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/

Cynic that is like comparing a Ferrari to a larda there is no contest as FOGL are a junior in the Exploration front but there is no saying that FOGL over the years may not turn it to a Ferrari, more fool you to even putting a graph up to compare them.

I see my last question to you did not reply to

The lights on but dim!!!!springs to mind

did not see your Q ... obviously crossed .... getting a rig at the moment is child's play.

the only point of my comparative chart was to highlight the underperformance of FOGL realtive to some "proper" oil companies .... the same could be said even more meaningfully with the likes of GOO and AMER.

what it means of course, is that it is self-apparent where your money would have been better invested in the same sector AND it highlights why putting money into FOGL (and similar) at this juncture is more than a little premature

From FOGL PDF

IF oil found I don't think it take 5 years to produce.

Surmountable Technical & Commercial Hurdles

Weather conditions similar to West of Shetland or Norwegian Sea

Maximum water depths of 2000m shallower than recent Gulf of Mexico 6000m wells

Most prospects within 500m to 1200m water depth range

Conventional wells: neither high pressure nor high temperature

Production vessels: FPSOs built elsewhere and sailed to Falkland Islands

Falkland Islands situated between two major markets: US and Asia

cynic

And i suggest you put EEN in your chart a Junior penny share in 2002 now ftse 250 and one of the top E&P performers.

emerald 7-year chart below ...... not a penny stock even 7 years ago, but adequate rather than stellar since then .... also, if you bought at the very beginning(?) at 120 you had to wait 2 years beforwe it even recovered to that price .... in fact, did not really pick up any sustained head of steam until about Q2 2008 .... cocnclusion - you could have done far better with your money even in the oil sector

and here's the 10-year chart for Emerald ... makes even less impressive viewing

cynic

100 to 1 consolidation in 1st Sept 2004 I bought thousands @ 0.20p

Emerald was Third best performer in the FTSE all share in 2008

so well done, you seemingly bought at the bottom, and for once in your life you called it right - eventually ...... now if you had been really smart, you could have bought at flotation(?) at about 280 and seen a godawful return even now

are you also heavily into GOO and AMER?

no

posted twice

Re minnows.

Just remember, both Microsoft and Virgin were minnows once.
From small acorns, etc etc.

Good ol' Cynic!

My contacts in Stanley are quite chuffed with this so far. All going as they wish.

CEO's private secretary no doubt, and he tells her everything!

This is not a ramp for Shell.

Shell reported yesterday that although the price of oil is lower than it has been for some time, they will not allow the price to effect their exploration programme. They are looking to maintain their dividend and will if required increase their gearing in order to do so.
Not posting this to ramp Shell (I don't hold Shell shares or at present intend to buy), but just to show that although oil prices are on a recent low, oil companies need to plan many years ahead in order have availability when required.
Obviously the majors have the cash to invest in the future almost at will, but smaller minnows such as Fogl, Des etc can not afford to step back whilst demand slackens.
They can not afford to slow down in the race for oil.

Will FOGL win the race to get a rig and spud before the other minnows? Probably with the heavyweight backing of BHP/BLT.

http://www.oilbarrel.com/news/display_news/article/fogl-aims-to-spud-first-falkland-islands-well-in-late-2009-while-investors-keep-an-anxious-eye-on-th/771.htmlMarch 23, 2009

FOGL Aims To Spud First Falkland Islands Well In Late 2009 While Investors Keep An Anxious Eye On The Oil Price

The oil price did for the last exploration campaign in the Falkland Islands in 1998. After a series of wells in the North Falkland Basin failed to live up to pre-drill hype, the onset of US$10 a barrel oil gave operators little incentive to follow up those expensive and inconclusive wells. More than ten years on, those who believe the explorers of 1998 turned their back on one of the last major untapped oil and gas provinces in the world are once again watching the oil price. Last summers record highs certainly did no harm to the economics of drilling in these remote waters but the current slow down is also not without its benefits: the associated easing in the rig market should help the new crop of operators access the hardware they need to revisit these waters.
Falkland Oil and Gas Limited, which is focused on the never-drilled waters to the south and east of the Falkland Islands, hopes to be drill-ready for its first well in the third quarter of this year. The AIM companys drilling plans were given a major boost in late 2007 when it bagged mining and metals giant BHP Billiton as a farm-in partner. FOGLs chief executive Tim Bushell described the farm-in, which saw the Australian firm earn a 51 per cent interest in the licences by agreeing to pay 68 per cent of two exploration wells plus US$12.75 million in back costs, as a landmark deal.

The farm-in put some firepower behind FOGLs ambitions, providing much-needed finance, BHPs deepwater drilling expertise and access to rigs not to mention a vote of confidence in the prospectivity of these virgin waters. Since then the focus has been on readying the licences for that all-important first spud date. The companies have completed a comprehensive site survey over the four initial prospects to assess drilling hazards and select stable drilling sites. Waves and currents have been monitored to help with rig positioning and a geotechnical boring programme has also been completed. This data will also be used in the environmental impact assessment that the partners will submit to the authorities in the coming months.

FOGL, which at the end of 2008 had a cash balance of US$18.8 million, is now funded through a proportion of the near-term exploration costs but will need to seek additional financing options to cover the remainder of the drilling costs. This could be a second farm-out deal a 49 per cent stake is pretty hefty for a company of this size or the raising of new capital via an equity issue. A number of companies have approached FOGL about a potential farm-in and a data room has now been set up to formalize this process. The company reports that a number of parties have already scheduled visits to the data room: if the AIM firm could secure another farm-in deal, particularly from an industry heavyweight, then this would provide further reassurance about the prospectivity of the project.

Certainly BHP and FOGL believe they are sitting on a substantial resource, with just four prospects carrying combined most likely mean reserves of over eight billion barrels. It is the scale of this hoped-for resource that keeps investors interested in the Falklands story, despite its remote location, the high cost of drilling and the posturing from Argentina. Investors may, however, raise an eyebrow at FOGLs claim that the economics of these prospects remain robust at an oil price of US$25 a barrel: a 100 million barrel discovery would be viable at an oil price as low as $25 per barrel, according to FOGLs results statement. Much will depend on the scale of any discovery, the location of the find, the costs of drilling which with every month that passes is getting cheaper as the oil services industry feels the squeeze of lower oil prices and whether the find is oil or gas.

Investors are now keen for news of a rig contract and FOGLs plans to finance its share of the drilling costs. BHP Billiton is actively seeking a rig to spud the first well in late 2009 or early 2010. The run up to that first well, which if successful would have a transformational impact on the AIM firm, should put some momentum behind the share price as these undrilled waters are, at last, put to the test.

; ))

i used to read oilbarrel regularly but came to the opinion that the reports were not objective and were close to placements

Aye, but I have seen this share go up on such news and made a few quid !.. from here providing no negitive news we should see a SLOW tic up, still money to be made IMHO