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

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

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Falklands weather is similar to West of Shetland

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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/

brokers did nothing when marconi was going down the pan.....i watched business lunch when macaroni hit a quid and idiot broker said it couldnt get much worse....what an idiot!

similar to nrk recently, most brokers sat on their hands till investors were screwed.

if brokers were that good, they would be on a beach by now not waffling pretending they know things

Glad you got that off your chest, scot! :o) Probably not far wrong either.

Fogl agm presentation now on the company webite. Much updated prospects pics, including new targets e.g nautilus, etc

http://www.fsponline-recommends.co.uk/page.aspx?u=rhps0708fd&tc=ERHPD714&PromotionID=2147065637&u=334287&g=0&o=22807&l=158254&


Well I was holding out to buy back in at 1.00 !

Smiler,

Obviously the above is relevant as it has dates of June 2008 but they are repeating stuff of same time last year because they were sending the same deal out, worded a bit different and on joining a partner of RHP'S at a cost of (if I remember correctly) 200.
This just appears to be an updated version.
Not knocking FOGL as I'm in FKL, so I obviously want FOGL to succeed, just stating a fact.
High risk (but not as high as 1 year ago) high reward.

did you see the article at the weekend (in the Times I think) saying that several Aim stocks will go the same way as TAN because they are overpriced.

The only ones it mentioned by name was the Falkland oil companies.

Can find it on line I think.

Hi dealerdear,

I saw it in the Daily Telegraph. It was mainly saying that there are many AIM stock at risk solely because many of their shares are held by PI's who follow tip sheets and buy expecting almost instant profits and when nothing happens, or no news quickly become impatient and sell out, especially in a down market.
The writer was obviously right as can be clearly seen, but for those of us looking for the AIM listed companies that have huge risk/potential and are prepared to sit and hold with patience FKL/FOGL and the other Falkland linked companies, like look less risk now than when the markets were more solid. If these companies SP continues to drop, I think it will be because of none direct company influences more than those direct to the company (if that makes sense).
As to being over priced, on fundamentals YES, on potential, who is to say.
I feel we are due more pain yet, before we reap those hoped for rewards.

FOGL has dropped drastically.

Kinda stating the obvious!
Support at 80p?

Have been holding off buying harry, 90/94 I reckon I will buy then with luck ! as I still think These could prove a good buy for 2009 :)

From RigZone:


Falkland O&G Shops for Rig, Plans to Drill by 2009


Falkland Oil and Gas Limited (FOGL), the oil and gas exploration company focused on its extensive license areas to the South and East of the Falkland Islands, held its Annual General Meeting.

2007 was a year of significant progress. We undertook additional exploration activity to further de-risk the project; this work confirmed the high potential of the assets. In aggregate, our ten top ranked prospects have the potential to contain hydrocarbon resources in excess of 10 billion barrels oil equivalent.


The farm-in deal secured in October 2007 with BHP Billiton includes a commitment to drill a minimum of two exploration wells. BHP Billiton has extensive deepwater drilling expertise and the deal added credibility to the exploration assets and was a crucial step in moving towards a drilling campaign next year.

Preparation work for the drilling program is in progress. BHP Billiton is currently reviewing a number of options to secure a suitable rig and focusing on the selection of the best prospects for drilling. An environmental impact assessment has been initiated, together with other planning activities that will be required before drilling can commence. Planning for site surveys is also underway and these are expected to be carried out in the second half of 2008.

FOGL is poised to enter the exploration drilling phase with a material license equity interest in what may well be a significant new petroleum region in the South Atlantic. We hope to commence exploration drilling in 2009, the next year promises to be a very exciting one for FOGL. The rewards for success could be substantial, given the large resource volumes of the prospects being targeted.

60p more likely

60p ? Hmm I dont think it will !!

bit severe i think hyleo this time. i dont have this but fogl have bhp on board and they will prob drill 3rd quarter next year

it is exactly because there will be no action far another 12 months that sp is suffering, even though this has been well know for a considerable time ..... that and of course general markert malaise

well they informed market of this news last year i think......its just market being badly down in last 2 months esp maybe

that too, and also DS putting out strong sell note on all falkland stocks will not have helped

Future raising of funds will not be easy as it has been either....one day (unless the price of oil drops back to below $70 or so), all the action will be in the South Atlantic...but when ?....patience will be necessary for the Falkland shares and putting money in those stocks now ?, a longterm view should be on the cards !.

as i said its in 2009 req field.......hardly long term....more medium term.

i spoke to financial bank manager a few months ago and they always suggest holding shares for at least 5 years

especially in B&B n NRK - lol!