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/

Smiler,

Excellent. One of the best and Funniest analogy of the workings of the market I have ever seen, and it contains a lot of truth.
Don't want to pinch this, so can you please put same post on the Talk to yourself thread as I am sure others not linked to FOGL will appreciate it.
Regards Greek.

Thats ok greekman you copy it ; ))

OK done. Cheers

Sunday, October 19, 2008

Direct Link: http://www.mercopress.com/vernoticia.do?id=14917&formato=html

BHP Billiton visits Falklands to organize oil drilling program
Representatives of global minerals giant, BHP Billiton, were in the Falkland Islands last week laying the groundwork for a Southern Ocean drilling programme, which they hope will begin in some 12 to 18 months time.


Zoom

Texas based Deb Pfeiffer, who is head of the Falklands exploration project and Julie Tushingham, who is the External Affairs Manager for subsidiary, BHP Billiton Petroleum (America) Inc. global exploration programme, said that it was still too early to say what impact drilling operations would have on the lives of people in the Falklands.

They seemed confident, however, that the companys programme would not be impeded by the melt-down of financial institutions going on in other parts of the world.

Since they entered into a licence farm-in agreement with Falkland Oil and Gas Ltd in October 2007 and acquired a 51% holding in the company, the presence of global exploration giant, BHP Billiton, has considerably increased interest in oil exploration in Falklands waters.

Described as the worlds largest diversified resources company, as at June 30, 2008, by their own reckoning BHP Billiton had some 41,000 employees working in over 100 operations in 25 countries.

BHP Billiton was formed in 2001 from a merger of two successful companies with historical roots going back on both sides to the 19th century.

The merged company, which has headquarters in Melbourne and London, has substantial interests in oil, gas, liquefied natural gas and diamonds. Other commodities in which the company has major interests include aluminium, energy coal and metallurgical coal, copper, manganese, iron ore, uranium, nickel, silver and titanium minerals.

Currently involved in oil exploration in ten different countries, BHP Billiton has extensive experience of drilling in deep water environments. (PN).-

Thanks, cynic...in profit now with shorting FOGL. This will go to 20-30p.

i didn't short, not because i didn't trust my judgment, but because the spread is silly - invariably 4-5p

If oil keeps on dropping there will come a time when the Falkland projects will be put on hold or some of them anyway, and all you need for these stocks to drop is a rumour !, one day they will come right but perhaps not right now !.

agreed Smiler! Once the fear subsides in the markets (and it will....) and the oil price comes back to $100 per barrel (and it will....) anyone buying at these levels or lower shall be rewarded as fogl SP comes back to its usual trading range. This is one to trade - who knows whether there is oil in economic amounts in the FIs (the experts THINK they may have a decent chance)? I hope and think too that they have a decent chance of drilling a gusher but in the meantime i am going to buy on the big dips and sell some on the rises.

Aye we could all do with a nice gusher !! and I will buy some should it go to 55p ; )

If the price of oil continues to drop, I doubt it will drop much further.
As to the Falkland fields being put on hold, my own opinion (for what it's worth) is that drilling will not be delayed as the price of oil can easily go past the $100 a barrel mark almost overnight, and it takes months/years for a field to reach on flow date.
The price of oil will always fluctuate, but for many year to come will remain at near or well above the price which made it the original Black Gold.

I tend to agree Ref THE PRICE OF OIL !! And if the Drilling remains on track we should see a price a lot better than Now !! ; )

it takes months/years for a field to reach on flow date. .... and that is the whole point ..... in fact years is the answer, not months, and no one has even found any oil yet

Aye it does but not for the SP to move up to make a profit and get out ! ; )

true, and knowing when to get out and so acting being the operative phrase!

I am good friends with Mystic Meg ; )) I wish ; O

cynic, post 417

They have found oil over in the Falklands in the last drilling campaign which was in shells acreage which now belongs to Rockhopper now, it was free flowing and it had to be capped

http://www.rockhopperexploration.co.uk/cube.html

It was deemed not to be a commercial find and it was never logged but back then oil was $10 a barrel so it would not be economical getting it out the ground.

Anyway, FOGL will fall further down

justyi go away

i agree with justyi

Cynic I think this will hold around the 50/55 mark and next year if all remain on target a nice profit from here !