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)

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Falklands weather is similar to West of Shetland

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

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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/

precisely, and even though DES has same, they haven't actually found anything yet ...... hence my caution by top-slicing (DES) on friday

The South basin has never been drilled and is totaly virgin,the big diffrence is in the North basin Which Desire hold and Rockhopper has been drilled

1. Only one basin has been drilled the North Falkland Basin.

2.There are six wells in total in an area half the size of Texas.

3.The wells were drilled back to back, with no time for thought in between.

4. All six wells tested the same play.

5.Five had shows one flowed live oil to surface, one flowed gas to surface from a deeper source.



http://www.falklands-oil.com/

Share trading frenzy feeds rumours over Rentokil bid
20.01.10



After yesterday's Cadbury excitement, it was a sluggish session on the stock market today and most attempts by dealers to drum up business met deaf ears but one stock in particular was making noise.

As the rumour mill churned, it was a sharp movement in Rentokil stock that excited the professional day traders.

Bid rumours around this stock aren't new, but they were persistent today. More than seven million shares changed hands in early trading alone more than twice what is normal for the stock.

That could just be because investors have realised that cold weather always leads to more business for pest control companies as rat infestations soar.

One dealer, who insisted he wasn't merely talking up his own book, reckoned there could be more to it.

That's big volume and the deals are by some savvy buyers, I'd keep a close eye on it, he said. The shares gained 3.5p to 120.1p.

Elsewhere, volumes were light and the phones weren't ringing. In such an environment, some people will believe almost anything.

There is going to be a war with Argentina, said one broker grimly.

That could be the only reason, he reckoned, for the sudden plunge in the Falklands Oil & Gas shares of which he is irredeemably long. Economic unrest. New Tory government, it's a matter of inevitability, he reckoned.

It is true that Argentina has just unveiled a new law that defines the Falkland Islands as part of its territory something the UK has said it firmly rejects and the dispute is largely to do with who owns natural resources.

While that's unlikely to lead to war, there are implications for some stocks. Falklands Oil and Gas has had an extraordinary run, up 30% so far this year. It hit a new high yesterday evening of 173p, but slumped today by 12p a tumble of 7% to 161p.

http://en.mercopress.com/2010/01/21/bhp-billiton-confirms-oil-exploration-commitment-in-falklands-waters
Thursday, January 21st 2010 - 4:12 am UTC

BHP Billiton confirms oil exploration commitment in Falklands waters
BHP Billiton Ltd., Australias biggest oil and gas producer, boosted its forecast for petroleum exploration spending by 33% because of an increase in drilling in the US Gulf of Mexico and offshore Australia.

The corporation also anticipated that exploration over the next several years will focus on drilling wells in the Gulf of Mexico, Malaysia, Australia, Canada, Colombia and the Falkland Islands, BHP said in the report.

BHP, also the worlds largest mining company, expects to spend 800 million USD on oil and gas exploration in the year ending June 30, 200 million USD more than previously projected, the Melbourne-based company said in a statement.

BHP is drilling wells in the Green Canyon area of the Gulf of Mexico, the Sandakan Basin southwest of the Philippines, the Gippsland Basin off the Victorian coast of Australia and Canadas Laurentian Basin, according to the release.

The corporation expects to drill 25 exploration and appraisal wells in the next three years, BHP said in a 2009 annual review posted on its Web site. During that period, we are positioned to begin the strongest exploration drilling program in the companys recent history, J. Michael Yeager, chief executive officer of BHP petroleum unit, wrote in the report.

Petroleum exploration spending for the year ended June 30, 2009 was 548 million USD, the company said in an annual report. Spending in the six months ending in December was 200 million.

BHP first-half petroleum production increased 17% to 79.6 million barrels of oil equivalent, bolstered by output gains at the Shenzi field in the Gulf of Mexico, the company said. Second-quarter output climbed 16% to 38.4 million barrels of oil equivalent.

The Australian corporation said last October it was on target for 10% annual growth in petroleum output in the year ending June 30. Annual increases of 10% through June 30, 2011 remain the companys goal.

BHP Billiton has an interest in 14 exploration and production licenses offshore the Falkland Islands in the South Atlantic. The Company signed contracts with Falkland Oil and Gas Limited (FOGL) for rights to explore and, if successful, eventually produce oil and gas from the East Falkland Basin located off the southern and eastern coast of the Falkland Islands.

BHP Billiton holds a 40 per cent interest in the acreage and is the designated operator. Falkland Oil and Gas Limited hold the remaining 60 percent interest. The production licenses cover approximately 18 million acres and are located in water depths ranging from approximately 656 to 6,570 feet (approximately 200 to 2,000 meters).

1.1 Document Objective
This document constitutes the Operational Addendum to the BHP Billiton Petroleum (Falklands)
Corporation Offshore Falkland Islands Exploration Drilling (Licences 028 and 015) Environmental
Impact Statement (EIS).
The EIS was submitted to the Falkland Islands Government (FIG) for approval in September 2009
and has since undergone a review process by The Scottish Association for Marine Science on
behalf of FIG. On submission of the EIS, BHP Billiton Petroleum (Falklands) Corporation (hereafter
refer to as BHPBP(F)C) committed to producing an EIS Operational Addendum to provide further
details on the drilling programme, which were unknown at the time the EIS was produced.
BHPBP(F)C has now finalised their drilling programme for the Toroa exploration well (Licence
Area PL015 refer to Figure 1.1) and contracted Diamond Offshores Ocean Guardian semisubmersible
drilling rig. Drilling operations are anticipated to commence in April 2010, at the
earliest, with the rig expected to be on location for a maximum of 30 to 40 days.

http://www.bloomberg.com/apps/news?pid=20601102&sid=anO.GXy1YCd4

Falkland Oil & Gas Plans to Drill Toroa Well in April, CEO Says

By Morwenna Coniam

Feb. 1 (Bloomberg) -- Falkland Oil & Gas Ltd., a U.K.-based explorer in the South Atlantic, plans to start drilling a well southeast of the Falkland Islands in April this year.

The company and partner BHP Billiton Ltd. expects to drill on the Toroa prospect using the Ocean Guardian rig, which they plan to lease from Desire Petroleum Plc, Chief Executive Officer Tim Bushell said in a Jan. 29 interview in London. Hopefully it will be confirmed in the next few weeks, Bushell said.

Toroa is in about 600 meters of water, the limit of that rig, Bushell said. If the first well succeeds, Falkland Oil may use the rig to drill a second, he said.

The explorer is also looking at ways of bringing a deep- water rig, designed for drilling in water of 1,000 meters or more, to the Falklands. Its considering sharing with another operator in the area, Bushell said. Other operators currently exploring the Falklands are Rockhopper Exploration Plc, Borders & Southern Petroleum Plc and Desire Petroleum.

Falkland fell 1.6 percent to close on Jan. 29 at 150.5 pence in Alternative Investment Market trading in London. The shares have more than doubled in the last year, valuing the company at 220 million pounds ($352 million).

Falkland Oil may drill on the Loligo prospect as soon as the fourth quarter of 2010, Bushell said. A rig would need to be arranged in the first half of the year, he said.

BHP Billiton is funding almost 70 percent of the costs for Falkland Oils first two wells, Bushnell said. Falkland Oil sold about 50 million pounds of shares in November 2009, enough to fund at least three wells, he said.

An average well in the Falklands for the company costs about $35 million, excluding transportation of the rig, Bushell said today.

The deep-water drilling market is still quite tight, but its better and the cost has come down quite a bit from six months ago, Bushell said.

To contact the reporter on this story: Morwenna Coniam in London at mconiam@bloomberg.net;

Last Updated: February 1, 2010 02:45 EST

http://www.proactiveinvestors.co.uk/companies/news/13283/falkland-oil-gas-rigged-for-slick-returns-13283.html

Saturday, February 13, 2010

Falkland Oil & Gas: Rigged for slick returns
by Markk Allen

Business Financial Newswire
Falkland Oil and Gas Ltd has secured the 'Ocean Guardian' rig for its first exploration well.

FOGL expects drilling within the first half of this year.

FOGL said it reached an agreement with Desire Petroleum to contract the rig which would drill the first ever exploration well in the East Falklands Basin on the Toroa prospect.

FOGL chief executive Tim Bushell said: "We are delighted to have secured the 'Ocean Guardian' for the drilling of our first ever exploration well, which will be a significant milestone for the company."

Whats the deal as there is no meat on that RNS to say how much it cost or did they give up a percentage of the tora prospect!!!

is that fresh news harry?? news of it arriving....yesterday would be relevant.

That was issued as follows (hot off the press!) :
RNS Number : 1229H
Falkland Oil and Gas Limited
15 February 2010, 07.00 hrs

Argentina has declared that it is taking control over all shipping between its coast and the Falklands, in effect awarding itself the power to blockade the disputed islands.

Control is not a blockade. Additionally, 'all shipping' therefore means Royal Navy vessels??? I don't think so!

I am all for diplomatic moves, but if the Argies continue to push and get away with it no matter how minor the effect that any control has on the Falklands, direct action first by sanctions and then by way of Naval Escorts must not be shied away from. If the Argies feel that they are having any effect, and are getting away with it they will increase any action, ibeit slowly.
The saying, 'Give them an inch' etc springs to mind.

Note... My confidence in any backing by the UN, if required, apart from week words is none existent.

FOGL Secures Rig Slot For Maiden Well In H1 2010





Armed with the proceeds of a 50 million placing, Falkland Oil & Gas Limited is preparing for a landmark well spud in the virgin waters of the East Falkland Basin. The AIM-quoted company this week confirmed it has agreed terms with fellow Falklands explorer Desire Petroleum to hire the Ocean Guardian rig for the drilling of its maiden well last this spring, confounding critics who said the company would be unlikely to see drillbit action until Q4 2010.
This is certainly good news for investors, who had been growing impatient about the hunt for a rig to drill up the companys huge acreage position in the waters to the south and east of the Falkland Islands. In this, FOGL was not alone as fellow explorers, such as Desire Petroleum and Rockhopper Exploration, were also stymied in their exploration ambitions by a tight rig market and a remote drill site, factors that made their drilling plans prohibitively expensive. All that began to change following the financial crisis of 2008 and the nosedive in the price of oil, which gradually softened the rig market and enabled Desire Petroleum to contract the Ocean Guardian semi-submersible for a firm four-well programme with an option for six additional well slots.

This was auspicious for Desire and Rockhopper, which at the back end of last year quickly agreed to share rig slots for their acreage in the North Falklands Basin, but not so positive for FOGL and its partner, natural resources giant BHP Billiton, which needed a deeper water-rated rig for their frontier licences to the south. Now, it seems, FOGL has managed to find a way to make the arrival of the Ocean Guardian work for it, thereby ensuring its backers get a taste of near-term drillbit action and can savour the buzz of this, the first drilling campaign in the Falklands for more than a decade.

FOGL plans to take the third slot in the Ocean Guardian drill programme. It intends to drill the Toroa prospect, which lies 140 km south of Stanley in waters about 600 metres deep. Although shallow compared to the rest of the FOGL acreage, this will still require some modifications to enable the Ocean Guardian to drill in this depth of water. It is thought the costs of making these changes plus the mobilization and drill costs will come to 12 million.
The price tag would be quickly forgotten in the event of success: Toroa is a large prospect in the Cretaceous Springhill play, with mean, gross, unrisked prospective resources of 1.7 billion barrels, ranging from a P90 case of 380 million barrels to a P10 estimate of 2.9 billion barrels. Once drilling starts, expected in the spring, investors wont have long to wait for results, with the well duration expected to be just over a month.

And there should be more to come later in the year as FOGL and BHP plan to contract a deepwater rig to meet their minimum two-well commitment. There are plenty of prospects to pick from, with the potential barrel on the FOGL acreage running into the billions, but waters are deeper: the prospects that have been site surveyed in readiness for drilling - Loligo, Nimrod and Endeavour - all lie in waters deeper than 1,000 metres. This share of the drilling programme is likely to cost the AIM company some 30 million. Fortunately Novembers placing has left the company well funded to absorb these costs and still meets its working capital needs through to the end of 2011.

Look like the race is really joined as they say.

Also although the bit of sabre rattling by the Argies is not good news, it has certainly bought the Falklands and their potential oil fields into the public eye. Haven't seen or heard the Falklands mentioned in the media so much since the end of the war 28 years ago.
Surely it must bring more investors in, especially those who look at riskier/potential high profit investments.

high risk for sure, as for high profit doubful....difficult condition above ground as well as below makes expencesive drilling, and then they need space ships to haul out the oil or settle for a home market...imo

BBC news just, say we only have one navel vessel patroling the area..

picking fluff out of it no doubt

http://news.bbc.co.uk/1/hi/business/8519807.stm

Interesting Times ! ; )