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the article was actually entirely to do with the political threat from argentina, real or imagined ..... the insert listed the various FI oilies with a brief resume on each with market cap and prospects

Have a read of MRQ magazine...big article on the Falklands.

shall do ... i have it on my desk at the office ..... btw, i think the argentian so-called threat is little more than political shop-front window-dressing for the benefit of the argie voters ..... no way will argentina take up arms, but all this posturing has to be taken seriously and answered, dull and time-wasting as it is

Looks like they are getting ready for some major oil finds in the South... LOL ;)

http://www.telegraph.co.uk/news/9180967/Parachute-Regiment-to-return-to-Falklands-for-first-time-in-30-years.html

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Cairn have just completed some corporate action, buying Agora Oil and Gas.

Is it therefore Cairn who fill farm into FOGL's licenses ?

From the farmout RNS

............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............


Given the Cairn purchase of Agora includes cash and shares then yes, that is a corporate reason for being unable to enter into the FOA/JOA until that purchase was completed. So I would suggest Cairn now moves to favourite to be the one to farm in.

http://www.thisislondon.co.uk/business/business-news/falklands-tycoon-laughs-off-argentine-threats-7618602.html

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Perking up, getting ready for next week. Should see loads of buying of BOR and FOGL next week.

I am guessing the timing of the 20th March Farm Out Potential RNS was done because on the 21st of March there was a meeting of the FIG, where one of the topics was an add on to the FOGL drilling program.

http://www.epd.gov.fk/wp-content/uploads/1.0%20March%20agenda%20front%20page.pdf


So given the change was likely, imo, the application to drill a 3rd well, if the farm out goes ahead, its why they RNS'd on the 20th March.

The farm out means FOGL can :

Drill 3 wells and do a 3D seismic study starting Q4 and still, after all that is paid for, including demob costs - have well over 100 million US$ in the bank - therefore meaning there is no need for any fund raising until the 3D is complete in 2013 and a new CPR is done.

If FOGL only drill 2 wells and do 3D in Q4 they will end up with nearly 150 million US$ cash in the bank as they issue their CPR in 2013, meaning they could fund another 2 wells in later 2013 with their farm in partner without the need for any further fund raising.

A very nice position to be in, and lets hope the farm out going ahead news is coming very soon.

And worst case would therefore be, Loligo and Scotia both fail - FOGL give up and do no 3D, they would have circa 195 million US$ cash at the end of drilling 2 wells and could return to shareholders. 195 million US$ = 38p a share cash left over if the farm in goes ahead and FOGL drill only 2 wells and fail on both.

It means therefore you could be looking at 5000% or more gains - or worst case cash in bank value and fall of less than 50% from todays buy in price.

50% down to cash leftover value if both wells fail or 5000% or more up - those odds do like mightily attractive - perhaps why I am so long in FOGL.

Anf if Borders come up dry with the two next wells...swap everything over into FOGL....so many prospects.....and who knows, BOR might just strike it lucky....best to have more FOGL than BOR...that's for sure at the present moment....

or neither until bor results are known and not just rumoured or worse, BB 3rd-hand hype and rubbish from other sites

http://www.oilgasmonitor.com/falkland-islands-oil-gas-exploration%E2%80%99s-newest-frontier/1714/

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Any rumours anybody ?.....

This article is good, it would have been better if it started with

"BP, which has assets locked up in Argentina that its trying to sell but so far has not been able to, has said.............."

LOL

http://www.laht.com/article.asp?ArticleId=490694&CategoryId=14093

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Results out today, finals.

Have to redo my sums a little now with confirmed news on cash.

Cash now is 184 million US$

Expenses for 2 wells is 140 million US$.


Now if the farm out goes ahead.


Cash will be 279 million US$.

Expenses for 2 wells would be 105 million US$.


So after drilling 2 wells (with farm out) FOGL will be left with cash of 174 million US$ or say 33 pence a share.

So the downside to cash in the bank if both FOGL wells fail is 33p a share - so you get 50% downside if they both fail and over 5000% upside if they are a success.

Very nice position.

http://www.thisislondon.co.uk/business/business-news/falklands-boss-were-awash-with-cash-7643310.html

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From todays Times ( http://www.thetimes.co.uk )


Explorer dismisses Falklands oil threats

Falkland Oil & Gas’s pre-tax losses for the year to December 31, 2011, rose from $3.7 million to $6.6 million amid a rise in financing costs

Ken Ardill Tim Webb Published at 1201AM, April 14 2012 The Times

Argentinian threats against companies involved in the Falkland Islands have no legal grounds, according to an AIM-listed oil explorer about to start drilling there.

Tim Bushell, the chief executive of Falkland Oil and Gas, said that international law did not support threats from Buenos Aires to sue oil companies operating in the Falklands and the banks helping them. Having sought legal advice on the issue, he said there was “nothing they can do.“What actions can they take? Unless you have got assets in Argentina which could be seized, there is nothing under international law which they can use. It’s outside their jurisdiction.”

Last month, Argentina’s Embassy in London sent letters to as many as 15 banks, thought to include Royal Bank of Scotland, Barclays and Goldman Sachs. They were warned that they faced criminal and civil action in the Argentine courts for advising Falkland oil explorers or even if their analysts wrote research reports about them.Falkland Oil & Gas will drill the first of two deepwater wells in June off the largely unexplored south coast of the islands.

The first well, at 4,756ft, is a similar depth to BP’s doomed well in the Gulf of Mexico. It is much deeper than the 1,500ft well drilled in 2010 by Rockhopper Exploration — named after a native species of penguin — in the northern basin for its Sea Lion prospect, the islands’ first commercial discovery. The 450 million barrel find raised other explorers’ hopes that they would enjoy similar success.

The company still hopes to raise $250 million (£158 million) by selling a quarter of its prospect. An unnamed partner has bought an option over the stake but had to delay completion owing to a “corporate situation”.

Mr Bushell insisted that the hitch was nothing to do with Argentina’s legal threats. “We have no expectations over major problems with partners,” he said.

Falkland Oil & Gas’s pre-tax losses for the year to December 31, 2011, rose from $3.7 million to $6.6 million amid a rise in financing costs. Its shares closed up 3 per cent at 68½p


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http://www.bloomberg.com/news/2012-04-14/argentina-s-falkland-oil-threats-are-groundless-times-reports.html

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