FalkLand Oil and Gas (fka FLKOF)

[geopressure]

Borders & Southern recently made a gas-condnsate discovery @ their first prospect in the South Falkland Basin. This is why FLKOF is trading at a higher range. The British Press is giving Borders & Southern & a difficult time suggesting that condensate discoveries are bad... I think that the Press is assuming that because gas is bad (in that HUGE reserves would be required to justify building a floating LNG facility) then gas-condensate is also bad - this is not the case...

Condensate, as the name suggest, does not need to be condensed like natural gas does in order to make logistics work...

The structure of FLKOF's Lolingo prospect is large enough to warrant to installation of an LNG Train should it turn out to be a gas discovery...

We don't really know a lot about this basin yet, but I'm still hoping for crude at Lolingo...

[SCREAMING EAGLE]

LOL! This should prove to be a pretty exciting year for big oil exploration projects.

[korpin]

never mind i read the info above!

[korpin]

does anyone know how deep the Loligo plans on drilling to find oil and how deep the water is in that area?

[350z]

Borders update http://www.reuters.com/article/2012/04/23/bordersandsouthernpetroleum-idUSL5E8FN0JF20120423?feedType=RSS&feedName=rbssEnergyNews&rpc=43

[350z]

Brit oil strike http://www.thesun.co.uk/sol/homepage/news/politics/4271600/British-oil-strike-off-the-Falkland-Islands.html

[350z]

Hopes of Borders oil lifts Falklands explores. http://www.independent.co.uk/news/business/sharewatch/market-report-hopes-of-borders-oil-find-lifts-falklands-explorers-7658132.html

[bigone]

We were shareholders a few years ago. Considering getting back in. Any really good prospects for the share price to move up this year?

[WildcatDriller]

Faulkland Oil & Gas agrees to a farm out deal worth 111 million.


Falkland Oil & Gas agrees farm-out deal worth around US$111 mln
7:29 am by Jamie AshcroftFOGL expects to receive the Leiv Eiriksson rig (pictured) for its two well programme in early June

Falkland Oil & Gas (LON:FOGL) has agreed a significant farm-out deal with an, as yet, unnamed party which will help fund its deep water drilling programme.

It has given its potential partner an option to acquire a 25 per cent stake in the group’s licence areas.

In return FOGL will receive around US$111 million via a structured deal.

Initially it will receive a US$6 million payment upfront to secure the option. Half of that will be deducted from a subsequent US$20 million payment prior to the spudding of FOGL’s Loligo well, which is currently expected to happen in June.

A further US$20 million cash payment would then follow in 2013.

FOGL will also receive payments related to its share of some back-costs from its operations in 2011. This is currently estimated at US$68 million.

Going forward the new partner would contribute a pro-rata share of the costs for the two exploration wells that are planned for this year.

FOGL says the potential new partner is unable to complete the farm-out agreement at this time, for corporate reasons unrelated to this deal, but it is expected to do so within the next two months.

"We are delighted to have agreed favourable farm-out terms,” said chief executive Tim Bushell.

“This farmout provides further external industry confirmation of the technical case and gives us greater flexibility with respect to our drilling plans.

"We look forward to progressing our drilling campaign in the next few months."

FOGL also confirmed this morning that following the recently reported 4-5 week drilling delay on the nearby Darwin well, which is operated by Borders & Southern, it does not expect to receive the rig for its two well programme until early June.

The delay has no impact on the contractual arrangements for its two well drilling contract, FOGL said.

Earlier this year FOGL raised nearly £50 million in the equity market to support its drilling plans.

It meant that it could commit to drilling the Loligo prospect, its priority target, in the upcoming programme.

Under the new plan, Loligo well will now be able to test three deeper reservoir targets which, according to FOGL, contain about 54 per cent of the prospect’s total resource potential.

In total, the entire Loligo prospect has been assessed to have a prospective resource of 4.7 billion barrels of oil.

FOGL must first wait for Borders & Southern to complete its two well exploration drilling programme.

Drilling began on Border’s Darwin prospect at the end of January. The Darwin prospect is located some 140 kilometres off the coast of the Falkland Islands. And it is believed to contain around 760 million barrels of oil.

After Darwin, the Stebbing exploration well will follow. This is testing a larger target, which is estimated at 1.3 billion barrels of oil.

Subsequently the Leiv Eiriksson rig will move on to FOGL’s two well programme.

[WildcatDriller]

Geo, SE is in the hospital with a severe kidney stone issue. He told me he has three very hot plays that are pretty much unknown to the general market yet. George Soros and John Paulson have just taken big positions. I'm going to visit him tonight and I will pass the info on to you.

[geopressure]

Borders & Southern has re-spudded their Darwin Prospect after moving the rig 60ft to a new surface location... some kind of BOP problem ...

[geopressure]

Borders & Southern has re-spudded their Darwin Prospect after moving the rig 60ft to a new surface location... some kind of BOP problem ...

[SCREAMING EAGLE]

I'm very excited about this prospect.

[geopressure]

BOP issues while drilling Borders & Southern 'Darwin' Prospect has set the schedule for FLKOF's 'Longino' Spud back by a week or more... We can expect these setbacks to continue, Drilling in the East Falkland basin is a Logistical Nightmare...

FLKOF plans to Spud in May. Mentally, I pushed that back to June before Borders & Southern even spudded their well, but it could be prudent to start looking at July for FLKOF's spud.

There is always the possibility that Borders & Southern will only drill one of their prospects, then pass the torch (rig) along to FLKOF... this possibility shouldn't be overlooked...

[geopressure]

FOGL.L Breakout on a US Holiday, FLKOF will be up tomorrow - already overbought though...

There is a report by GMP Securities which details high impact exploration plays in 2012, but That is the first that I have heard of PCOGF....

[WildcatDriller]

I like the chances here and have a few thousand shares. I just don't have enough money to throw around. LOL! SE got me a really nice hit with Lundin and am waiting on Africa Oil to knock a couple out of the park. SE is big time high on this prospect, a prospect that Chariot Oil and gas has, CGXEF and PCOGF. I don't know how he finds all this stuff.

[geopressure]

Falkland's 'Lolingo' prospect is likely the largest un-drilled prospect that is left on earth... 4.7 Billion barrels of oil equivalent. FLKOF gives interested investors a fairly high resolution seismic crossection of this prospect in their investor's presentation. I am no Geoscientist (though I have a few textbooks on the subject, and desperately want to be) but there are definitely hydrocarbons down there. Worse case it all gas, which is unlikely given the temperature gradient. Also evident in the seismic image is that the upper part of the reservoir is naturally fractured, though the fractures have filled with calcite or some other cement & act as pressure seals, ultimately compartmentalizing the reservoir. This means that multiple wellbores with multiple laterals will be required to efficiently drain the reservoir. However, after the prospect is proven, FLKOF shouldn't have any issues obtaining further financing to fund the additional wellbores. This will be a small price to pay in order to exploit a 4.7 Billion barrel reservoir.

GMP securities' analysts give FLKOF/FOGL.L a 6000% unrisked upside and only used 1/3rd of the estimated reserves of Lolingo to reach this conclusion. Scheduled to Spud using the Liev Errickson in May of 2012, but expect this to be delayed by a month or two because nothing works out on time in this industry...

[geopressure]

I want more shares... very nice chart, below:

[geopressure]

I agree nice upside, potential investors should take a look @ the company's website...

Yes, Screaming Eagle, you are being stalked...

[350z]

SC, Can you give me a quick update? When will they drill, how many wells? Potential of oil? I have been out of touch on this play for a while. TIA.

[SCREAMING EAGLE]

The best part is the price is right!

[SCREAMING EAGLE]

The Loligo prospect could off as much as 6000% upside from here.

[SCREAMING EAGLE]

Good prospects being developed now.

[SCREAMING EAGLE]

This could hold some tremendous upside.

[350z]

http://www.iii.co.uk/investment/detail?code=cotn:FOGL.L&it=le

[350z]

http://www.fogl.com/fogl/templates/fogl/modules/regulatorynews_item.jsp?ric=&ref=48252

[350z]

http://www.fogl.com/fogl/en/Operations/story/drilling_updates?ref=7

[350z]

http://www.iii.co.uk/investment/detail?code=cotn:FOGL.L&display=news&it=le

[350z]

http://www.iii.co.uk/investment/detail?code=cotn:FOGL.L&display=news&it=le

[350z]

http://www.express.co.uk/posts/view/182797/FIH-hoping-for-oil-strike-in-Falklands

[350z]

http://www.pennenergy.com/index/petroleum/display/6256122717/articles/pennenergy/petroleum/offshore/2010/06/falkland-oil___gas.html

[350z]

http://www.fogl.com/fogl/en/Operations/story/drilling_updates?ref=6

[swknuckles]

According to the following story, it sounds like Desire and Rockhopper are shooting for a drilling window in their North Falkland Basic tracts in early 2010.

http://www.investorschronicle.co.uk/Companies/ByEvent/Risk/Analysis/article/20090916/001866f0-a2b3-11de-acf8-0015171400aa/Falklands-oil-dream-starts-to-become-reality.jsp

The story also states that FOGL is attempting to secure a rig so that drilling in the much-deeper South Falklands Basin could begin as early as late 2010.

The saying goes, "Patience is a virtue." Well, I have never claimed to be patient OR virtuous--so here's hoping the plans remain on schedule for FOGL/FLKOF!

Steve

[350z]

Chicken Fried Stock, Do you have any idea how many wells will be drilled? TIA.

[Chicken Fried Stock]

350z, we are waiting an announcement for a drilling rig soon. BHP is responsible for booking it, and the joint venture contract says they must drill by October 2010. This is my best guess prediction: the rig might be announced by the end of September and we could see drilling start in March/April 2010

[350z]

CFS, Good find! Any idea when the drilling starts? 2010?

[Chicken Fried Stock]

If you hold FOGL, this should make you feel better: The Guinness Atkinson Global Energy Fund has bought FOGL into their portfolio in May. This is a nice affirmation from a very prestigious energy fund.
See page 17, bottom section titled under Buys/Sells, a paragraph about why they bought FOGL.

See page 20 under the section "Exploration & Production Emerging Markets", the stock is listed there.

http://www.gafunds.com/energybrief/20090630/energybrief20090630.pdf

[Chicken Fried Stock]

A recap of the latest developments:
* Argentina and England file overlapping claims of seabed to the UN
* Annual meeting held just this week
* Plans to file Environmental Impact Assessment this summer
* Plans to be "drill ready" in 3rd quarter this year

No announcements about the rig yet; however, I speculate that the rig cannot be formalized until the Environmental report is approved.

[Chicken Fried Stock]

Another article about the Falkland Islands Oil prospects:

"Falklands' new dawn: islanders plan future around 18bn barrels of oil"

http://www.guardian.co.uk/uk/2009/jan/28/falkland-islands-oil-drilling-impact

[Chicken Fried Stock]

Here's some more good news...
February 23, 2009
Falkland Oil and Gas Limited - Completion of Site Survey Programme

http://www.fogl.co.uk/investor/pressReleases.asp

I'm putting this at the top of the Ibox.

[swknuckles]

I appreciate your posts--especially all those with the great news! FLKOF closed at $1.01 USD today which is certainly off the $3.35 yearly high. Not to worry, however. Let's keep our collective fingers crossed for late 2009.

Steve

[Chicken Fried Stock]

Latest new article:
http://www.mercopress.com/vernoticia.do?id=15522&formato=HTML

[Chicken Fried Stock]

Let's hope for an announcement of the rig from BHP soon, maybe in a few months, that will stir things up!

[Chicken Fried Stock]

I haven't posted any news lately, so here's my understanding of what has happened in the last few months, and it's all good news in my opinion:

* BHP has confirmed they plan to drill in the 4th quarter of 2009, regardless of the turmoil in the markets.
* Site survey is proceeding now in prepartion for drilling.
* BHP withdrew bid for Rio Tinto. For FOGL, I think this is great news because Rio Tinto would have been a distraction and Rio Tinto has assets in Argentina, which would stir protests.
* There was a panic that the largest institutional shareholder, R&B Capital, could dump all their FOGL shares because of investors pulling out their money from the mutual fund. The fund froze redemptions for a few years to prevent forced liquidation of shares. So this is not a concern anymore.
* Although the oil price has dropped, the bright side is the availability of rigs has improved and many of us believe the oil price will not stay low when the world economies recover one by one.

[Chicken Fried Stock]

It is no fun to be underwater with the share price. I guess we're waiting for drilling about a year from now. My experience with other oil plays is that when drilling is imminent, (within weeks of starting), the share price recovers from the doldrums. Until then, the share price seems to have found support at this level.

[swknuckles]

Why is this Falkland Oil and Gas message board so dead? Considering the price plunge that our stock has taken, I would have suspected more chatter. I'm still holding on to my 4,500+ shares in the hope that something turns around soon. Then again, since the stock is sitting at $0.93 (USD)/share, is this the time to purchase more?

Thanks,
Steve in St. Louis

[Chicken Fried Stock]

I did some updating on the ibox. Also, I added some shares on this price dip; however, I was unable to get any shares under a pound. The price dipped under a pound for only a blink of an eye and immediately popped back up. I think someone shorted this and as soon as it went under a pound, the volume was nearly a million shares (short covering) and immediately up 10 pence. This seems to happen about every six months now.

[apostrophe]

oil took quite the little dip today.

It's still going to be at historical high prices but the psychology may stall our recovery in pps here. Even if oil goes down significantly, confirming the presence of any oil or gas reserves is going to send the value of this up by multiples. There are a lot of risk factors to global oil supply, so even if there is some temporary moderation in demand, the overal trend remains up.

I don't know. All it will take is probably one pr to re-ignite buying interest. otoh, nothing much is probably going to happen with the co. until next year. So, more holding of dead money so as not to miss the big sudden event in the future. One gets a few of these in their portfolio and you really begin to start getting annoyed with them after a while, month after month.

Theoretically, one shouldn't care much about the pps if one is convinced that of the future potencial, however these dips in pps create an annoying fluctuation in one's account balance ( i have the adr's) which dodn't even trade for days at a time. That, along with the typically wide spread makes it hard to buy back in later, so one is also reluctant to dump.

[apostrophe]

Oil back on the upswing before weekly data

By Steve Goldstein
Last update: 5:51 a.m. EDT July 9, 2008
LONDON (MarketWatch) -- Oil futures gained ground in electronic trade Wednesday, following the biggest two-day drop in nearly four months. Crude rose $1.69 to $137.73 a barrel following reports that Iran test-fired a new missile, with data on weekly energy inventories due out at 10:30 a.m. Eastern.

http://www.marketwatch.com/News/Story/oil-back-upswing-before-weekly/story.aspx?guid={10E2EA0E-A30D-41E5-981D-842E1A54AF9D}&siteid=msn

This downspike isn't likely to last long. The risk-premium for middle-east oil just notched up after a long quiet spell.

Reserves and high-potential reserves in non-volatile/non-dangerous areas are going to be in increasing demand.

Hurricane season in GOM justs atsrted as well.

[apostrophe]

re" buying opportunity..."

I think you're right. This reminds me of the down spike near the beginning of the year. I had a hard time resisting selling then too, probably should have bought more, but at least didn't sell so didn't totally screw up. <g>

I would expect a similar short-lived spike down - actually watching intraday, bouncing pretty hard off 1 pound. The fact that psychological threshold is at play intigates that this is mostly a psychological phenomona due to generall market sell offs in europe and us due to finance market concerns. I suspect the going rate of a pound isn't going to persist once some of the financial panic starts to wear off. The market just needs time to get used to new conditions ands probably a few more carry trades need to unwind and so forth.

Actually even if oil drops 10% more we are still way above where we were at the beginning of the year. Actually these dips in oil are minor so far, oil still shows a solid uptrend. Also we are much closer to proving up some reserves than , back then we didn't have BHP JV partner to do heavy lifting.

The fact that oil seeps exist and that a war was fought over this area should indicate the potencial. The story of the giant Mexican Canteral off shore oil field 30 years ago or so basically started with an oil seep. The old mexican field in is decline now but not before billions of barrels were pumped. The fact that most known major oildfields are in decline should also undercore the value of the Falklands potencial.

I realize that I am probably preaching to the choir but sometimes maybe it helps to sing a few lines to ourselves to "keep the faith" <g>