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

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

•
Falklands weather is similar to West of Shetland

•
Remote location but there were no major issues during 1998 drilling campaign

•
Anchored semi-submersible or drillship for exploration drilling

•
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/

At the moment 76-82p says it all could go either way.Have been in and out of this one in the past but with the price of oil falling am sitting on the sidelines as any further fall is only bad news for falkland minnows imho.

RED LINE FOGL, INTER RESTING.

hyleo must be being seriously burnt here

; )) I have done well on RKH never held it B4 got in at 12 now 30 !! and for the ones who got FOGL AT 54/55 ALSO in profit as I have said you can make money here if your timing is Right ! but lets see what happens next year !!!

ah well, if any of us knew where the top and bottom of any stock was, we could be multi-billionaires!

Aye Try Tealeafs or Mystic Meg ; )

have to be a damn russian in uk

This has tic up well over the last week ajcc from 55 to 95 !!

it really has done exceptionally well, especially with oil now only $60

Todays penguin News

Phyl Rendell, Director of
Minerals and Agriculture
attended the International
AAPG (American Association
of Petroleum Geologists) in
Cape Town, South Africa.
Cape Town is a key destination
for petroleum geologists
that have an interest in oil potential
in the South Atlantic,
said Mrs Rendell, adding that
both BHP Billiton and Arcadia
Petroleum Limited have licences
in offshore southern
Africa, as well as in the Falklands
and there is potential to
link exploration activities.
Meetings were held with
Rockhopper Exploration and
Borders & Southern Petroleum
during the event and the stand
attracted attention from a
number of other oil company
representatives interested in
the area.
Mrs Rendell said that with the current drop in the oil price and a
perceived downturn in economies globally, there was an opportunity
to learn from the industry about the impact these factors may have on
future activities. Although there is much uncertainty about global
demand for oil, it was made clear at the Convention that the Falklands
remains a place of interest and potential investment for oil companies
and some industry representatives commented that rigs may become
less costly and more readily available as a result.

More ups and downs to come in the next year for this one...!.

http://oilbarrel.com/home.html


07.11.2008
Drillers To Focus Their Sights On The Falkland Isles During 2009

More subdued oil pricing may not have helped the cause but drilling some of the high potential - and high risk - targets that lay off the Falkland Isles appears closer, finally.

It has been a long wait, especially given the scale of reserves that are thought to sit quietly beneath the waves in this cold, remote corner of the South Atlantic, a place made famous by the bitter conflict of 1982 that pitched the UK against Argentina.

More than a quarter century later, this feud has not been forgotten - Argentina still wants sovereignty talks over the islands - though chatter has turned to another matter altogether, notably the prospect of finding oil and gas.

There is a belief that offshore there are reservoirs containing huge volumes of both.

One Falklands enthusiast, AIM-listed Desire Petroleum, has identified a single prospect, known as Alpha, that has mid-estimate potential recoverable reserves of up to 15 trillion cubic feet (tcf). By any standard around the world that would be a gas find of immense proportions.

But this is all largely theoretical. These figures are still estimates until proven by the drill bit.

Nonetheless, the few wells that have been drilled in the Falklands offshore area date back 10 years or more but delivered encouraging results with most encountering hydrocarbons.

Investors have needed to be patient, with first, low oil pricing discouraging wildcat wells in such an unproven territory, and then, as prices spiraled upwards, the sheer demand for rigs worldwide and consequent cost pressures.



There are now signs that things are again starting to pick up. After a year in which large energy groups woke up to this little-known potential, farming into blocks held by niche operators like Desire Petroleum, drilling is again coming back into focus.

Officials from BHP Billiton - which in 2007 teamed up with Falkland Oil & Gas (FOGL), another AIM company with high hopes for the region - visited the islands in late October to plan drilling work. They hope to begin with the next 12-18 months.

After years of waiting, steadfastly accumulating data across its blocks, FOGL now believes that 2009 could be the year when its deepwater prospects, to the south and east of the islands, are drilled.

This is likely to be during the latter half of the year, with BHP Billiton still assessing rig options. Work that can be done is being done. FOGL said in late September that a first prospect is being determined with site surveys to kick-off during November.

One option is the Loligo prospect, which it reckons contains most likely un-risked reserves of 3.5 billion barrels of oil a find that - if indeed borne out by the drill bit - would have a very material impact on the companys fortunes.

Desire Petroleum, which operates in the North Falklands Basin, is in a similar position. It has secured farm-out agreements with Arcadia Petroleum to help meet the cost of a pair of initial wells.

This includes footing the bill for drilling the Alpha prospect in return for a 50 per cent share in its Block 25/10 and part of Block 25/15.

Arcadia will also pay 85 per cent of the cost to test another prospect, Ann, in return for a 35 per cent stake in a sub-area of Tranche C that also includes the Orca South prospect.

Although not as high profile an entity as BHP Billiton, Arcadia - primarily an oil trading group - is a strong partner to have onside, part-owned by John Fredriksen, the Norwegian shipping billionaire who controls a number of oil service companies.

The remaining chunk of this well will be covered by another AIM hopeful, Rockhopper Exploration, as part of a larger transaction to muscle its way into the Falklands picture.

Signs of a softening in the rig market, perhaps influenced by the sudden drop in oil prices, have fuelled speculation that these first wells could come sooner rather than later next year. This, however, has not been confirmed, and the official line is that we will have to go on waiting until the second half of 2009 before testing the water.

The business done during the past year or so has been important to prepare the ground for this upcoming round of drilling. Those juniors active in the region, despite their best intentions, have been clearly hampered by the shortage of those two vital components to mount a successful drilling offensive - namely cash (and lots of it) and access to a rig.

With BHP Billiton in the ring, Desire Petroleum now hopes to turn potential into proven. Even after recent transactions it still maintains an approximate 30 per cent share in the total Alpha prospect, making this a definite company-making play. Desire has said that it estimates the chance of success in finding hydrocarbons on the prospect at 50 per cent.

Rockhopper has also been deal making, recently stating that it is in talks with potential farm-out partners. The AIM-quoted company holds a 100 per cent interest in a bunch of North Falkland Basin licenses, plus smaller equity shares in others, in more shallow water.

Last month it responded to a Financial Times report, denying that it was selling up to BHP, but acknowledging that was in talks with potential suitors for a slice of its acreage.

It is also continuing the search for a rig in conjunction with other operators in the North Falkland Basin, it said in a 23 October 2008 statement.

Rockhopper said technical work done across its licences indicated estimates of unrisked recoverable reserves of 4.3 billion barrels of oil plus a multi tcf gas prospect; again, all company-making stuff.

Even with oil prices slipping back it is still historically high and - as these operators have noted - more than sufficient to support economic drilling and production of any future discovery from this isolated region.

Borders & Southern Petroleum is the other notable UK AIM-listed group with interests in this intriguing, but still largely unproven, oil province.

It has completed 3D seismic on its South Falkland Basin licences and is now in the process of identifying drillable prospects. These, it said, will likely include many large-scale structures with multiple stacked targets.

It has not ruled out drilling a well next year, either, but this could hinge on whether the company is prepared to dilute its ownership. In its third quarter results, published late September, it stated that it would be actively pursuing early rig access, and that it could well farm-out, not only for financial reasons, but also for strategic ones, including the chance to drill early wells through greater access to rigs via a partner.

Again, the influence of a major industry name, with some clout in the industry, and the ability to pull an offshore rig into the South Atlantic, would not hurt.

But this is still a hugely speculative play, risky, though with huge potential rewards. At the turn of the year, analysts might have said that share prices were detached from reality given that none of this is proven.

Desire Petroleum shares are way down from when they spiked early this year, as are those of Borders and Southern. FOGL shares are not far off three-year lows, roughly half their value from mid-2007, the time when it secured BHPs involvement.

The fact is until the drilling gets underway and this potential is tested we will not know which position reflects more accurately the true value of these companies. The answer may become more apparent during the course of 2009.

Penguin News today

DUE to arrive in Falklands waters in mid-January is the brand new Fugro
Saltire a survey, construction support and intervention vessel, built earlier
this year, which is to carry out seabed surveys for BHP Billiton.
Moored in Falmouth in the UK at present, visitors to the docks have
said they are impressed with the vessel. Andrew Bell, formerly of Curnow
Shipping Ltd and a friend of Rob Pitaluga, said the ship is the largest off
shore supply vessel he has ever seen.
It is thought that the Fugro Saltire is being fitted with a drilling rig
before heading South.

http://www.falmouthpacket.co.uk/news/fpboating/3966445.Fugro_Seacore_drilling_contract/

Fugro Seacore drilling contract

This must be considered good news and confirms BHP/BLT are serious about starting a drilling programme in the near future.

RNS 16.12.08
"Site Survey Commences
The MV Fugro Meridian survey vessel has now commenced work on the programme. The MV Fugro Meridian, which is operated by Fugro Surveys Limited, will acquire digital site surveys in order to assess drilling hazards in the top few hundred meters of sediment below the sea bed. Detailed sea bed bathymetry and imaging surveys will also be obtained to assist in ensuring the stability and suitability of the selected drill sites.

The British Antarctic Survey vessel the James Clark Ross has been contracted to deploy wave and current meters. These instruments will be used in the environmental assessment and the preparation of rig mooring and riser design.

The final part of the site survey is a coring programme that will establish the make-up of the top 150 metres of seabed. Information derived from this survey will be used to assist in the detailed casing design of the wells. This survey will be carried out by the MV Fugro Saltire and is planned to commence in January 2009.

The site survey programme will be undertaken on 5 different prospects, which represent a range of geological play types across the licences.

Outlook

The site survey program is expected to be completed in early 2009. Further updates on the progress of the site programme will be provided on FOGL's corporate website."

http://www.mercopress.com/vernoticia.do?id=15522&formato=HTML

BHP Billiton oil survey vessel on its way to Falklands
The Falkland Islands are expecting the arrival in mid-January of the brand new Fugro Saltire a survey, construction support and intervention vessel, built earlier this year, which is to carry out seabed surveys for BHP Billiton.




Moored in Falmouth in the UK at present, visitors to the docks have said they are impressed with the vessel. Andrew Bell, formerly of Curnow Shipping Ltd and a friend of Rob Pitaluga, said the ship is the largest off shore supply vessel he has ever seen.

It is thought that the Fugro Saltire is being fitted with a drilling rig before heading south.

Representatives from BHP Billton visited Stanley last November to lay the groundwork for the Southern Ocean drilling program which they hope will begin in some 12 to 18 months time.

At the time the head of the Falklands exploration project, Deb Pfeiffer, and External Affairs manager for BHP, Julie Tushingham were confident that the melt-down of worldwide financial institutions will not impede the program.

Since BHP Billiton 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 BHP Billiton has considerably increased interest in oil exploration in Falklands waters.

BHP Billiton interests refer to the East Falkland Basin located off the southern and eastern coast of the Falkland Islands.

The production licenses cover approximately 18 million acres and are located in water depths ranging from approximately 200 to 2,000 meters. At the time Steve ORourke President Exploration of BHP Billiton Petroleum said

"We believe this substantial Falklands acreage will be a good addition to BHP Billiton Petroleums global portfolio and we look forward to working with our partner to pursue this under explored area"

He added that "with our strong focus on growth, we now hold a significant interest in this high potential basin and will utilize the talent of our team to safely execute an exploration program in the Falkland Islands.(PN, MP).-

In the present climate of appearing to get only bad news, a picture to gladden the heart.
Not very good at geography, anyone know if there are any icebergs between Falmouth and the Falklands.
The way my lucks going at the moment, if there is this is the one ship that will hit it.

icebergs to be found further south.... - thankfully

Cheers Ajcc,

I was being facetious. But with my luck and global warming, one might just be drifting as much as the SP, although in a different direction.