Oil & Gas
Oil & Gas
Falkland Oil and Gas Limited
18.3% shareholding; 16.8 million shares
www.fogl.com
A year ago, FIC had a 20% interest in the Falkland Hydrocarbon Consortium. In the last twelve months the consortium has been transformed into Falkland Oil and Gas Limited (FOGL) and tremendous progress has been made. FIC's parent company Falkland Island Holdings still retains an 18.3% interest in FOGL.
Following admission to AIM in October 2004 a 9,450 km 2D seismic survey commenced which was completed in May 2005. The seismic work provides a 2 dimensional map of the rock strata under the sea bed and is designed to identify potentially oil bearing formations. The results of the survey were encouraging and revealed leads both in the original licensed area but also in the totally unexplored northern licence area. To date some 130 leads have been identified compared with just eight at the time of the share placing.
Initial interpretation of the new data gives considerable cause for optimism. The preliminary results of the survey identify numerous Direct Hydrocarbon Indicators (DHI's) pointing to the presence of working petroleum systems. The leads are large and diverse, with some leads possibly covering areas of 300 to 500 sq km, sufficient to hold large reserves of oil or gas.
Any oil and gas exploration production would be likely to have a dramatic impact both on the Islands' population, currently some 3,000 people and on the economy. FIC would be a major beneficiary of this. Already there is much activity in the region with a number of other companies exploring for oil and gas around the Falkland Islands. They include two other AIM listed companies, Desire Petroleum and Borders and Southern.
Falkland Oil and Gas Limited
18.3% shareholding; 16.8 million shares
www.fogl.com
A year ago, FIC had a 20% interest in the Falkland Hydrocarbon Consortium. In the last twelve months the consortium has been transformed into Falkland Oil and Gas Limited (FOGL) and tremendous progress has been made. FIC's parent company Falkland Island Holdings still retains an 18.3% interest in FOGL.
Following admission to AIM in October 2004 a 9,450 km 2D seismic survey commenced which was completed in May 2005. The seismic work provides a 2 dimensional map of the rock strata under the sea bed and is designed to identify potentially oil bearing formations. The results of the survey were encouraging and revealed leads both in the original licensed area but also in the totally unexplored northern licence area. To date some 130 leads have been identified compared with just eight at the time of the share placing.
Initial interpretation of the new data gives considerable cause for optimism. The preliminary results of the survey identify numerous Direct Hydrocarbon Indicators (DHI's) pointing to the presence of working petroleum systems. The leads are large and diverse, with some leads possibly covering areas of 300 to 500 sq km, sufficient to hold large reserves of oil or gas.
Any oil and gas exploration production would be likely to have a dramatic impact both on the Islands' population, currently some 3,000 people and on the economy. FIC would be a major beneficiary of this. Already there is much activity in the region with a number of other companies exploring for oil and gas around the Falkland Islands. They include two other AIM listed companies, Desire Petroleum and Borders and Southern.
18.3% shareholding
16.8 million shares
At 31 March 2005 the Group held 14,450,000 FOGL shares with a market value of £17.1 million. Following the recent share placing in May 2005, FIH owns 16,803,000 shares with a cost of £2.7 million.
16.8 million shares
At 31 March 2005 the Group held 14,450,000 FOGL shares with a market value of £17.1 million. Following the recent share placing in May 2005, FIH owns 16,803,000 shares with a cost of £2.7 million.
Admission to AIM
FOGL was admitted to AIM in October 2004 at 40p per share, raising £12 million in the process. At that time, it held a 77.5% interest in licences covering 33,700 sq km and the available data enabled eight leads to be investigated...
FOGL was admitted to AIM in October 2004 at 40p per share, raising £12 million in the process. At that time, it held a 77.5% interest in licences covering 33,700 sq km and the available data enabled eight leads to be investigated...
... In December 2004, FOGL applied for and was awarded a 100% interest in licences covering an additional 50,000 sq km.
Ongoing seismic work
The plan now is to conduct further 2D seismic work and a contract has already been signed to acquire at least a further 8,000 km of 2D. A 3D seismic survey over up to 2,000 sq km is also under consideration.
The plan now is to conduct further 2D seismic work and a contract has already been signed to acquire at least a further 8,000 km of 2D. A 3D seismic survey over up to 2,000 sq km is also under consideration.
The target is to develop a portfolio of about 20 high quality and technically drillable prospects by the end 2006, with drilling expected to start in 2007.
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