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 have some in the pocket already....the problem is do I take some profit if the sp shoots up before results ?......on a negative result this will crash....not sure what to do....would be very annoying to miss out and then again I would hate it if it crashes and to get a free ride now is impossible at the price the sp is....

Depending on your holding & the price you got in at, I would advise 'hold some, trade some'. I got in with DES & did exactly that, which worked very well. I still hold a few, but they are virtually a free ride. Obviously, with hindsight, my holding with RKH could have produced better results if I hadn't traded some, but there is no way to know if it's a duster or gusher in advance. If the first FOGL well is a duster you are going to have to hold for quite a while before the next deep water well is drilled. No more 'grrrrrr's' please rf, just 'ahhhhhhhh's'. ;o)

Agreed....Harrycat....will try and trade a few.....wish I had a bit more dosh in my sipp now....shame this falkland lot are not "isable".

There is no reason at all for FOGL to move with DES and RKH.

DES and RKH are NORTH and FOGL is SOUTH, and so they are not related.

That FOGL moves a bit with DES/RKH is purely the same people buying and selling the same companies.

I expect FOGL to get oil shows but no reservoir........ we shall see and for FOGL holders I hope I am wrong.

It's another gamble....

"There is no reason at all for FOGL to move with DES and RKH."
I don't agree. Much like one bank produces good results & it drags the others up in the same sector, also mining stocks regularly make moves in the same direction.
Falkland Island stocks all seem to move in sympathy when only one driller reports. The average trader is not really interested in the subtle difference between north & southern basins, just that oil is present beneath the waves in that general area. If FOGL hit oil, it's my guess that RKH & DES sp's will go up as a result, albeit temporarily.

If FOGL stike oil better get into BOR fast, they have more than enough funds to drill 2/3 holes, and look to spud late 2010.

Even better hold FKL, am in good profit already..

FKL is getting ramped by a certain tip mag, it will fall back when the hot money piles out.

you should know.....

FKL is the Falkland Island Holding co which, amongst its various divisions, owns the Falkland Island Company (FIC).

The FIC is the very core of the life on the Islands and, in recent past, was the only portal for imports but more importantly for exports. As such it ran accounts for the wool from farms and acted as a trading post - wool in, goods out.

It still owns major interests in the fields of port services, marine repair, Land rover franchise, accommodation and business units etc. It is the lifeblood of the islands.
It also has shares in FOGL

Any improvement that normally accompanies oil discovery is bound to have a major impact on the infrastructure of the islands and therefore, irrespective of which exploration company finds the stuff, the FIC will benefit. That is why the shares continue to rise.

An interesting footnote is that the FIC is so dominant in the Islands that the company was nearly subject of an aggressive take-over by the Argentinians!

Up 12p so far today......

FOGL of course is not
FKL is but on truly pathetic volume

profit is a profit no matter how it happens..

Indeed : ))

must put my glasses on...... sorry just realised wrong thread, FKL not so good today and FOGL hung in there .

Toroa F61/5-1 Exploration Well Spud

"FOGL is pleased to announce that the Toroa F61/5-1 exploration well spudded on Monday 31st May 2010.

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 circa 2,700 metres. Drilling operations are expected to take approximately 35 days and a further announcement will be made once drilling is completed."

And I thought I would be first off the mark. SP not moving as yet, but surely won't take long.

DES and RKH both moved well downwards from spudding notice for a few weeks.

FOGL should be the same ?

Yes, probably drift now until first week of July. (Maybe a blip up when RKH report?)