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It is very interesting, and as I have been saying for some time - FOGL has been and still is the perfect buy at the moment. Minimal downside and loaded with massive upside for Q3.

Here is a chart of FOGL versus the other FI explorers last couple of months.





And here is the chart of FOGL versus a range of other oil and gas stocks last couple of months.




When you look at the figures some people have lost a fortune in the last couple of months because they are in love with other stocks and holding them for no valid reason except blind love and hope. When markets wobble sell the weak and buy the strong - its very simple. The strong will go up more first, the weak will only rise again later.

B***s

FOGL a chosen stock a couple of times...........

http://issuu.com/spreadbetmagazine/docs/spreadbet-magazine-v6_generic?mode=window&pageNumber=1

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FOGL a top pick, along with TLW, OPHR, CHAR and BLVN for Jefferies.

TRP is not a top pick..........

http://ca.reuters.com/article/businessNews/idCABRE85O0FL20120625

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http://in.reuters.com/article/2012/06/25/towerresources-research-jefferies-idINL3E8HP2EC20120625

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The underlying fact is that RKH, the only company down there to actually find out can't even get a farm in agreement. Mark my words, 'how ever good the return on ivestments are, they won't be as good as what Proselenes is making them out to be'

Farm out done. Always said FOGL is the most attractive of all companies down there and therefore would be first to farm out, and so they are..........

http://www.investegate.co.uk/Article.aspx?id=201206260700181122G

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but will that actually do much to inspire sp? ..... no doubt an initial knee-jerk, but then what?

The long awaited farm in has arrived and 'still' people hint they are not happy (they are really, but we all know that).
And EDF are a French company via the EDF Group, so the French are on board, so another country re Argentina V the UK (if it comes to that, but it won't).
Good news, whichever way you look at it!

i didn't say i wasn't happy; i just wonder whether this is genuinely good news - apart from cash injection, though presumably for loss of equity

Hi Cynic,

I did jump the gun a bit with the 'not happy' comment, but you must admit, you do live up to your name.
Not that, that is a bad thing.
Cynicism is always good to keep things on a sensible, level keel.
But to answer your questions, I feel the deal is very good for Fogl and EDF, as the loss of equity V shared risk, plus cash injections = probable reward is excellent.

I think it may be because I seem to remember that he sold most of his FOGL holding the other day, which is very unlucky timing. I wasn't even aware that they were looking for a farm in partner, but have kept hold of my FOGL stock, which is also just luck.

As expected, straight back into auction.

I think this shows FOGL is not very confident on its own.

yes i did, but i never do "sour grapes" ..... for all that, initial reaction is very muted indeed, so perhaps i'm not so silly

http://www.proactiveinvestors.co.uk/companies/news/44627/falkland-oil-gas-reveals-tie-up-with-french-utility-edf--44627.html

Falkland Oil & Gas reveals tie-up with French utility EDF

8:23 am FOGL says it expects to receive the Leiv Eiriksson rig in July, once fellow Falkland explorer Borders & Southern has completed the Stebbing well FOGL says it expects to receive the Leiv Eiriksson rig in July, once fellow Falkland explorer Borders & Southern has completed the Stebbing well

AIM quoted Falkland Oil & Gas (LON:FOGL) today confirmed that it has sealed a farm-out deal ahead of its upcoming drill programme.

The deal sees French utility firm EDF enter the Falklands.

Via Edison International – a company in which it owns a controlling stake – EDF will pay FOGL’s back-costs in the region of US$50 million and it will pay its own share of the costs for the upcoming drill programme. A US$3 million option fee had already been paid to FOGL.

Edison will own a 12.5 per cent stake in FOGL’s southern licences, which hosts six prospects, and it will own 25 per cent of the northern area licences, where there are five prospects.

Also Edison will pay FOGL an additional US$40 million in cash – with US$20 million being paid on completion of the farm-out and US$20 million due next year.

"We are delighted to have agreed favourable farm out terms with Edison. Edison is an experienced international exploration and production company, now owned by a major European energy company,” said FOGL chief executive Tim Bushell.

“The discussions we have held with Edison over the past few months augur well for a successful relationship.

“This farm out provides further industry validation of the potential of our licences and gives us greater financial flexibility for our future exploration programme."

FOGL says it expects to receive the Leiv Eiriksson rig in July, once fellow Falkland explorer Borders & Southern has completed the Stebbing well – which spudded in early May.

The first well of the programme will be on the Loligo prospect in the Northern licence area. And FOGL says the location of the second well will depend on the results of the first well.

If Loligo is a success FOGL says it will drill either a Loligo follow up well or it will drill the Nimrod Complex. Alternatively it will drill the Scotia prospect. Each of these prospects are located in the Northern licence area.

Meanwhile FOGL says that Borders and Southern’s Darwin gas condensate discovery is positive for its prospects in the Southern licence area. That is because it has demonstrated the presence of mature source rocks and a working hydrocarbon system, it said.

And it says the result has reduced the risks associated with at least six of FOGL’s prospects in the Southern licence area that have similar characteristics to the discovery. These prospects are located around 10 to 50 kilometres from the Darwin discovery, FOGL added.

The company said that further drilling in the current campaign will depend on well results and rig availability.

Lots of words. Lots of oil?

so far, no oil or even gas; just hot air :-)

Still, lots of opportunities to make a few bob pre-spud & pre-TD news. Am out of BOR, but happy to hold FOGL for now.
Clearly EDF don't seem too concerned about the Argentine threat.

Major point here is that FOGL will now end their 2 well drilling with enough cash to drill a 3rd well, if the option can still be taken (depending on when the 2 wells complete) and also have enough money for a full 3D seismic campaign in late 2012/early 2013.

No need to raise money for 12 to 18 months if they so wish.

Which leaves them in a very strong position and allows the share price to rise without fear of any discounted panic placings.

:)