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/

Scotty...careful with this "up" today....it could resume its downward course tomorrow.....I've been caught out many times in the past !, and with this market there are or are going to be so many undervalued oilies by september !.

its rocketing today then! lol

i remember stuart rose in jan after profit warning saying he didnt believe in al this doom and gloom....hmmm, wonder what he thinks now, every person i speak to is struggling financially

kentpaul, are you in fogl ?now ?

looking good for Falklands

14 August 2008



Desire Petroleum plc

('Desire' or 'the Company')

Farm-out Agreement and Grant of New Acreage

Desire signs agreement with Arcadia Petroleum Limited

New licence awarded over major new prospect

Exciting new gas play identified

Another good day today! Up 3.5% at 123.

I trust hyleo managed to get in back in July.

Yes I am keen on FOGL, I think the SP will Drift but 2009 is looking very promising and as for hyleo thats all he seems to do is drift from thread to thread posting silly predictions !!

http://www.fleetstreetinvest.co.uk/investment-services/red-hot-penny-shares.html

yes smiler

but he doesnt post when sp suddenly shoots up.....so he must be getting hammered on these ones.....lets hope so.

any good news on fogl will help other falkland ones too a wee bit.

keep up your good info on other threads

why are you so obsessed with wishing ill luck on others?

only on people who like to see other people's investments being trashed......as i said, its like laughing at innocent person being attacked in the street in uk.......anyway, why u ned to cut in on every thread to stick your nose in on every person share even if its not to make informative comments is beyond me.

u r just despicable.
i too disagree with much if not most of what hyleo posts, but it would never occur to me to wish him ill .... or even you for that matter

i dont like shorters.......they r just thieves......and thieves should be in jail.

you really are so ignorant, in all its connotations

A Personal Plea.
As a holder of FKL I often follow Fogl, Des etc.
It is a shame that this thread is being treated by some as a personal attack thread.
I know there is a squelch button but I am reluctant to use it as I do like to see all sides of a discussion, but when it gets taken over by personal insults it does not bode well for the thread as a whole.
Please lets get back to Fogl and connected discussions.

I don't see what's wrong with shorting...it's just another means of making money...one has to be REALISTIC when a share is not performing...you can ramp all you like. I'm not against that.
It's just like property shares...they have dropped so much with a bit of foresight.

totally agree with you hyleo ...... the whole reason for venturing into the stock market is to try to make money, and nothing else, though for some reason it is much more emotionally difficult to short than go long.

i find it diffisult to enthuse about the likes of FOGL (and there are a zillion other similar E&P companies), for even on their own admission, they will not even start drilling until (late?) 2009 ...... there is then perhaps a 20% chance that will find anything remotely commercial, and IF they do, it is still a long way from getting it out of the ground.

there was actually a major SELL note on all the Falkland E&P companies several weeks back ...... from memory, it suggested fair price of FOGL of only 20p

These South Atlantic E&P Co's are going to go up & down with news & hype. Take profit when poss, wait for the next dip & buy back in. Just look at the chart. Drilling is not guaranteed, nor is the price of oil when & if they hit the jackpot.
I don't think hlyeo's shorting is going to make a huge difference to the sp. Just wait 'til the hedgefunds start taking an interest!
As for Scot's rants, it seems that once the pubs have opened, most of what he says is influenced by ABV rather than PMA. (they open at what time?!!! Surely not! ;o)

prob 24-hour in Aberdeen ...... did you mean PMA or PMT?

29/09/2008 18:01 >> =DJ 2nd UPDATE: RAB Fund Closure Threat To Small-Cap Miners


By Elaine Mills DOW JONES NEWSWIRES LONDON (Dow Jones)--The potential liquidation of RAB Capital''s troubled natural resources fund, pending a shareholders'' vote later Monday, could have dire consequences for many AIM-listed miners already battered by a difficult trading environment, analysts said. Hedge fund manager RAB Capital''s $900 million Special Situations fund holds sizable stakes in dozens of small mining and oil exploration companies. Later Monday, shareholders in the fund are to vote on proposals to lock in their cash for three years in return for lower fees, following a run of bad performance. If they reject the proposals, the fund faces liquidation, RAB said. That would force it to sell off its holdings, which would drive down the share prices of many firms alreadybattling with tough market conditions as investors shun riskier stocks. The AIM market index has declined by around 40% over the past year. "If RAB suddenly dumped all its shares on the market it would be carnage," Andy Davidson, an analyst at Fox-Davies Capital, told Dow Jones Newswires. Another analyst, who declined to be named, said because RAB owns largely illiquid small mining stocks it wouldn''t be able to sell unless it was at a discounted price. The longer investor commitment period is intended to stem the fund''s accelerating rate of redemptions. The Special Situations strategy fell by an estimated 22% in August, taking the year-to-date estimated decline to 48%. Fuad Sillem, investor relations officer for Arian Silver CORP. (AGQ.V) in which RAB has a nearly 7% stake, conceded that the liquidation of the fund could impact negatively on Arian. Another company arguably at major risk is Falkland Oil and Gas Ltd. (FOGL.LN),in which RAB holds around 37%. However, it''s chief executive Tim Bushwell said he wasn''t "unduly concerned" as he thought there was a "reasonable chance" that shareholders would accept the proposals. He said although liquidation would cause short-term weakness in Falkland''s shares, it wouldn''t impact on its long-term growth story. Richard Williams, the CEO of Oxus Gold PLC (OXS.LN) in which RAB holds nearly 28%, also dismissed the threat posed by a potential selloff. Williams said he was confident investors would accept the proposals, but even if they didn''t, he expected an "orderly handover" of RAB''s shareholding rather than a "fire-sale." There is a whole swathe of institutional investors eager to take up a stake in Oxus, he said. At least one major shareholder, AP Pension, which holds 15% in RAB Special Situations, has come out in support of extending the commitment period. Its Chief Investment Officer, Claus Buchwald Christjansen, said the early-stage mining sector was initially capital-intensive and needed "sticky money," or longer-term funding, for any investment to come to fruition. Christjansen added that AP Pension had "great faith" in Philip Richards as an investment manager. The result of the RAB shareholder vote will be released before the close of business in the Cayman Islands Monday, which is around 1000 GMT, RAB Capital said. It declined to comment any further. Company Web sites: www.rabcap.com