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.
•
Most prospects in 2,000 – 4,500 feet water depth (610 – 1372m)

•
Target horizons: 6,000 – 13,000 feet below sea bed lever (1829 – 3962m)

•
Falklands weather is similar to West of Shetland

•
Remote location but there were no major issues during 1998 drilling campaign

•
Anchored semi-submersible or drillship for exploration drilling

•
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/

Falkland Oil and Gas Limited
22 October 2007


22 October 2007


Falkland Oil & Gas Limited

Additional Listing

Falkland Oil & Gas Limited ('FOGL' or 'the Company') announces that options over
375,000 ordinary shares of 0.002p each in the Company ('Ordinary Shares') have
been exercised.

Application has been made for 375,000 new Ordinary Shares to be admitted to AIM
and for trading to commence at 8.00 a.m. on 26 October 2007.

These new Ordinary Shares will, when allotted and issued fully paid, rank pari
passu in all respects with the existing Ordinary Shares now in issue. The total
number of FOGL Ordinary Shares in issue following the exercise of these options
will be 92,325,706.

FOGL 020 7563 1260
Tim Bushell, Chief Executive

DEEP WATER PORT:

Snippets from a meeting last night in the Falklands Town Hall.

Councilors said that to build a new port the cost would be between 20 and 30 Million Pounds. In 2004 a decision had been taken to put new facilities in the vicinity of FIPASS but this Council is not sure this is the way to go. 3.7 Million Pounds would upgrade FIPASS and make up for 20 years of poor maintenance. It can cope with the exploration Drilling round but if oil is found it is thought the oil companies would build their own port. Nonetheless the General Manager of FIDC is releasing the Royal Halkoning report later this week. END.

It may be another line to watch. If we see some evidence of senior oil company representatives sniffing round it will be an indication of the big boys planning ahead.
I understand that the airport is also looking to be extended, although this is being put down to increased tourism. But if the oil fields ever do come on line, no doubt oil production workers will become a large percentage of the islands population.
If you look at similar size land mass areas, the infrastructure is always planned well ahead. The clues could be what happens following on to the drilling results.
Oh to have a mole on the islands!

Perhaps your mole good sniff around for the gold that FGML failed to find - I'm sure it's there somewhere.

Well when oil was found, they first called it black gold, so you never know.

And what is happening today? Has there been some depressing news?

Pardon the pun but with a 7p drop it seems to be heading for the Far South this afternoon.

Avsec

Lots of stocks have seen a bit of a selloff this afternoon ahead of the FED interest rate announcement tomorrow. No cause for alarm, imo. (Unless of course the FED don't drop interest rates!)

Like Harry, not much to worry about here, I did think it was going to drop back to 120 ish ready for the next bit of news in 08 when the rig gets to the FI

The main worry according to some newspapers is that with winter coming in Europe and the cost of oil being what it is, people will cut back as the money/credit squeeze builds.
Shortage...What shortage.
All this talk of shortages being the main reason re price increases is all hot air (politics). There is plenty of oil out there that could easily be released onto the general market. The price is often kept at a falsely high level for a multiple of reasons.
Can anyone out there remember the last time there were queue's for petrol in Europe (again not counting the political situations that occur sometimes).
The only time you tend to see such queue's is in panic buying.
It's many years ago since petrol was so short that it was rationed, and then it was because of a political situation, not an actual shortage of oil.
We are being conned and with the chancellor taking a percentage cut per litre price they will not give a damn until the crux of public anger is reached.

see my post 227!

From Hydrocarbons daily yesterday.

Rockhopper Exploration: Interpretation of the 3-D seismic data collected over Rockhopper Exploration Plc's PL032 and PL033 licenses in the Falkland Islands has revealed large fans and structural closures that could form targets for the next round of exploration drilling.

Any good news re exploration in the area must benifit all similar companies in the area.

5% UP 2DAY, I think it may be due to the fact BHP may up there stake by the end of Nov that is if they do ??

BLT bought 40% of the licences, with an option to buy up to 65%. Although BLT & FOGL are separately quoted companies, there must surely come a time when movement in the BLT sp directly affects the FOGL sp? Also, should FOGL strike oil then there should be a proportionate increase for BLT? Or is that not how it works?

Of Interest :


BHP to keep oil, gas business despite Rio bid: analysts
Mon Nov 12, 2007 7:10 AM GMT
Email This Article | Print This Article | RSS [-] Text [+] By Fayen Wong

SYDNEY (Reuters) - BHP Billiton Ltd/Plc (BHP.AX: Quote, Profile , Research) (BLT.L: Quote, Profile , Research) was unlikely to offload its lucrative petroleum division to help fund a $140 billion takeover bid for rival Rio Tinto (RIO.AX: Quote, Profile , Research) (RIO.L: Quote, Profile , Research), analysts said.

BHP is poised to reap major returns from the business, with some of its biggest oil and gas projects due to come onstream in the next two years.

"Selling the assets right now, ahead of completing major developments, means they won't be able to realize the maximum value," said Warren Edney, a resource analyst at ABN AMRO.


Analysts said BHP's strong balance sheet meant it should easily be able to secure the financing needed for such a deal without having to sell the petroleum business to raise funds.

British newspapers reported over the weekend that BHP may look to sell its oil and gas arm for $40 billion to help fund a bid for Rio, which is not in the oil business.

A BHP spokeswoman declined to comment on the report.

BHP has so far proposed an all-scrip bid to Rio, which has rejected the offer, and fund managers have suggested it may need to sweeten the offer with a cash component. Continued...

© Reuters 2007. All Rights Reserved. | Learn more about Reuters

Oil Price Racket.

Just a couple of days ago all the news was....Oil flow not keeping up with demand. Inventories will start to run short. World shortage fear.

Now todays news is....Higher US inventories and an OPEC report that the forecast demand is lower than expected have helped to decrease the price of Crude today.
Crude prices remain artificially high with the cost being passed down to consumers from everything from vegetables to spare parts.

Funny how easy it is to state shortages, and push prices.
The world is a slave to oil and will continue to be so for many years yet.

As I have previously stated when governments scream shortages.
When did you last have difficulty buying as much fuel as you require.
If there were real shortages, there would be queues, rationing or both. That has always been the way of things.

Bl..dy politics.

Greekman (Mr Angry)

Lets hope this does not effect the take up option between Fogl and BHP, as even for a company the size of BHP this is a big knock.

Sources close to BHP have revealed that internal estimates for the development of Olympic Dam, a massive copper and uranium resource in South Australia, have increased to as much as $20bn. If these estimates prove accurate, it could delay the Olympic Dam expansion by years, creating a shortfall in BHPs future earnings, reports the Times.

Option take up not as much as it could be.

BHP Billiton has decided to exercise its option from 40% to 51%. As Billiton had an option of up to 65% I feel this will keep the sp stable.
Not disappointed though.

Full RNS :

Falkland Oil and Gas Limited
28 November 2007

Falkland Oil and Gas Limited



FOGL Partner increases interest in exploration agreement



Falkland Oil and Gas Limited ('FOGL') is pleased to announce that BHP Billiton
has decided to exercise its option to increase its interests in FOGL's 2002 and
2004 licences to the South and East of the Falkland Islands.



Highlights:



BHP Billiton will increase its interest to 51% from the 40% announced
on 2 October 2007

FOGL retains a very substantial stake in the licences

BHP Billiton will pay FOGL an additional US$2.75 million in
reimbursement of historical costs

The decision by BHP Billiton to increase its interests in our licences
further confirms our view of the significant petroleum potential of the
South and East Falkland Basins.



Details of the agreement

Under the terms of the farm-out agreement announced on 2 October 2007 BHP
Billiton had the option to further increase its interest in the licences. BHP
Billiton has decided to exercise this option by increasing its interest to 51%.
Consequently, BHP Billiton will pay four thirds of 51% (approximately 68%) of
the costs of the near term work programme, including the drilling of two
exploration wells and all other associated work to the completion of this
drilling work. In addition, BHP Billiton will pay FOGL a further US$2.75
million in relation to certain costs already incurred by the company. At end
2007 FOGL's forecast cash position is 12.2 million (US$25 million). As such,
FOGL is now funded through a significant proportion of the near term exploration
programme, which will include the drilling of the first two exploration wells.

Since announcing the agreement with BHP Billiton, FOGL has had discussions with
a number of other parties potentially interested in farming in to the area.
FOGL will now look to advance these discussions, but with the clear intent of
retaining a material interest in its licences.




Tim Bushell, Chief Executive of FOGL commented:

BHP Billiton's decision to increase its interests in our licences further
confirms our view that the South and East Falkland basins are highly prospective
and have the potential for the discovery of significant volumes of oil and gas.



28 November 2007



Note to investors:

FOGL is planning to make an announcement on its 2007 exploration results and
operational plans shortly.

Excellent news!

http://www.falklandnews.com/public/story.cfm?get=4775&source=3

really cannot get enthusiastic at current price ..... not only is sp quite well below both 25 and 50 dma, but those are also too close together to make one believe they will not form fairly stern resistance - perhaps "could not" would be a better phrase