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)

•
Falklands weather is similar to West of Shetland

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

•
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/

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1185847528&feed=oilbarrel


Falkland Oil & Gas Limited, which is focused on the virgin waters to the south and east of the islands, confirmed it is in advanced discussions which may or may not lead to a major resources company farming in to certain of its assets.

This is big news. FOGL opened its data room well over a year ago but despite reports of interest from all the usual suspects, a deal has been slow to materialize (not least because of the vast amounts of data to digest by risk-averse oil majors). Shares in AIM-quoted FOGL shot up by 42 pence to 123 pence on news of the talks, taking its share price up 55 per cent week-on-week. The shares have since eased back to 114 pence but are still more than 30 pence higher than in early June. Investors will be keen for those advanced discussions to firm into a concrete deal that brings the prospect of drilling a very real step closer.

great performance in a shitty market ..... def still a hold if you have them, but surely not the right level at which to buy ...... though "the prospect of drilling a very real step closer" that is still a long way off having a commercial flow both in time and even finding same

Still a fair amount of buying at this level, I can not see it dropping back to 76/77 for a while unless some delays in news ! however should we see some positive news will not see 113/114 for a while, or at least long enough to make a few quid !!

Holding up well, and still some buying ! cynic you could have got in at 112 and could be in profit by now, with more to come with luck !!

have done very well with what i have, but thanks for the thought ...... have actually made a few bob in the last few days ducking in and out of Dow, but that's pretty scary ..... high volatility meant that you could almost choose your entry as long or short and make money so long as you were vigilant

Dow, Not for me ! I think I will stick with Fogl, for now !! :)

August 3, 2007, 12:01AM EST text size: TT


Why Oil Could Be Headed Even Higher
Strong global demand and tight supply will buoy prices for the foreseeable future, analysts say
by Moira Herbst


Oil prices have now been on a bull run for four years. This year alone, they are up nearly 30%and much of that rise has come in the past few weeks. The U.S. benchmark West Texas Intermediate crude hit an all-time high of $78.77 in intraday trading earlier this week, and closed at $76.86 a barrel on the New York Mercantile Exchange (NMX) on Aug. 2.

Still, it looks like oil prices could be headed even higher. Surging demand coupled with concerns about tight supplies are sending crude prices up, and there's no relief in sight on either side. In addition, speculators are now betting on further price spikes. "It looks like [oil] is getting ready to do a new leg of height," says Peter Beutel, president of the energy risk management firm Cameron Hanover. "There is market momentum, and the magic number now is $81. If we hit that, most people believe it'll head to $91 or higher." Beutel adds that some technical charts predict prices could hit $110 or $118 by the end of the year. He adds however that such a spike would take a "smoking gun" like Iran blockading the Strait of Hormuz, the key strategic gateway to the Middle East's oil supply.

Unlike in previous periods, the main driver in the recent price boost is not a war, a hurricane, or the machinations of OPEC, but rather robust global economic growth, say analysts. The U.S. economy has remained solid, despite jitters in the stock market. China and India are surging, while most of Europe is strong.

Even as high oil prices are a symptom of a strong economy, however, they could ultimately put the brakes on economic growth. The darker side of the growth issue is that the price spikes caused by competition for scarce supply could ultimately cause inflation, a recession, and increased geopolitical friction.

Supply Squeeze Ahead
A July 9 report by the Paris-based International Energy Agency (IEA) stated that global spare oil production capacity will shrink after 2010, and because global demand will outpace supply, a "supply crunch" is likely.

Global oil demand is forecast to expand by 2.2% per year on average, the IEA said, led by Asia and the Middle East. Chinese oil demand will reach almost 10 million barrels a day in 2012, and China will only produce 3.9 million barrels domestically. Global oil consumption is expected to reach 86 million barrels a day this year, 1.5 million barrels more than in 2006.

The report said that OPEC's supply cushion of unused capacity will rise until 2010, but then decline to "uncomfortably low levels." And while non-OPEC production growth in regions like Brazil and Russia will be strong, it won't produce enough to quench the thirst of developing and industrialized regions. Further, the biggest increases in non-OPEC production will come from nations that produce heavy oil, which is more expensive to extract and refine than light, sweet crude.

Countries vs. Companies
Other factors keeping oil prices high are the battle for control of existing oil fields between industry and national governments, and more costly penetration of nontraditional sources such as oil sands. The vast majority of world oil supplies are under the control of national governments, and oil companies are venturing into more far-flung areas like Canada's oil sands and offshore New Zealand in search of more product. Second-quarter profits were flat at ExxonMobil (XOM), which saw a 1% drop in production on an oil-equivalent basis (see BusinessWeek.com, 7/25/07, "ExxonMobil: Poised for a New High"). On July 26, Royal Dutch Shell (RDSA) announced oil and gas production fell 2% for the quarter, partly due to security problems that closed down fields in Nigeria.

Add it up and many analysts see a continued rise in prices. "I think we're headed toward $85 this year; it's oil's technical destiny," says Phil Flynn, an analyst with Alaron Trading in Chicago. "In the last few years, we've added an average of about $10 a year onto the price, and that could continue through the decade. It seems this bull cycle is a long-term trend, barring a change in economic fortunes."

He thinks that political tensionsbetween the countries that control oil supplies and those that need them to fuel their economiesare only going to grow in the years ahead. "We also have to look at geopolitical tension in this scramble," says Flynn. "We're already starting to see oil used as a political tool, and the power is likely to continue to shift away from consumers and toward producers."

i asked earlier but no response ...... i assume a farm-in or out, is merely a type of JV ..... Is that correct? ...... If so, why has the announcement had such a dramatic impact on FOLG for it is not as if they have actually made a commercial strike or similar?

Dynamix ...... i assume you would agree that the sp performance indicates a strong break out - i.e. a strong buy signal - notwithstanding that small stocks especially can and do get walloped from time to time

If they can get a Major (farm in/out certain aspects)to a company,(BHP Billiton , Baker Hughes, ExxonMobil, CanoccoPhillips,Devon Energy, just to name a few ?? only guessing !!
I think things/drilling will be quick (one thing to think about is weather out there)! Unexpected news always makes the sp move, As for the reasons for the possible farmin, My guess is the CSEM data combined with the recent infill 2D-seismic must have been quite good (2D Seismic - COMPLETED
Falkland Oil and Gas Limited (FOGL) reports that the 2D seismic survey was completed on
May 31st 2007. A total of 9950km were acquired during the survey. This dataset is now being processed by Fugro in the UK).

The CSEM presentation was going to be near Nov 2007 ?. Its now a Question of which assets (i.e. prospects) they are going to farmin to. Loligo?, Hersilia? etc + Fogl currently have A lot of prospects/leads which as far as I know are all on there web site. Thats how I see it, but I am sure someone more clued up on this type of thing could shed some more light on it !

Falkland Oil and Gas revealed it was in discussions that could lead to a major resources company farming in some of its assets. The group climbed 42p to 123p. Market makers said the announcement had boosted the sector. ??

sounds pretty thin logic for peeps to rush in to buy and thus psuh up sp by 50% or so!

Well I was lucky and got in @ 77 so happy to sit it out and see what happens ! I still remain hopefull !!

quite right too, but sure no hurry that i can see to jump on board

I still think one to keep an eye on (which I am sure u are) ! as I said with news of the right sort at a guess we could see test 180 again ? if NO news you may be able to jump in at 99 or less ? still with the Resources (At least ten have the potential each to hold more than 1 billion barrels. A further 20 prospects and leads have been identified each with possible reserves of between 500 million and 1 billion barrels) I think its a good punt ! edit - some more detailed prospects of area covered for FOGL can be seen @ falklands-oil.com in header !

Oil search escalates

August 02, 2007

THE world's biggest oil producers have boosted their search for oil and gas to one of the highest levels in two decades as prices yesterday neared record highs of more than $US78 a barrel.

The Organisation of the Petroleum Exporting Countries, the cartel that controls three-quarters of global oil reserves, said its members operated 336 oil rigs last year, an increase of 11.5 per cent since 2005, in response to strong demand from developing countries.

The cartel's annual statistical bulletin shows that member countries were operating the second-largest oil rig fleet since 1982, when oil prices hit an all-time high, in today's money, of about $US90 a barrel. US oil prices on Tuesday rose to $US78.23 a barrel, just below the $US78.40 nominal high.

The number of oil rigs in operation is seen as one of the best estimates of investment trends. Oil-producing countries rarely give out data on the amount of money they invest. OPEC is financing its capacity expansion on record revenues of $US650 billion ($767 billion) last year, up 22 per cent from 2005.

The International Energy Agency, the industrialised countries' energy watchdog, recently warned of an oil "supply crunch" within five years because of accelerating consumption growth and output falls.

Of Interest

Russia flags Arctic resource grab

Isabel Gorst, Moscow | August 04, 2007
RUSSIA has planted its tri-colour national flag on the seabed more than 4km beneath the North Pole, staking a symbolic claim to a vast Arctic territory believed to be rich in oil and minerals.

Russian explorers and scientists, carried in mini-submarines 4261m below the waves, became the first men to land on the seabed of the North Pole.

http://www.theaustralian.news.com.au/story/0,25197,22183784-36375,00.html

This just goes to show the race to secure Oil/gas resources is on . FOGL is nicely positioned to take advantage of the great opportunities that they HAVE !!Interesting times ahead !!

busy this morning !

terrific performance this morning, particularly as so many second-liners are getting a bit of a pasting - e.g. SOLA (yippee!) and TMC (boo hoo!)

I was in TMC from 179, sold @352, I am sure they will make a come back at some point ! But Fogl is going well, all we need is some news soon !! hoping!

PRO REFERENDUM MARCH AND RALLY
LONDON
SATURDAY 27TH OCTOBER

WWW.PRA.UK.COM

8% UP !!

ExxonMobil's stricken Fawley refinery spurs UK oil product demand
In this podcast Simon Thorne, managing editor for Platts EMEA oil speaks to Michelle Hart, Director, Platts web content, about plans to restart ExxonMobil's 326,000b/d Fawley refinery after a fire in its steam plant on July 25; and the impact the fire is having on demand for oil products into the UK.

http://www.platts.com/Oil/Resources/Podcasts/europe/index.xml