out, but getting a 3rd drill fully paid for by the farm in partner during this round of drilling would really add value.

It could be 1 explo and then 2 appraisal wells on Loligo in the event of a find.

Or it could be Loligo then Scotia and then 1 of any type of play that BOR might find oil in - giving FOGL 3 shots on 3 different play types.

Just made my first purchase of FOGL @68

Blue = RKH , Green = FOGL , Red = DES , Light Blue = BOR

What colours and which stocks ?

http://www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/9098633/Cristina-Kirchner-told-to-leave-Falkland-Islanders-alone-by-Argentinas-intellectuals.html

.

I note that RAB (Does that stand for robbers and bandits??) have a 22% holding. Mind you they have a 23% holding in OXUS Which is a mind numbing failure at the moment.

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

.

http://www.telegraph.co.uk/finance/comment/liamhalligan/9105796/Soaring-oil-prices-will-dwarf-the-Greek-drama.html


Monday 27 February 2012


........................While the escalation of any kind of tension in the Middle East is obviously a serious matter, I don't accept that is why crude prices are high. The real reason –perhaps less interesting, but no less important for that – is simple demand and supply. Global crude use is soaring, while the most important oil wells on earth are rapidly depleting.

In 2001, the world consumed 76.6m barrels of oil a day. Last year, just a decade on, global oil use was a hefty 89.1m barrels daily, 16pc higher. In 2011, the world economy was sluggish, with global GDP growth of 3.8pc, down from 5.2pc the year before. Yet world oil use still rose almost 1pc in 2011, with crude averaging $111 a barrel, more than 40pc up on 2010.

The International Energy Agency (IEA), the energy think-tank funded by oil-importing Western governments, tells us that crude demand is "declining remorselessly throughout the OECD [countries]". Given that the Western economies remain weak and the eurozone is heading for recession, the "advanced economies" are consuming less crude.

The fine print shows, though, that even IEA demand projections, which tend to be under-estimates, show OECD oil use falling just 0.9pc in 2012. Demand among the non-OECD countries, meanwhile, including the emerging giants of the East, is forecast to rise 2.8pc. Total global crude consumption, then, is still set to increase by another 1pc this year, mimicking the trend of 2011.

The "demand destruction" thesis is useful for Western governments desperate for cheaper oil – and it used to be true.

Not so long ago, OECD oil use was so important that a Western demand slow-down was enough to lower global crude prices, so helping us recover. But rampant non-OECD demand now accounts for half the world total – and rising. Chinese oil consumption has recently surged at an astonishing 7pc-8pc per annum and the People's Republic is now second only to the US in terms of overall oil use. Misguided Western attempts to print our way out of trouble using QE are also boosting crude demand and pushing up prices, as savvy investors seek an "anti-debasement" hedge.

On the supply side, while attention focuses on geopolitical flare-ups, the important trends relate to geology and finance. Since the 1960s, the discovery rate and size of new oil and gas fields has fallen markedly. More than four-fifths of the world's major fields are beyond peak production. The output of the world's largest 580 oil fields is declining at a 5.1pc annual average. Strategic oil traders now worry aloud about falling pressure at Saudi's Ghawar, Cantarell in Mexico and other giants fields. The credit-crunch, meanwhile, severely cut investment in exploration and well development, which is likely to have long term supply implications.

While there's lots of hype about tar sands and shale fuels, these new technologies often expend more energy than they create, while causing horrendous environmental and water-supply problems. Conventionally-produced crude will remain absolutely critical, and demand for it will spiral, until mankind bans the internal combustion engine, outlaws ammonium-based fertilisers, dismantles the global pharmaceutical industry and learns to live without plastic. I can't see that happening anytime soon.

Geo-political issues are important, of course. A major Gulf conflict would obviously see oil prices spike. But crude is now expensive not due to political argy-bargy but because of the fundamental truths of demand and supply. Meanwhile, Western share prices keep rising...................

Hi Proselenes,

This was an excellent article, showing that on average the only price for oil is UP.

Well, its day 30 now of the drill, out of a 45 day program which includes testing and P&A.

If rumours are to be believed they lost a week whilst a component was replaced on the BOP, which puts it at day 23 actual.

You would expect perhaps 9 days of the 45 to be for testing, sampling and P&A, so day 36 would be your TD date.

So, if they did lose a week we are 13 days from potential news.

If they did not lose a week we are 6 days from potential news.

Got to watch BOR volume from next week, from 5th of March, any leaks of good or bad news should see rampant buying or rampant selling either next week or the week after.

3 million volume or over on a single day will be worth looking into.............

Going to be fun now.

Needs a good solid break through 70p - then its blue sky.

Buying is strong on BOR and FOGL, not looking like PI's, they seem to be the sells.

Possibly now, as its getting in target range of BOR result, a few II's opening up long CFD positions - which should lead to gradual teasing up of BOR and FOGL now, fingers crossed.