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/

there is none as yet and sp all over the place - topped back up at 243, but still quite modest stake

Sp peaked at 285p. Someone knows something in advance of us mere mortals!
RKH & DES up 6%+ in sympathy.

not so ..... highest trade was 267 and currently about 245

Just rejoice, I say again rejoice!
Thatcher (on the S. Georgia recovery '82)

This has got to rub off on the others......DES +9% RKH +8.5%

nothing to cheer about until "the story" whatever that may be is confirmed and verified

sp coming down now. Sell and take profit.

240p to sell now

"FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, notes the recent share price movement and can confirm it knows of no reason for the price rise.

FOGL announced on 1 June 2010 that the Toroa F61/5-1 exploration well had spudded on Monday 31May. The Toroa prospect is located in Licence PL15, in which FOGL has a 49% interest.

The well is being drilled to an estimated target depth of 2,700 metres. Drilling operations were expected to take approximately 35 days. Some delays have been experienced due to bad weather at the beginning of drilling operations, however, FOGL expects to announce the preliminary results of the Toroa F61/5-1 well in the week commencing 5 July 2010. "

as with DES, premature movement is unlikely to be without foundation, though it is far from impossible, and volume is already 3x norm

Well, some quick money to be made in the last hour or so for those who were glued to their screens! Amazing though how the market always seems to know something before the RNS is issued.

I have a token foothold in this...no more....could go either way....

Nice to be right for a change.

I posted this on iii at 0830 hrs this morning, in reply to another post.

Whilst I agree with Oil Brat re 'The trades this week should tell you what the deal is'.
The main word to take note of is 'should'.
Just remember what happened to RKH just prior to the drilling test results, although the results were 'very good/even better than first muted' the sp shot down dramatically due to a false rumor being circulated. Share manipulation at it's worse.
So if the sp in Fogl's case shoots dramatically down, is that another RKH case, or if they shoot up could it be someone is looking to push a false price in order to sell.

Until we 'officially know' the results, I for one will sit tight.

Nice to be right, doesn't happen often.
This stinks of more market manipulation.

are you right that you bought, or right that you didn't, or are you right as in politico-speak?

218p to sell now... this is just some rumours

you could be right, but my inclination is to say you are wrong, for logic posted earlier

Worryingly this is following the "DES" pattern - casing rumours and price spikes - what will happen next ? A Sunday paper "its no good" story followed by bad news.

Sometimes these spikes are all about big boys selling out ahead of bad news....... so be very very careful here !!!!!!

This might just be rumour mongering ahead of bad news, therefore allowing the big boys to dump some volume into small PI's buying on "exciting rumours".

http://www.smh.com.au/business/share-price-takes-off-for-bhps-partner-in-falklands-well-20100629-zj7l.html

Share price takes off for BHP's partner in Falklands well

Wonder if RF got any of these at a cheap price,or were they over priced at 50p? He seems to have slid off lately.

Question is whether FOGL is really worth (Shares Issued 146.25m) Market Cap 356m at the moment?

Just sold my holding.....possibly a mistake but banked my little lot...for the moment......just guesswork as to whether these will come right....problem is : no follow up to this well and in the event of a hydrocarbon no show : ouch !......so banked another small profit today.