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/

11% up today :) and PI's still buying at 138/139 !! Did you get in at 110 cynic ?

If we can break above 2005's peak, there will be a direct route through to last Spring's 180p (when I should have sold ready to buy back in at sub-80p, of course - hindsight being a wonderful skill - lol!)

Looking good ! not long to wait now !!

good tic up today,nice to see buying @141 !!

hi smiler .... no, in a word .... have been away cycling in Burgundy for last week, and was amazed to find portfolio worth more on my return than when i left .... FOGL has certainly performed well as has PET, and as MXP has most decidedly not!

my concern about FOGL and PET and similar is that they are still effectively trading on blue sky and rumour .... while there is certainly (good) logic to buy or sell on impetus, the current state of the market does not fill me with any confidence.

however, i shall continue to watch, but certainly shall not buy until my tiny brain pretends it is back in tune with the market, at least to some extent.

looking good this morning !! imo with the right news we could still see 180 + !!

Prospect
of oil is
as good
as it gets

April 07

The Falkland Islands may not
have joined the ranks of oil
producers yet but it is only a
matter of time.
Oil companies that have reviewed
the territorys geological
data say the prospects are
as good as it gets, according
to Chris Simpkins, the Chief
Executive.
The oil is certainly there in
commercial quantities and it is
now a question of bringing in a
drilling rig to continue exploratory
work.
When the first drilling work
was done in 1998 the world oil
market was radically different
from today. The pressure to
find more oil has increased
exponentially and the market
is very tight, with most rigs
fully engaged.
Before the turn of the century,
rigs cost about $180,000
(92,000) a day, now they cost
$400,000 a day, exclusive of
delivery costs. About three
months work is required in
Desire Petroleums field to the
north of the Islands, so initial
investment will be substantial.
The best hope, says Phyl
Rendell, the Falkland Islands
director of mineral resources, is
that a rig will be available for
the northern field next year,
while the Falklands Oil and
Gas Company hopes to drill in
the south and east basins,
about 130km offshore, in 2009.
Its pretty exciting, Rendell
says.
The administration is determined
that it will not let any oil
bonanza distort the economy
or disfigure the landscape. All
oil will be loaded offshore



http://www.falklands.gov.fk/focus/times-48.pdf

Smiler O,

And with the oil prospects of Iraq looking a bigger risk day by day, with Russia frightening oil companies off re further development there, (Kazakhstan also pushing the threats) the Falklands look the next place to be.
Not wanting to start a British/Argentina debate, but would this country with it's present forces commitment want to or even be able to defend the oil rights.
That in my opinion is always a risk/doubt.
Not in Fogl went for Fkl instead. Looks like as they are both connected, either is a good bet.

Not one to tip the markets in general (who can at the moment) but on Hols Sunday for 2 weeks, and over the last 6 Hols have always come back to a portfolio loss. Be nice to see a rise on return for a change.

would be nice ! At a guess News could be anyday now,(I still say BHP Billiton,or ConocoPhillips at a guess) lets hope its good news, and it will be good for all the falkland oilers !

As an RAB holder can I wish everyone here good fortune!

thanks !

whats happened

Hope to have News soon on a Major farmin to start drilling in 08, just have a read back at some of the post ! but pls DYOR

Cynic, You watching !! nice tic up 2day ,interesting to see how this ends up ?

yes indeed ..... just hope it is not ultimately tears .... were i a holder from say 120 or lower, i would be watching very carefully indeed with a possible view of banking at least some of the profit if there are signs of significant weakness

Bound to get some profit taking, have not seen 160 for a while !! I am still holding out for my 180 !! :) still hoping for news soon !

Assuming an oil major takes a stake in FOGL, what then?
Obviously FOGL will then have an almost bottomless pit of money for exploration purposes, but oil will still have to be found & drilled, so is it likely that the original hype surrounding the merger will drift off?
Also, why is 180p a target price? Historically that is about as far as it's gone, but an oil major is going to pump in whatever it takes (s) to find oil, so valuing FOGL is going to be almost impossible. In fact, will FOGL still exist as a company?

assuming what if is illusory, then what?

I currently hold FOGL. The point I am making, is it is very difficult to predict what is going to happen, assuming an oil major enters the scene. So, when to get out?

with the CSEM 2d &3d seismic , fogl' s top 10 prospects should be significantly de-risked. & what oil Major would be interested if Prospects did not look that good ! 180/200 is my target price which with the news on the major (if they get it) we could see !