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/

I wasn't casting doubt on the principle, just that having been watching this one, RKH, DES, GOO & others, favourable RNS seem to be the dominant factors. It's tempting to trade just on TA or chart analysis, but I am not knowledgeable enough to rely on it with the very small AIM companies.

agree..

strange as it may seem, i also do not see the golden cross as anything other than a religious symbol ..... however, for a change, it was 25 or 50 dma crossing with 200 dma, both of which are rising.

as i posted above, i would certainly not be rushing in to buy tomorrow, as much as anything, because the markets are currently so damn dangerous ...... as for daytrading - well good luck to you!

obviously I dont daytrade shares like this, theres no point .. just currencies and commod futures..

dont need good luck though, been at it for 6 years and it does ok..

you have a far sharper brain than me, that's for sure ...... occasionally work Cable and gold as you know, but certainly not by trying to made a few pips during the day

http://www.localnews8.com/Global/story.asp?S=6850316

cynic it quite easy if you use a good momentum indicator and direct access with Interactive Brokers rather than some crook like a spreadbetter..

you can trade Oil on a 1 or 2 pip spread, very easy to take 20 /30 pips on an inventory release..

all yours! ...... i find a get very good service and decent prices from IG, often by dealing through the market rather than as indicated

small tic up today , sure you dont want to have a punt before the next rise cynic ! :)

have just been taking some more money off the table ...... i don't trust the markets at all

I dont think your trust anything never mind the markets, what a moody bugger!

life must be a laugh round your house!

well a rocky time for sure !

well you are such a smart girl, so tell me, do you think now is the right time to start throwing money into the markets, other than perhaps the odd short? ..... in my not at all humble opinion, now is the time to tread very cautiously indeed and for sure, taking a profit never seems to be such a bad idea in these unsettled times.

no your correct, summer is a time to be cautious, but I dont see any "fear" in the markets yet, so think this recent drop may just be finding the bottom of a "trading range" until November...

what do you mean by girl??

well i think not as old as une dame d'un certain age!
while there may be no fear as yet, there is certainly considerable unease, though from memory, both FTSE and Dow could fall further by quite a large (relative) number before the uptrend is deemed to be broken ...... no doubt you can tell us those numbers

Aug. 1, 2007, 12:43AM
'Nothing' prods oil to record $78 a barrel


By TOM FOWLER
Copyright 2007 Houston Chronicle


Oil prices shattered another record on Tuesday, settling at $78.21 per barrel, driven by the familiar drumbeat of energy demand outpacing supply.


http://www.chron.com/disp/story.mpl/business/energy/5014592.html

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1185847528&feed=oilbarrel


Falkland Oil & Gas Limited, which is focused on the virgin waters to the south and east of the islands, confirmed it is in advanced discussions which may or may not lead to a major resources company farming in to certain of its assets.

This is big news. FOGL opened its data room well over a year ago but despite reports of interest from all the usual suspects, a deal has been slow to materialize (not least because of the vast amounts of data to digest by risk-averse oil majors). Shares in AIM-quoted FOGL shot up by 42 pence to 123 pence on news of the talks, taking its share price up 55 per cent week-on-week. The shares have since eased back to 114 pence but are still more than 30 pence higher than in early June. Investors will be keen for those advanced discussions to firm into a concrete deal that brings the prospect of drilling a very real step closer.

great performance in a shitty market ..... def still a hold if you have them, but surely not the right level at which to buy ...... though "the prospect of drilling a very real step closer" that is still a long way off having a commercial flow both in time and even finding same

Still a fair amount of buying at this level, I can not see it dropping back to 76/77 for a while unless some delays in news ! however should we see some positive news will not see 113/114 for a while, or at least long enough to make a few quid !!

Holding up well, and still some buying ! cynic you could have got in at 112 and could be in profit by now, with more to come with luck !!