Okay, I have spent the last few days researching the science of 'mud-logging' thoroughly, and I have come to the following conclusion. FOGL/FLKOF's 'Loligo' well was not a gas discovery, but an oil discovery. Mud-Loggers do not experience C1-C5 shows unless oil or condensate (liquids) inhabit the formation that is being drilled... This is a fact...
I believe that FLKOF/FOGL Management chose to call the well a 'gas' discovery in order to maintain an undervalued stock price - or a price per share that will be attractive to potential buyers (who I have a sneaky suspicion will be Anadarko).
I believe that the upside of owning FLKOF is the potential buyout that could happen at anytime, but certainly not in the next two months while FOGL/FLKOF is drilling their 'Scotia' Prospect. Also, I would expect for a buyout offer to occur before FOGL/FLKOF completes 3D Seismic next year.
Speaking of Scotia, I would look for any positive results from drilling to be suppressed in the same way that believe Loligo results were.
Long story short: This is a great 'buy & hold' company... Remember, assuming that Scotia does not run into significant drilling problems, then FOGL/FLKOF will exit 2012 with $200,000,000.00 of cash on hand, While the Market Cap is only about $360,000,000.00... meaning that the market on values all of FOGL/FLKOF's leases & holdings as being worth $160,000,000.00... FOGL/FLKOF is the deal of the century...
