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I think both are as risky as each other, lets face it both companies have limited finance to drill with before being required to raise funds!

Shortie, with both of them owning 100% of potentially BILLIONS of recoverable barrels, they can easily farm out.

This is the advantage of having BILLIONS of barrels potential and low share prices - farming out adds value as the value is not in the price.

Unlike other companies who have high share prices and smaller finds, when they farm out they can lose value as they are giving away something thats in the price.

It's just rf getting pre-RNS nerves as usual! We can usually tell when TD is getting close as his posts get dizzier & dizzier!!! ;o) [can you still say 'golly' these days?]

By golly miss molly !....(great song...a classic)....if you start banning that...nuts....getting very nervous....could be fantastic or not....

It is understood that the Argentinians have managed to get hold of a second hand drilling rig ready for when they get possession of the FI fields,

Note. I would have just posted the picture, but don't know how

http://www.wired.com/science/discoveries/news/2008/05/dayintech_0526

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Greece deal done, should be a strong blue day ahead, hopefully lots of buying of BOR and FOGL ahead.

Mirabaud comment on BOR :

.........Seven years after being awarded the acreage, Borders & Southern is on the cusp of finding out if the wait has been worthwhile. The Darwin exploration well spudded on 1 February and is targeting a potential 760 million barrels of oil – the likely 45 days of operations would see the drill bit reach the reservoir in early March, with an announcement expected by the middle of the month. As expected, Borders’ share price has ticked up over the past weeks and months in anticipation and, although mindful of the somewhat binary nature of pure exploration plays, we like the acreage and the management, and are confident that Borders has the technical understanding to unlock the potential of the basin. With the Darwin prospect alone worth £11/shr, we rate this stock as a BUY, with a price target of 150p............

Very low volume, not even a million shares traded today so far.

Just read a letter in the Telegraph from an English couple who have been spending few weeks in Argentina.
Although very wary before and on arrival regarding how they would be treated, they were very surprised when the local people on discovering that they were English, treated them in a very friendly way.
It appears that several locals explained that the average Argentinian, had no problem with the Falklands wanting to stay British, and their main grievance was with the Argentinian government and the high inflation rate.

I have no reason to doubt that this is how the Argentinian people feel, although of course there will always be a minority (those that get on TV and in the headlines) who want the Falklands to be taken over by their country.

The reason why I don't doubt this is because I saw the same reactions in Ireland in the late 1970's when the troubles were still near to peak levels.
From 1975 to 1979 I spent several month in Ireland, just south of the border.
When the locals discovered we were English, they went out of their way to treat us friendly.
In fact sometimes it became a bit embarrassing, with us being treated to several pints in a local pub with many apologising for the actions of some of their countrymen.
I must add that they were always very careful who was about when they talked or/and were near to us, as the trust between themselves was always down to how well they knew each other.
I appreciate that many on here do not wish to see any post that mentions Argentina and the Falklands, but this small story in the Telegraph coupled with my own experiences in Ireland, probably says more than many of the more negative headlines put together.

There we go, as expected (by me) there were rig problems for BOR. I was wrong in that I thought 2 to 3 more weeks but the update today says 4 to 5 more weeks. Never mind, but it removes all the uncertainty and its onwards down to the Darwin target zone now - a target which has very good DHI's including the "holy grail" flat spot anomaly.

I remain that Darwin has a very high chance of success for a wildcat.

Now, one more thing, do not be shocked if FOGL drill next at Loligo, with BOR moving Stebbing backwards to be after Loligo.

For those wanting to buy in before Loligo you better be aware there is a chance, and its only a chance, that FOGL will drill next at Loligo...........

Nice, CFK must be p'd off.

http://www.buenosairesherald.com/article/95783/malvinas-peru-throws-london-a-line

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People should be able to express their views regardless of going long or short.....the idea is to make a few bucks.....I enjoy reading other views than my own...no need to get shirty...

qui?

I like pro, i could POTENTIONALLY be a billionair........who knows.,.

Big vote of confidence in the South Falklands..........

http://www.investegate.co.uk/article.aspx?id=201203200700246704Z


Excellent news.

There is still one option available, this deal will also mean that FOGL easily has funds for 3 drills this time around, therefore potentially allowing them to drill Loligo and Scotia and then one appraisal on either should they strike oil/gas.

20 March 2012

Falkland Oil and Gas Limited

Farmout Option Agreement and rig update

FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, is pleased to announce the execution of an option to enter into a farmout agreement which, if exercised, would provide FOGL with greater financial flexibility in respect of its current and forward programmes.

For corporate reasons unconnected with the proposed farmout, the counterparty is unable to execute the FOA/JOA at this time, but expects to be able to do so within the next two months and prior to the commencement of FOGL's drilling programme.

Summary terms of the FOA

• The counterparty would farm-in to 25% of the FOGL licence areas and would contribute its pro-rata share of the 2012 drilling programme, comprising two exploration wells

• The counterparty would also pay its pro-rata share of certain historical costs incurred during 2011 related to preparation for drilling this year. The costs incurred are estimated to be $68 million gross

• In addition the counterparty would make a cash contribution of $40 million; $20 million on completion (expected to be prior to the spudding of the Loligo well) and $20 million in 2013.

• FOGL will retain licence operatorship

Rig update

The Board of FOGL notes the announcement on 16 March 2012 by Borders & Southern Petroleum plc (B&S) that rig issues which had previously stalled progress on drilling the Darwin prospect had now been addressed and that the company expects another four to five weeks of activity on that well. As a consequence, FOGL now expects to receive the rig around early June following completion of the drilling of B&S's Darwin and Stebbing. This delay has no impact on the contractual arrangement that FOGL has with Ocean Rig to drill two exploration wells, following the completion of the B&S drilling programme.

The Leiv Eiriksson rig could deliver ten times the payload of Sea Lion

The Sea Lion field success by Rockhopper could transform the fortunes of the Falkland Islands. The government, for example, should expect to see $3.9bn in royalties and $6.6bn in tax revenues over the life of the field. To put this in contex,t the government only received $39m in tax and other income in 2009/2010. From another perspective, the population of the Falklands is about 3,000. Divide that number into the $10.5bn income from Sea Lion and it gives each islander a potential bounty of over £2m.

That is a handy sum. But it pales into insignificance compared with what could happen for investors if others strike oil in the Falklands.

So far, recent drilling in the Falklands has been confined to the shallow water Northern Basin. With Rockhopper now focussing on bringing Sea Lion into production, further exploratory drilling in the Northern Basin is unlikely until 2015, so the focus is now on the Southern Basin.

On 31 January BORDERS & SOUTHERN (BOR) spudded its first well in the ocean to the south of the Falkland Islands. It said that this operation would take about 45 days. That means we should now be less than a fortnight from discovering whether it strikes oil. With 2 April marking the 30th anniversary of the start of the Falklands war, and the price of oil edging up towards fresh highs, a storm is brewing and success for Borders & Southern could turn this into a hurricane.

After completing the first well for Borders & Southern the Leiv Eiriksson rig is set to drill three more – one more for Borders and two for Falkland Oil & Gas (FOGL). The biggest of these is the latter’s Loligo prospect which, with an estimated resource of 4.7 billion barrels, is ten times the size of Sea Lion.

It is the second largest exploration prospect to be drilled anywhere in recent years, with its resource potential exceeded only by the 7.9bn barrel Libra discovery off Brazil. In all, the four prospects targeted by the Leiv Eiriksson have estimated potential resources of almost 8 billion barrels, three times current UK oil reserves.

The Argentines pose a risk

Despite the fact that the government of the Falklands takes a lower cut than any government except French Guiana, that would still be enough to virtually submerge the islands beneath a stream of tax revenues and royalties. Edison estimates that success for these four prospects could generate tax and royalties of $177bn, which is about £37.5m per islander.

It may not end there. If the region is as oil-rich as some have estimated there could be 60 billion barrels. Revenues from all that would be worth c.£280m per islander!

Short of laying on direct flights to Las Vegas, it is impossible to see how the islanders could ever get through this kind of money. The Falklands government, with help from the UK, is going to have to come up with a strategy or else Argentina, which last week prevented two cruise ships from docking at its Ushuaia port, apparently because they had previously visited the Falklands, is certain to turn up the pressure.

Could we see another 500% share price gain?

But corporate investors in the oil sector are used to political risk – although BHP Billiton is thought to have pulled out of its joint venture with Falkland Oil & Gas for fear of offending South America, Rockhopper is confident of striking a farm-out deal for the development of Sea Lion, with the UK’s Premier and Cairn and the USA’s Anadarko and Noble Energy rumoured to be in the frame.

Assuming that it can bring Sea Lion into production within its 2016 targeted time frame, Edison argues that its shares can double from here. But the biggest near term potential undoubtedly lies with the Southern Basin licence holders Borders & Southern and Falkland Oil & Gas.

In the month after the Sea Lion discovery, Rockhopper's share price gained 644%, as the market not only took on board the significance of this find but also started to price in the possibility of more.

“This” says Edison, “is not uncommon and forms the basis for what we can expect the other Falklands explorers to do if they have equally encouraging discoveries… it is therefore not unreasonable to assume that share price gains running in excess of 500% could be possible with both companies. The large size of the prospects… are of a magnitude that is difficult for investors to comprehend…”.

The oil gamble of the decade is upon us – if you want to place your bets, you had better hurry. The moment of truth is nearly here.

Falkland Oil and Gas (BUY, 250p) (FOGL LN, 65.5p, ▲ 8.0 %) Unknown Party Farms-in. The Company has granted an as yet undisclosed party the right to Farm in to its acreage, which is expected to be exercised within the next 2 months. FOGL will retain licence operatorship; the counterparty would farm-in to 25% of the FOGL licence areas and would contribute its pro-rata share of the 2012 drilling programme, comprising two exploration wells; the counterparty would also pay its pro-rata share of certain historical costs incurred during 2011 related to preparation for drilling this year. The costs incurred are estimated to be $68mm gross. In addition the counterparty would make a cash contribution of $40mm; $20mm on completion (expected to be prior to the spudding of the Loligo well) and $20mm in 2013. This is good news for FOGL as it not only dilutes the Company's risk exposure, but adds value to the Company. The favourable terms of the proposed deal should provide FOGL with greater financial flexibility as it presses ahead with its drilling programmes later

http://www.oilvoice.com/n/FoxDavies_Daily_Monitor_3Legs_resources_Sterling_Energy_and_Chariot_Oil_Gas/1577ef0e4936.aspx