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/

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!

Things are certainly moving this morning!

Its all because of Des.

Desire Petroleum plc (AIMES) the exploration company focusing on the North Falkland Basin, is pleased to announce that it has exchanged a letter of intent with Diamond Offshore Drilling (UK) Ltd for the drilling unit the Ocean Guardian to undertake a four well minimum drilling campaign in the North Falkland Basin.

The Ocean Guardian is currently in the North Sea and following a programme of shipyard work will mobilise in November 2009. Projected arrival in Falkland waters is early February 2010. Desire has options to drill a further four wells for itself and or its partners. Further details will be announced post contract completion which is subject to various approvals, including Desire Board, Partner and regulatory approvals.

Now who will be next for a rig. Fogl would be nice.

Great news as they plough North - 130p!

FOGL is out performing DES on the day so far!

Take profit & wait for a drop now, imo.

14 Aug post !! ; ))

Share cast

The interesting bit about Falkland Island Holdings is its 15% shareholding in Falklands Oil and Gas (FOGL). Investors may look at the conglomerate instead of a direct investment in FOGL because it has a diversified income stream, an 8p dividend and doesn't rely on a big find. If there is one, however, shares will soar. Although yesterday's gain might have taken out much of the near-term upside, its prospects look good, so buy says the Independent.

Yet more movement from one of the Falkland Oil Crew Companies.

Rockhopper Exploration, the North Falkland Basin oil and gas explorer, is pleased to announce that it has agreed terms with a third party energy company for a farm-in to one of the Company's licences, through a contribution, at a promote, to the costs of drilling one well on the licence and to certain back costs. A Letter of Intent to farm in has been signed and discussions continue to progress the agreement this into a fully binding joint venture.

Now I wonder if this will end up like the bus stop syndrome. You seem to wait for ages for one to come along, then what happens, three or more come at once.

As reiterated in todays press, the oil majors such as Shell, BP, Exxon and the like are still desperate to boost their inventories, mainly due to the fact of low oil reserves on their books, but also due to intentionally over estimating for the last fews years in order to enhance their share prices.
As the Falkland field possiblefinds are being talked about in the same volume category as the BP and Chevron recent finds in Mexico how long will it be before the minnows such as Des/Fogl/Rock and the like are taken over.
IMHO the question won't be so much if as when. Will they wait till oil is pumping in sufficient quantities and risk loosing out to a competitor that jumps first or chance getting in on the ground, IE now.
Both strategy are a risk but which once will they take.

http://www.falklandnews.com/public/story.cfm?get=5504&source=3

A tight rig market could delay Falklands drilling in 2010
September 28, 2009
by J. Brock (FINN)

Could a tight rig market delay Falklands drilling programme in 2010?

By J. Brock (FINN)

A buzz word rig - permeates the Falklands exploration industry but it would be a tight rig market that could postpone Falklands exploratory drilling in the South and East Falkland Basins.

Richard Liddell, Chairman of FOGL, has conformed that a rig has not been sourced for drilling in the deeper prospects that the company has in the area. He said, "Our partner, BHP Billiton, continues to seek a suitable drilling rig for a drilling programme currently scheduled for 2010, in line with our previous guidance. With the necessary preparatory work completed and funds available to secure long lead drilling equipment, we are well placed to move into the next exciting phase of exploration."

Were almost ready and everythings there but the rig. One of the final hurdles an environmental impact assessment is due to be submitted to the next meeting of Executive Council, scheduled to take place in early October. Once this is approved the South and East Falklands Basins are that much closer to the all important drilling round.


The rig market has been tight for several years now since the price of crude nearly hit $150.00 per barrel in 2008. Exploration companies signed contracts for extended periods of time and even kept exploration rigs for production. A few rigs have come on to the market but they are not suitable for the prospects to be drilled to the south and east of the Falklands where water depths are more than 1,000 Metres deeper than they are in the North Falklands Basin.


The best option is to get a rig or drill ship that is fit for purpose. BHP Billiton will make sure this is the case. Newer rigs on the market can do the work but it is an expensive option with prices of $500,000.00 to 750,000.00 per day (approximately) for drill ships and newer adapted rigs.


Fewer rigs have been constructed in the past few years. Those that were constructed were snapped up by exploration companies while still being constructed.

It is expected that the right rig or drill ship will be in operation in FOGLs prospects in 2010 but in this business delays sometimes long ones happen regularly.

Our ears to the ground. Watch this space.

Both wells will be Plugged and Abandoned regardless of what they find.



http://energy.rpsgroup.com/Public/bhpbillitonEIS/

Page 16:

Of the two wells proposed by BHPBP(F)C within the East Falklands Basin, the first well will test for oil in two target levels at the Northern Tranche Late Cretaceous Loligo Prospect. The second well will test for oil and gas in two target levels at the Southern Tranche Early Cretaceous Toroa Prospect.

It is likely that the proposed exploration wells will be drilled using a semi-submersible drilling rig,with an 8 to 12 line mooring anchor pattern. Start dates for the drilling of the wells will be determined when a suitable rig has been secured.

Operations at the well sites are expected to last up to 75 days and. water-based muds (WBM) will be used to drill the wells.

Following drilling, the wells will be logged and evaluated. Following evaluation, the wells will be plugged and abandoned regardless of the results of the evaluation.

FOGL and DES are partners in at least some fields, yet the above would seem to contradict the posts on DES of +/-15th October, wherein DES had apprently already obtained rigs.

these stocks are a markymar speciality, so no doubt he will elucidate.

as it stands, one could expect FOGL to be seriously walloped (15/20p?) on monday (general market sentiment apart), dragging DES and others in its wake