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scotia report out ..... cut through all the flannel, and you get left with "crap result"

FLASH: FOGL to plug and abandon Scotia well

27 November 2012 | 07:30am

StockMarketWire.com -

What happened to Miss P's billions of barrels of oil, or trillions of cu ft of gas.

why do you think he's buggered off? ..... very spitefully, i rather hope he's done his bollocks .... fortunately i was not gulled and though i have a position in fogl, if shares go to zero, it'ld be painful but not horrid

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Still in auction at 0805.

Another failure in the Falklands. This is a bad area to invest your money.

the brave may want to consider buying at +/-37 on the basis that there will already have been many forced closures and the company is probably worth more than zero - but it's a very high risk strategy

It will fall to the 20-30p range.

put the gun down rf, it's only money.,.

fwiw, the order book is surprisingly/very strong at the current level with a lot of MMs showing orders at 35

I can't see any investment case here. What's the point of buying an oil exploration company which won't be exploring till at least 2015. Buying its cash value doesn't make sense when you can keep your own cash.

I expected it nearly.....the good point is that the sp will rebound soon as it is cash rich.....

It happens.

In the short term its getting the results from Loligo and hoping that they're mega commercial!!...

Hope it does for you gb.

sorry to any caught here but this is excellent for me - watching for the best time to fill me boots later - good buy this sp and lower whatever :-)))
gla

UPDATE: Falkland Oil and Gas shares slump as Scotia well disappoints
12:29 pm by Jamie AshcroftCity broker Oriel Securities says it is still a buyer of FOGL in the wake of today’s result.


Falkland Oil and Gas (LON:FOGL) has almost halved in value today after it revealed the Scotia well would not yield a commercial discovery.

The well was drilled to a depth of 5,555 metres and it hit mid-Cretaceous aged reservoirs as expected. Strong gas shows were encountered during drilling, and 50 metres of hydrocarbon bearing intervals were identified.

However, the reservoir was found to be ‘fairly poor quality’.

The well did not flow hydrocarbons in a subsequent test and this, FOGL says, indicates that the reservoir has low permeability.

Scotia is the final well in FOGL’s highly anticipated two well drill programme. It follows the Loligo well which also disappointed, because it could not be properly assessed.

FOGL will now plug and abandon the Scotia well. The company says it will have around US$220mln in cash after the drill programme is complete.

This afternoon FOGL shares were down 30.5p, or 48.4%, trading at 32.5p each.

City broker Oriel Securities says it is still a buyer of FOGL in the wake of today’s result.

According to analyst Arpit Harbhajanka, as a result of the recent farm-outs, FOGL’s investment case is about a longer term exploration story.

In a note today Harbhajanka highlights the positives, and points to the additional insight FOGL has gleaned from its two well programme.

“The drilling results are encouraging because they prove a working hydrocarbon system in a new play type, the mid Cretaceous Fan play, and also demonstrate that Scotia is a viable trap,” he said.

“The Scotia well provided an opportunity to obtain cuttings and core samples from potential source rocks. Analysis of these rock samples should provide valuable information on the oil and gas distribution in the basin.

“This analysis will, in our view, help the company identify potential oil bearing prospects for the next drilling campaign.”

Other brokers however reflected the disappointment that first of all the system was gas, and secondly that it was not viable in this location.

Like Harbhajanka they also point to some of the positives.

Indeed, Mike van Dulken head of research at CFD specialist broker Accendo said there could still offer potential for the longer term.

“With shares at such depressed levels, we may see some bullish bargain-hunters sniffing around at what they consider an attractive entry level for a story which could still have legs for recovery potential on any good news,” he said.

Meanwhile, in a note Merchant Securities analyst Brendan Long said: “The immediate result is a disappointment as the well did not confirm the presence of oil or high quality reservoir.

“The stratigraphic trapping system was effective and a working petroleum system has been confirmed, albeit a gassy one.”

good stuff dc - points to more of a drop given the city chatter also - may wait for 25p or lower instead cheers

Just for you gibby -

“With shares at such depressed levels, we may see some bullish bargain-hunters sniffing around at what they consider an attractive entry level