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/

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

almost any oily is likely to be heading north at the moment - there are exceptions, but would not like to mention RKH! - but i still question whether this is the stock and/or geogapahical location in which to make a decent turn.

cynic


"Emerald Energy (EEN:LSE) set a new 52-week high during today's trading session when it reached 447.25. Over this period, the share price is up 73.63%."


http://markets.ft.com/ft/tearsheets/performance.asp?s=UK%3AEEN

edit

quite right .... fantastic performance ... have posted to the EEN thread!

From FOGL webesite

Future activities: drilling programme
Minimum 2 well exploration programme
committed to by BHP Billiton
Additional exploration &/or appraisal wells
under consideration
Timing dependent on rig availability
Deep water rig market improving slightly
Service & material costs falling
BHPB actively seeking a rig
Rig options:
Direct contract with rig owner very few available
Sub-let on an existing contract gaps are appearing
Current expectation is drilling in late 2009 or early 2010

Economics
Excellent fiscal terms corporation tax 26%, Royalty 9%
Positive economics with a post tax NPV10 of $8/bbl*
A 100mmbbl field is about the minimum fieldsize and would be
economic down to an oil price of c. $25/bbl
Political stability with strong support from FI & UK Governments
Excellent logistics: deep water harbours & international airport
Access to a range of oil and gas markets
* Based on $50/bbl rising to $80/bbl by 2014 (RPS economic analysis for FOGL)

http://www.fogl.com/investor/documents/OilBarrel1April2009_000.pdf

Feed back from rpoodle from iii on Fogl AGM
OK, this could be long, but no apologies for that.
Initial impressions were that the room was around two-thirds full, and one guy came in late and fell asleep at the back. The board, pleasingly, seemed competent, with Bushell and the relatively bashful Colin More particularly impressing.

The passage of the resolutions was not plain sailing! A fella at the front launched a full-blooded attack on both Bushells pay (he claimed 640,000, but Bushell later said that its a hell of a lot lower than that) and, more impressively, on the decision to tinker with the options package (delaying it by two years, because theyd failed to meet it). Long back and forth with David Hudd (deputy chairman, who somewhat disgracefully ducked out before the end of the event), and who argued that if the options had been left to expire, theyd have had to draw up new ones, and at a lower price. Bushell later said his pay was in line with the industry average, and they take independent advice.
Regarding Resolution 5, the creation of 50m more shares, Liddell argued that they need them for capital headroom. Theyre not necessarily gonna use them.

The four prospects were chosen with BHP, who delayed things somewhat as they wanted to do a lot of their own work on the data. Ended up taking 6 months before they could actually get talking about drilling.
They mentioned the drilling in the Malvinas basin (which involves Repsol and a subsidiary of BP), but added that the rig will not be used by them.
The four prospects on which site surveys were carried out are: Loligo, Toroa, Nimrod and Endeavour (the latter is similar to Argentine finds). FOGL appear particularly keen on Nimrod, even more so than Loligo.
They then came out with some rather fantastical share price possibilities on hitting oil. They claim that a 500m barrel find would be worth 14/share, and a 3.5bn find 100/share! (NPV-10, $8/barrel). The minimum affordable field in their mind is 100m barrels at $25/barrel

Colin More then spoke about the site surveys, and mentioned that the decision to do a 200 metre boring programme was controversial. Seems BHP demanded it to avoid risks, but FOGL less convinced. The EIA he said is a bigger project than those taking place in the north, as the latter builds on the work in the 1990s. Will take 3-4 months before approval from date of submission (later stated at July, so approval around October-November).

Back to Bushell, who spoke about logistics planning, which includes ordering long-lead items (LLI). LLI can take 6 months to arrive, and, in a positive announcement, he said that BHP have included the LLIs in their budget for June. He also spoke about having to establish a base on the Falklands, and apparently BHP prefer the military port at Mere (?). Also talking with military about using Mt Pleasant airfield. BHP sent a logistics team in October, sent another recently, and will sending another team shortly. BHP seem committed.


Various stuff about the rig, but not much that was new. Minimum 2-well campaign, but pondering doing some other wells. Did 4 site surveys on Loligo (which is the size of greater London!!).
Bushell could give no firm date for the rig, but said austral summer is preferred, but not essential.
Nimrod and Loligo would take around 30 days to drill, Endeavour about 40-45 days. In comparison, some of the holes in Brazil are taking 8-9 months!!
Anyhow, on to a bit more interesting stuff:
Still heavy demand for deepwater rigs, but rates beginning to fall (average is around $550,000 or so per day) and BHP says availability improving. Sublet most likely, with Brazil singled out. He talked at length about the potential for a rig-swap, with a BHP rig in the Gulf of Mexico lent in return for a rig in Brazil. A rig from Brazil would cost around $20m for mob and demand; from GofM would cost around $70m
This is a big deal, because it basically excludes everyone else. Bushell went out of his way to dispel rumours about a rig share, and said one would only happen if there were time left over after FOGLs area is drilled. BHP have been very clear they will not do a rig swap with GofM for the benefit of other Falkland oilies. Borders & Southern he said are best suited to share the rig, but virtually went out of his way towards the end of the presentation to exclude Rockhopper and Desire. Sharing is a nice to have, but BHP seem to be concentrating on number one, so to speak.
Regarding timings, I fear were going backwards. He said it would be fortunate if they drilled this year, Q1 2010 was still possible, but maybe later.
One added point on drilling that came out of the questions at the end. Good news is that FOGL are not in a chicken and egg situation regarding financing the rig. They can contract the rig, even if all the money is not in place. Under the farm-in deal, BHP will put up FOGLs collateral if required, and FOGL have 4 months to pay them back (which is why they need all those shares to hand). A rig could be contracted before the company is drill ready, but did not sound too likely, and would have to leve breathing space for after the commissioning date for the EIA.

Regarding funding, there were a few more interesting things. They are primarily focused on farming out right now, given the tightness of the capital market. Stellar Energy Advisers have been appointed to assist in the farm-in. Looking to farm out between 5-15%, which pretty much rules out a big major (though he claimed later that the biggies are still keeping an eye on FOGL). Quite a bit of interest thus far. I spoke afterwards with Liddell and More on this. Liddell said something like 8-12 companies have now been through the dataroom, with more to come (bur fewer than last time), but in truth he was not certain. Colin More was more cagey on numbers, but mentioned that hes off to Texas next week.
Anyhow, expect news later this year on the farm-in, but nothing soon.

Finally, the operators meeting came up right at the end. Bushell said there is limited room for co-operation. BHP is not looking at collective sharing, and said the guys in the north are looking to do their own thing anyway. In reality, he said there had not been a great deal to talk about.

Which pretty much covers the bulk of it. In summary, I felt encouraged on BHPs commitment to the programme, and moderately on the farm-in, but were still not close to getting a rig. It was ever thus..

Robust prospect economics
Excellent fiscal terms corporation tax 26%, Royalty 9%
Positive economics with a post tax NPV10 of $8/bbl*
A 500 Million barrel discovery could be worth: ~14 per share
A 3.5 Billion barrel discovery find could be worth: ~100 per share
A 100mmbbl field is about the minimum fieldsize and would be
economic down to an oil price of c. $25/bbl



http://www.fogl.com/investor/documents/AGMPresentationMay200913.05.09.pdf

Still Looking Good ! ; )

Anybody got any thoughts about a target price?

Markymar.

The military port you refer to ('Mere') is Mare Harbour, built after the Falklands' Conflict to ease logisitcs into the Island(s). The port at Stanley does not have a particualrly good infrastructure although has improved over the years due to the Cruise ship trade. Mare Harbour has two berths one of which is a RoRo.

pth

Aye, A picture of Mere Harbour (East Cove)

http://moneyam.uk-wire.com/cgi-bin/articles/200906160700119386T.html

Falkland Islands Holdings plc

('FIH' or 'The Group')

Final Results for the year ended 31 March 2009

Falkland Oil and Gas

The Group has retained its holding of 15 million shares in Falkland Oil and Gas Limited (FOGL) which at the year end had a market value of 10.9 million (2008: 18.5 million). Further good progress was made towards drilling with the remaining site survey data collection work completed. This had three components: a site survey programme covering the four top ranked prospects, a geotechnical boring programme and the deployment of wave and current meters. The objective is to be technically ready to drill by the end of the third quarter of 2009. Thereafter, the timing of drilling is dependent upon rig availability.

Investor confidence in FOGL's prospects was confirmed in May 2009 when an institutional placing of 10.4 million new shares raised 7.2 million after expenses to cover costs in the pre drilling phase. This issue of new shares reduced our shareholding to 14.6%.

http://sharecrazy.com/beta/board_talk/2092/board-talk-featuring-tim-bushell-ceo-of-falkland-oil-and-gas-limited

Sandra Spencer is joined by Tim Bushell, CEO of Falkland Oil and Gas Limited (AIM:FOGL).

Sudden bout of buying is there some news out there I've not seen

MAY BE positive news ahead ?

How many times have we heard that over the years? Keep praying!