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/

i find it extraordinary - assuming the above is accurate - that a post should be deleted just because other bb members don't like its content ..... certainly the market late yesterday is coming to the conclusion that good news is not on the cards

RKH & DES oil strike RNS were issued at approx midday or after, so I assume the FOGL one will follow the same pattern? Would have liked a RNS prior to opening on monday in order to catch the bounce, but historically that hasn't happened.

It's somewhat reassuring to look at slide 9 of the presentation at the FOGL presentation at the AGM in May - see their web site. "Toroa is a prospect within the Springhill Sandstone Play, which is the proven play in the Argentine Magallanes Basin to the west. The Toroa prospect is supported by a seismic amplitude anomaly and a positive CSEM response. Oil shows were encountered in the site survey core over the prospect. Toroa has a potential mean reserves of: 1.7 billion barrels (unrisked) - P90: 380 mbbls, P10: 2.9 billion bbls."

So perhaps the delay only signifies weather and equipment problems or drilling deeper. We will soon know.

carsie68 i hope you dont have to much money in FOGL as the chances of them hitting oil is only 15%

Its a wild stab in a basin which in unproven and was one of the few targets the OG was able to drill and for FOGL to for fill there commitment to drill a hole in one of there prospects in 2010.

I dont hold any shares in FOGL or BOR as far to risky and looking forward to RKH getting the rig back to drill Ernest and hopefully the flow test on Ernest and then on to Sea Lion.

Should be an interesting week for all holders of Falkland shares but glad am not in this one even worse you could hold BOR which dont even have there EIS passed as it was Noted at last meeting.not good at all.

i'm afraid rather as expected
The well did not encounter any reservoired hydrocarbons and will now be plugged and abandoned.

Toroa only had a 15% chance of success and its absolutely no surprise for a duster for FOGL.

http://www.investegate.co.uk/Article.aspx?id=201007120700201656P

Luckily the South Falklands is nothing to do with the North in terms of the oil and gas production and potential, and now the focus goes to RKH, the only one so far to find oil and one that is still vastly undervalued IMO and offers great upside.

My strategy of adding only to RKH and holding only RKH is paying solid dividends. Buy the others BUT only when they have found oil, and if not then keep adding RKH, more and more while its still so undervalued and while Sea Lion still has so much upside potential on the 242M barrels P50.

Well, this was expected and obvious from the beginning of last week but some expert thinks I'm de-ramping.

Ouch !.....for those in.....

FKL will also take a severe battering today, given their holding of FOGL.

Expect there to be rampant panic selling of FOGL and FKL

And Borders.....and perhaps a bit of a drop for the other two...

BOR dont even have EIS passed.......come on the Rock!!!!

80p now... it's is a good short.

There's not a whiff of hydrocarbons at all... not even a trace.



12 July 2010

Falkland Oil and Gas Limited

("FOGL" or "the Company")

Results of the Toroa exploration well

FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, confirms that the Toroa F61/5-1 exploration well has been drilled to a total depth of 2476 metres and logging operations have now been completed.

The well did not encounter any reservoired hydrocarbons and will now be plugged and abandoned.

Further detailed evaluation of all data and information gained from this well will now be carried out. An update will be provided once this work has been completed.



Tim Bushell, Chief Executive of FOGL, commented:

"Whilst the results of the Toroa well are disappointing, it has to be remembered that this is the first well in a previously undrilled frontier basin. We believe that these results have helped to reduce some of the key risks of the plays in the deepwater areas of our licences. In that respect the well is certainly encouraging for further exploration and we look forward to continuing our exploration programme once a suitable deepwater rig has been secured."

Missed out @70p..

bought some more fkl, expect a bounce on this one.

Mitzy, no hurry... will be 50p end of week. Even at a quid now, FOGL looks hideous as it has no clue whether it has any hydrocarbon at all.

Balerboy.....that's risky as this could go to 50p like hyleo98 says...where is the bottom here ?....

Down 50%.

when is the next drill for FOGL?

It will be if BOR get a rig i think they may share that one as FOGL have enough money for a possible 2 drills at tops.

Buttttt and a big But is BOR have not got EIS approved and untill that time they cant drill and have not got a rig or drill ship so it could be years away.

As said FOGL was a stab in the dark...stick to the NFB if you want to make money its now a basin which is proven to hold oil.