NOTE that FKL are now FIH group plc. Epic FIH.

It is now over 4 years since I started this thread.
During that period a lot has happened (an understatement if ever there as one).
Several oilies have drilled numerous wells, most with little success as yet, although Rockhopper Exploration has made significant finds.
These finds are in the process of being updated and have drawn interest from at least 5 oil production companies.
The sp of FKL in Oct 2007 was around 400p, which is almost level with todays sp.
Due to many what I consider low risk factors, the sp is well below true valuation.
In saying that I am leaving all fundamentals out of my reasoning, and looking solely at potential.
Over the last few months, I have read numerous reports regarding how the current exploration will make the Islanders rich.
Of course that wealth will be passed along to the businesses that are situated on the Falklands themselves.
With Falklands islands Holdings being 'The Business' on the islands, with fingers in many pies, they are ideally situated to cash in on all the areas mentioned.

I suggest to anyone who as not been following the Falklands Story, or are new to this thread, to peruse the latest news releases of FKL. Also those of RKH (Rockhopper) Fogl (Falklands Oil and Gas) Des (Desire Petroleum) and Bor (Borders and Southern).
I am not pushing any of these other companies, but to post all the relevant updates on this header would take the whole page.

Remember who made steady big money during the Klondike Gold Rush.
OK some miners made fortunes, but the big steady money was made by those who saw the potential in suppling the essentials, IE those that supplied the tools to do the job.
I look at FKL as a sort of hedging to the explorers themselves.
But with hedging like this, we can all win.

As the sp rises so does the spread. Typical market games.

FKL up 50p to 310 by lunch. This is a GOOD day after such a long wait!

Yet more movement from one of the Falkland Oil Crew Companies.

Rockhopper Exploration, the North Falkland Basin oil and gas explorer, is pleased to announce that it has agreed terms with a third party energy company for a farm-in to one of the Company's licences, through a contribution, at a promote, to the costs of drilling one well on the licence and to certain back costs. A Letter of Intent to farm in has been signed and discussions continue to progress the agreement this into a fully binding joint venture.

Now I wonder if this will end up like the bus stop syndrome. You seem to wait for ages for one to come along, then what happens, three or more come at once.

Tipped in the Independent.

Very rarely take tips at face value, but this write up makes sense.

The interesting bit about Falkland Island Holdings is its 15% shareholding in Falklands Oil and Gas (FOGL). Investors may look at the conglomerate instead of a direct investment in FOGL because it has a diversified income stream, an 8p dividend and doesn't rely on a big find. If there is one, however, shares will soar. Although yesterday's gain might have taken out much of the near-term upside, its prospects look good, so buy says the Independent.

As reiterated in todays press, the oil majors such as Shell, BP, Exxon and the like are still desperate to boost their inventories, mainly due to the fact of low oil reserves on their books, but also due to intentionally over estimating for the last fews years in order to enhance their share prices.
As the Falkland field possiblefinds are being talked about in the same volume category as the BP and Chevron recent finds in Mexico how long will it be before the minnows such as Des/Fogl/Rock and the like are taken over.
IMHO the question won't be so much if as when. Will they wait till oil is pumping in sufficient quantities and risk loosing out to a competitor that jumps first or chance getting in on the ground, IE now.
Both strategy are a risk but which once will they take.

Re the RNS.

FKL sell 20% stake in FOGL.

OK, they have made a very nice profit on the sale, but as I mainly bought FKL because of it's investment in Fogl, initially on the news I though that this was a bad move especially as drilling looks closer than at any time.
On seeing the sp rise on the news, I had to look at the other angle.
I now feel that FKL have played this very well with an astute move.

The money attained will be available for, "The proceeds of sale give us the flexibility to take advantage of investment opportunities particularly in the Falklands and will leave us with a modest level of gearing .At the same time we have retained a very meaningful shareholding in FOGL.

As Gismoe states, they have a good part of the infrastructure.

In fact they retains a number of parcels of land aggregating some 400 acres, with the potential for residential or commercial development. The Company also owns 22 residential properties which are rented out on a long-term basis to individuals, business users such as Ministry of Defence contractors, and fishing companies. FIC is steadily developing these sites as the economy of the Islands continues to grow and is well placed in the event that significant oil or mineral production takes place.

I think that says it all. When/if the oil stats to flow the price of land and development will rocket, as it always does when the oil flows.

The population of the Falkland Islands will also multiple several times, which will also mean big profit opportunities for FKL.

So from being initially not happy and surprised at the move, I am quite pleased

Lets hope the Argentines see it your way!

HC
maybe thats what the war was all about? it's what they usually and most are or seem to be(unless we are invaded) despite or regardless of the supposed reasons that we are fed via the propaganda machine that has existed throughout history. although we ( joe public) seem to never be aware of the "real" reasons at the time, or even after.
no guarantees but i suppose governments have to weigh up the risk/reward factors and then feed the ganda to us in a propa way.
doent mean i think they will find anything, maybe they will, maybe they wont. as always just my opinion and please all dyor
regards
jkd
edit ( unless we are invaded) add ; including the invader, after all they have a motive also

Just tried a test trade to sell. Received following message.

'This stock cannot be executed automatically at this time
Please enter a limit price to place a limit order for this stock or try again later'.

I appreciate this type of message is not unknown, but it is rare.

Could mean a further noticeable increase/decrease in the sp.

Views anyone.

2500 buyable on auto-trade with Selftrade. Maybe your sell is over the on-line limit.

gm
if you want to sell then just do as requested. put in a sell limit order. presumably you are taking some profit,i.e. price is above your purchase price. altenatively it would be a a sell stop order. and vice versa. even just 1 or 2 ticks should do the job.
regards
jkd

btw
if you do sell on limit it is important to remember to cancel any sell stops gtc if they are sitting there,
regards
jkd

Harrycat,

My trade sell was within the on-line limit.

Jkd,

I was thinking about selling, but mainly wanted to see the on-line offer.
Did not bother with a sell limit order as the only time I do put a sell/buy limit order in is when I cant keep a 100% watch on the sp. As I am sure you know, with shares as volatile as FKL anything can happen to vastly change the sp, and it would be just my luck to be unable to cancel my order, as it suddenly shot up.

So will watch and wait.

EDIT...JKD,

Just seen your last post. It takes me so long to type (now on 2 fingers) I had started my main comments before you had posted.

Regards Greek.

gm
i dont know about you but all this business about sell limit or buy limit can be really confusing. what about buy limit. a good broker can explain all, mind you, he'll probably want a fee. mr google costs nothimg.
regards
jkd

Two very good/positive articles.

Falklands oil hunt gets serious
Created: 2 December 2009 Updated: 3 December 2009 Written by: Martin Li

http://www.investorschronicle.co.uk/Companies/ByEvent/Fundraisings/Analysis/article/20091202/0d8a4ffe-df32-11de-a97c-00144f2af8e8/Falklands-oil-hunt-gets-serious.jsp


Exploration phase to bring financial benefit to Falklands private sector
THE Falklands private sector is set to benefit financially from the next oil drilling round scheduled to begin early in February.

http://en.mercopress.com/2009/12/03/exploration-phase-to-bring-financial-benefit-to-falklands-private-sector

The Falkland Oil Fields are nicely getting on the Radar.

Of interest. Shows how things are progressing.

http://www.penguin-news.com/pn-login_sub.php?typ=paid

Drilling preparations step up a gear onshore AS the semi-submersible drilling rig Ocean Guardian, contracted by Desire Petroleum from Diamond Drilling, continues to make its way south, a number of oil operators are scheduled to visit the Falklands to meet with government officials this month.

Desire Petroleums Chairman Stephen Phipps, Chief Executive Officer Dr Ian Duncan and Finance Director Eddie Wisniewski are due to arrive next week for a round of meetings with government officials and others.

They will be accompanied by Ben Romney from Buchanan (Desires PR consultancy) and Robert Watts, a journalist from the oil industry magazine Upstream.

Three representatives from Rockhopper Exploration are also scheduled to arrive next weekend.

The Ocean Guardian, under tow by the Maersk Traveller, is still on schedule to arrive in early February, Desires Falklands representative Lewis Clifton confirmed this week.

A second Maersk anchor handling tug supply vessel is due to arrive late this month, and the third rig support ship, a platform supply vessel, will complete the offshore drilling support package, he said.

The pace dockside is about to pick up with the first of two cargo ships, Thor Leader, carrying oil equipment from UK, arriving next week.

The second cargo ship, Honest Rays, arrives on January 15.

Mr Clifton said discharge operations would be undertaken 24 hours a day until the 14,000 tons of equipment onboard were sorted and stored, pending the arrival of the Ocean Guardian.

Onshore specialised support personnel will begin arriving in Stanley during the next few days.

Mr Clifton said up to 12 personnel would be based in Stanley for the duration of the drilling programme.

As with oil rig workers, these personnel will rotate 28 days on and 28 days off.

The shore support personnel will be largely based out of the integrated pipe yard and laydown facility being constructed at Coastel Road by Byron McKay Port Services, of which Mr Clifton is a director.

The facility will include modularised office and warehouse accommodation, and the silo plants (muds and cement bulk storage), although other private sector facilities will also be utilised.

Mr Clifton said Byron McKay Port Services had secured an onshore services support contract, and were working with AGR Petroleum Services - the oil operators contractor - to provide the ship-shore-ship logistics support interface.

A number of local appointments have been made to support the contract terms.

These include an aviation coordinator and a number of operatives, slings men, labourers and stevedores.

A two week training programme for operatives was undertaken during early December under training guidance brought in from Aberdeen, said Mr Clifton, adding that security personnel would also be appointed for the duration of the drilling programme.

Helicopter support operations are to be provided by British International with an airframe due to arrive on the Ministry of Defence freighter next week.

Mr Clifton said work was also progressing towards bringing back on line the helicopter refuelling facility at Cape Dolphin on East Falkland, which was set up during the last drilling round in 1998.

However, unlike in 1998 when the Borgny Dolphin oil rig was visible off Cape Pembroke, the Ocean Guardian is unlikely to come into sight on arrival, said Mr Clifton.

Has the rig sank?

The sp has just bombed. Now 9.50% down on little volume.

Appreciate oil prices and any connected company has volatile shares, but this is ridiculous.

Rig has started drilling.

Just heard on the BBC News during a storyline on the rig starting to drill, the comment, 'It won't be long before the first barrels of oil change the Falklands forever.

Well if the BBC are sure there is oil there!

From a very lefty publication, but very interesting if you have the time to wade through it.

I have my own views but will leave others to decide how much fact/truth/fiction is contained in the article.

http://21stcenturysocialism.com/article/who_owns_the_falklands_01968.html

Interesting article re clumsy Clinton.

Hillary Clinton's Cold War Strategy Didn't Work in Brazil

http://www.brazzil.com/component/content/article/217-march-2010/10367-hillary-clintons-cold-war-strategy-didnt-work-in-brazil.html