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

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Anchored semi-submersible or drillship for exploration drilling

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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/

LONDON (Thomson Financial) - A positive exploration update led shares in
Rockhopper Exploration higher, up 4-1/2 to 51-1/2, as the group said initial
work at its lead PL023 and PL024 prospects suggests 2.5 bln barrels of
recoverable oil reserves.
The North Falkland Islands explorer said the net present value of a single
100 mln barrel recoverable oil field would be between 750 mln usd and 1 bln.
It added that it expects to receive the final processed volume data at the
end of July.

Falklands doing ok !

of interest http://www.bgs.ac.uk/falklands-oil/download/download_files/Exploringforfansands.pdf

glad to see some PI are still buying !top slice ok, but why sell when things are looking good ? re cap ..................................

FOGL completes 2D survey

South Atlantic explorer Falkland Oil and Gas Limited has completed the acquisition of 9,950 km of 2D seismic data which has initially shown good quality and the company is now closer to firming up drilling prospects.

Falklands nears farm-in deal

Tuesday, July 24, 2007


Falklands Oil and Gas could be close to a new farm-in deal covering some of its properties in the South Atlantic.

Noting recent movement in share prices, Global Petroleum Limited, which owns 14% of Falkland, alerted investor to the possible deal in a statement today.

Falklands share price today was up by 6.25p to 1.29p a rise of 5.28% today.

Falkland itself, which is listed in London, confirmed market rumours, but did not give much detail about the potential deal.

The company only stated today: FOGL notes the price movement in the companys share price and confirms that it is in advanced discussions which may or may not lead to a major resources company farming in to certain of its assets.

However it cautioned that there was no certainty over the conclusion of any deal, and stated any agreement needs approval by local authorities: Any such transaction, if agreed between the two parties, would be subject, inter alia, to the approval of the Falkland Islands Government, the company stated.

Falkland Oil and Gas holds substantial acreage around the south and east of the South Atlantic Islands extending up to 2,000 m (6,560 ft) water depth and it has been actively seeking farm-in partners prior to the start of a potential exploration campaign once a rig is secured, possibly next year.

More than 20 exploration leads have been identified by the company on its licences, which it says have the potential to contain over 40 Bn bbl of oil.

The company has already conducted a 10,000 km 2D seismic survey in the South Atlantic, with 9,950-line km of data acquired which completed on 31 May this year.

Data from that survey is now being processed by Fugro in the UK. This has since been followed up by a controlled source electro-magnetic survey carried out by Offshore Hydrocarbon Mapping, which commenced in February this year.

Falklands has also initiated studies around rig-sharing options with other Falklands licence holders, while an analysis of floating production technology has concluded that an FPSO and subsea infrastructure would be the optimal solution, with tanker offloading, for any oil development.


ALSO ............. JUST IN CASE YOUR THINKING.......

Argentina ends Falklands oil deal

Wednesday, 28 March 2007, 03:14 GMT 04:14 UK

Argentina has scrapped a deal with the UK to share any oil found off the Falkland Islands - days ahead of the anniversary of the war for the islands.

Issue No. 195 Online Edition Thursday 26 July 2007

Falklands Oil in deal talks
Companies: FOGL
23/07/2007

Resource prospector Falklands Oil & Gas (FOGL) is in 'advanced discussions' about bringing a 'major resources company' into its projects.

AIM-quoted FOGL, where RAB Capital has a hefty stake, has been prompted by a 52 per cent share price surge to disclose to today's well-regulated market that it is in talks which 'may or may not' lead to one of the big sector players farming in to 'certain of its assets'. Tim Bushell, chief executive, recently reported encouraging seismic survey results from the company's prospects in the South and East Falkland Basins and these seem to have kindled interest in potentially useful quarters.

Shares in FOGL, commended as a possibly advantageous 'gamble' by Growth Company Investor at 99p two years ago and at 113.5p last year, have jumped 42.5p today to 123p, valuing the company at nearly 113 million. That is more than the 99.5p and 113.5p at which Growth Company Investor highlighted their speculative possibilities in 2005 and 2006 respectively, but below their 178p peak in February last year.

Meanwhile, Falkand Island Holdings, with 16.3 per cent of FOGL, has gained 80p to 385p, still around 1 off last year's high. Global Petroleum, with a 14 per cent FOGL stake, is 1.75p up at 9.25p.

FOGL and its backers have distinct speculative appeal as long as the current talks hook a big fish.

Speculation from advfn, " distinct possibility that the farm in for FOGL is an American company", hmm !

What do you make of that smiler.

could be ,( Baker Hughes, ExxonMobil, CanoccoPhillips )if they get FOGL (who ever it is )they may also be interested in RKH ?

the last news letter

http://www.bgs.ac.uk/falklands-oil/download/download_files/news.pdf

Last Updated: 27/07/2007 08:48
Oil prices rise above $75

Oil rose today to hold firm above $75 a barrel as traders bet that fears of tight summer supplies would offset a fresh wave of risk aversion that struck US equities.

An interesting Article :


The Truth on Peak Oil:


Why Oil's Prognosis Is Terminal... And Why Our Only Alternative Is Several Alternatives


"It's no secret anymore that for every nine barrels of oil we consume, we are only discovering one."
-The BP Statistical Review of World Energy

The world is addicted to oil. In just 8 years, it's projected the world will be consuming nearly 50,000 gallons of oil every second.

By that time, the world won't be able to meet the projected demand... for one simple reason: We're using up oil at breakneck speed.

And for those who look to Canada's oil sands as an answer to the Peak Oil crisis, consider this:

Once you get to the point where you burn more oil to run the pumps than a well is producing, you cut your losses and move on. That's why we're leaving so much oil in the ground. Hence the name "peak oil" or "easy oil."

The world economy and the strength of the dollar, you see, are directly related to oil supplies and cost.

Peak Oil is happening on a global scale... and while most of the world stand by with blinders on, savvy investors are catching on to the real news and on oil.


Energy and Capital reports

Oil prices closing in on all-time high


Associated Press
July 28, 2007


NEW YORK - The price of oil closed higher than $77 a barrel Friday, near an all-time high, on technical buying and news of faster-than-expected economic growth. At the pump, meanwhile, gas prices fell to their lowest level since late May.

Light, sweet crude for September delivery rose $2.07, to settle at $77.02 a barrel, on the New York Mercantile Exchange. The highest-ever settlement price for a front-month contract was $77.03 a barrel, set July 14, 2006. Reflecting how volatile trading in oil futures has been, oil ended the week up only $1.45 a barrel, or 1.9 percent, despite rising more than $2 a barrel on two separate days.

http://www.chicagotribune.com/business/chi-sat_oil_0728jul28,0,6018962.story

Oil companies finding reserves hard to come byStory link:

Oil companies finding reserves hard to come by by Kay Murchie

According to Provident Energy Trust, based in Canada, high crude oil prices mean there are many reasons to keep finding oil and gas for their company to produce.


http://www.oilmarketer.co.uk/2007/07/26/oil-companies-finding-reserves-hard-to-come-by/

bloody hell .... sp has got a bit excited hasn't it, though i confess that at first glance "in advanced discussions for a possible farm-in deal with a 'major resources' company, justifying the recent price movement in its shares", would not appear to justify a near doubling of sp ....... let's look a little further

reasonable number of monthly trades; NMS = 5000 which is not too bad for a reasonable sized minnow (100k cap); average daily volume = 71k; friday's volume = 150k; spread just <5% which is acceptable for a minnow, but could prob deal inside anyway in normal market

charts since start of trading on AIM and 6 month below .......



great break-out pattern with impetus and even a golden cross, if you hold, then fine, BUT with the markets in a horribly nervous state, there is no need to rush in and buy tomorrow, though there looks to be quite good support at the current level (about 112) and upside to???? .... well, my guess is to around 120 where it needs to break through that recent high and a bit of historic resistance

I got in at 77p , If Good Positive News in the next few months I was guessing we could see 2 ? also what do you think ref " possibility that the farm in for FOGL is an American company", ??

you didn't let me finish!! ...... go back to previous page and re-read

Thanks Cynic, I have a good feeling on this one ! Its hard speculating on who the farm in is ? I was trying to look at American companys who would be interested ?

confess i don't exactly understand the implications of a farm-in .... i asssume it's something like a JV with both parties retaining their full independence .... if that is so, why the huge impact on FOGL's sp? .... it doesn't sound as asset enhancing as say DOO's JV with BP

golden crosses are one of the biggest misleading set ups you can have..

Moving averages are exactly what they say they are, in that they are an average value of price movement.. thus they are lagging indicators and tell you what price has already done..

great if you can trade back in time.. :)

what you really need to read is price action itself, as this has no "lag".. a simple cross of a moving average by the price level is better than any "golden cross" as long as you can also indentify momentum building or a volume increase with the rise..

Coming from a chartist and daytrading background I could ramble on forever, but Ill give you my favoured example here..

One of the best and most consistant stock set ups for longer term time frames Ive come across is this one below which bodes well for this stock...

Stick a 14 period ADX on a weekly chart losing the black ADX line.. and then a 14 period donchian channel..
Basically watch for ADX DMI crosses.. but only take the trades which the price confirms by breaking the upper or lower donchian bands in direction of the cross.. basically the ADX can lag slightly, but the Donchian Channels are just a line of 14 day highest high or lowest low.. so in other words 14 day support or resistance.. so it hels lose the lag by indicating strength above or below the support/ resistance..

If the price actions confirms the DMI cross by breaking above or below the 14 day high/low then it can be a great set up for weeks or months to come.. (remember stop losses apply, the price of these damn things can go down aswell as up blah blah blah)..