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/

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

Here at MoneyWeek weve been alerting our readers to Peak Oil - the theory that well soon be pumping the maximum amount of oil out of the earth - for a long time. Even wild optimists accept that global oil production will peak, and then start to drop off, within the next 20 years. But the situation regarding the UK is far more serious. In the North Sea, Peak Oil is no longer a theory... its a reality.

In 2007 the UK will become a net importer of both oil and gas a status from which itll never recover. Thats bad news for our economy in an age of rocketing oil prices. Its even worse for our government which has relied heavily on bumper oil taxes...

http://info.moneyweek.com/special_report5a.php?bbcam=adwds&bbkid=oil+shares&x=&jtid=2037542&UID=JF+-+Google

Aug, 2007


You may find it hard to believe that just three years ago
Deutsche Bank analysts were forecasting a 2010 oil price
of $24 a barrel. They were living in cloud cuckoo land.
The spike in oil prices that were way ahead of analysts
forecasts ensured that the oil majors consistently beat
expectations in their quarterly results for years. This
lead to a rerating of the sector - and a nice stream of
profits for investors. I believe the same thing is about
to happen again.

Lets take the example of Deutsche Bank. So, after
wracking their brains very vigorously, three years ago
analysts at Deutsche decided that $24 a barrel was too
low and raised their estimate to $27 a barrel... then in
February 2005 Deutsche raised its forecast to $32 a
barrel... then to $35 in July 2005... and to $40 in
September 2005. It stayed at that level until June
2006, when the analysts upped their forecasts to a
whopping $45 a barrel...

This was all so out of synch with reality that clued-in
investors sat on an integrated oil gravy train as the
sector consistently outperformed analysts expectations.
Not surprising really. However, I believe that analysts
consensus forecasts are still too low and the opportunity
has arisen yet again to grab some integrated oil gravy.
Oil futures set another record high on Monday as US
oil inventory data looked set to show another fall. But
I believe that this is just the first of many tests of
new highs.

The prospect of $100 dollars a barrel oil is very real -
and the downside to the oil price is limited indeed. I
think oil will hit $100 a barrel at the start of next
year possibly sooner if a major news event intervenes.
This is a licence for oil majors to print money and you
should grab some of that too.

Thursday, August 9, 2007 (Singapore):

Oil prices rose on Thursday in Asia after a US government report showed big declines in crude and gasoline stockpiles and an unexpected drop in refinery activity.

Oil and gasoline futures in the previous session jumped immediately after the report's release, too, but finally settled lower after a day of up and down trade.

Light, sweet crude for September delivery rose 15 cents to $72.30 a barrel in Asian electronic trading on the New York Mercantile Exchange. The contract fell 27 cents to settle at $72.15 a barrel Wednesday.

Oil inventories

Despite the decline in refinery activity, crude oil inventories fell 4.1 million barrels, more than double the 2 million barrel decline the analysts had expected.

Gasoline inventories fell 1.7 million barrels, when they had expected a 1 million barrel increase.

"Distillate inventories, which include heating oil and diesel fuel, rose by 1 million barrels last week," the EIA said. Expectations had been for a 1.8 million-barrel gain.

Analysts said that speculators who helped to push the crude oil futures to record levels last week continue to sell and take their profits and are wary of buying more futures contracts after the steep fall that began last Friday.

September Brent crude rose 11 cents to $71.10 a barrel on the ICE futures exchange in London. Heating oil futures rose 0.32 cent to $1.97 a gallon (3.8 litres), while gasoline prices added 0.43 cent to $1.942 a gallon. Natural gas prices rose 6.2 cents to $6.282 per 1,000 cubic feet.


http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=39952&template=&cache=8/9/2007%2011:14:15%20AM

(Russia)



Now that Russian explorers have dived to the bottom of the Arctic Ocean and planted a Russian flag directly under the North Pole, there is little else that can be done to extract any hydrocarbons that could be found beneath the seabed. It was a good publicity stunt but there is little international bickering about the claim only sour grapes. Perhaps a barber pole and a few other treaty nation flags should make the wine more drinkable. !!!


Apparently this was all based on a misunderstanding when Bush told Putin to stick his flag where the sun don't shine. : )

Progress report Wednesday 8 August 2007
2D Seismic (survey completed)
The seismic processing continues at Fugro. About 30% of this dataset has now been received
at FOGL and interpretation is underway. We expect the processing of the survey to
continue into early September.
Controlled Source Electromagnetic (CSEM)
2 new lines have now been completed and the data has been sent to OHM in Aberdeen for
processing. Acquisition is progressing on the final part of the programme which will be
completed in August. Processing of the new data is expected to take 2-3 months to
complete.

Does this update suggest discussions with a oil major will not reach a conclusion before October/November?

It would be interesting to know if the 'Oil major' gets the results of the data before we do. Sorry to be cynical, but that data is surely the crucial trigger for decision making.

All Going to plan !! (post 73)

Well I bought on the rumour and sold at129p. May return in october if this turns out to have a real chance of actually happening.

It may hold around the 112 - , even so with good news we may test the 180 mark again No point in selling for me, I remain hopefull looking at the potential & reserves so holding tight !!

A alot of shares down today, Fogl down 7%, Cynic jumping on board soon ? :)

ANALYSIS:

Wednesday, 08 August 2007: Unlike the normal pattern, declining inventories of crude and gasoline in the United States have helped to lower the price of crude today. Financial constraints have had a knock-on affect on demand.

Thursday, 09 August 2007: Now we must pick up the pieces. With economic fears running rampant today investors are slowing down their participation in stock markets all over the world. Fortunately this did not affect the local exploration stocks as heavily as other share prices. While FOGL was down 7.00 and PRE 0.25, other stocks were unchanged or up.

With the US economy slow down, people are going to cut unnecessary vehicle use and opt for public transport or alternative fuels. This will ease the demand for gasoline in the United states and has helped to lower the price of crude today. Crude prices still remain artificially high.

not jumping anywhere ... not even out of the window, though like most have not enjoyed last couple of days much

Sorry dont understand what this has to do with FOGL which is still probably at best 2/3 years away from spudding even if they can find a oil major to finance drilling. Have made a good profit from recent price spike and am likely to return but only when the sp declines to 70/80p.

Not good !! Fogl held up well considering the market ! a lot down today inc TMC, RAB,OXS and many more (a general view of the market, post 95, few more spikes to come !!)

TMC i also have - WAS about 85% of norm ...... other two have never been of interest.

Dow now recovering, rather as expected ...... but will it be able to get into and hold positive at close? ..... all hairy-scary

Of Interest:

Oil stumbles, but prices may rule firm
12 Aug, 2007, 0416 hrs IST,

LONDON/NEW YORK: Oil slipped on Friday and base metals trimmed large early losses after the US Federal Reserve pumped liquidity into money markets to calm fears of a credit crisis. Gold jumped 2% in futures and spot trade. Coffee fell in London but rose in New York, while cocoa ended higher on both markets. Grains saw volatile trade as investors took profit on a recent spike in prices owing to harsh crop weather in Europe and the United States.

The US Federal Reserve and European Central Bank pumped money into the banking system for a second day on Friday to ward off a credit crisis. Escalating problems in the high-risk US subprime mortgages sector have squeezed global liquidity and threatened to trigger a seizure in the financial system and damage world growth.

Fund managers and analysts say commodity market reaction to the turmoil has been relatively subdued because the overall picture of strong demand from fast-growing emerging market countries hasnt changed.

Any slowdown in global economic growth will clearly be reflected in metal and oil prices, but the long-term picture is still good, said Edward Hands, senior portfolio manager at Commerzbank Alternative Investments. Fundamentally we are moving from a society of wants to a society of needs and that is bullish for commodities.

US crude oil ended 12 cents down at $71.47 a barrel after losing almost $1.50, or 2%, during the session. Prices have fallen about 10% since a record high of $78.77 a barrel last week. Dealers, however, said that supply disruptions, falling US stockpiles of crude and relatively inelastic demand for oil could hold prices and possibly push them to new highs if political tensions in the Middle East rise.US-based commodity indexes took a sharp hit in early market hours.

Some positive buying today , Some of the potential acquirers of the region according to the Financial Times article include BHP Billiton, Royal Dutch Shell, Hydro and ConocoPhillips. !!! :) ALSO ....

Joint Operators Meeting in October
Representatives from all five operators of offshore licences will be visiting the Islands in early October. Meetings to be arranged during the visit will enable operators to discuss issues related to offshore exploration collectively, with FIG officials and the private sector. A public meeting is planned where operators can answer questions about exploration and the oil industry in general.