Falklands : Hydrocarbons Daily Record (06/09/06)
Submitted by Falkland Islands News Network (Juanita Brock) 07.09.2006 (Article Archived on 21.09.2006)
Excellent news from FOGL today.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 06 SEPTEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Wednesday, 06 September 2006 Light Sweet Crude fell .83 Cents to stand at $67.77 and Brent Crude fell .22 Cents to stand at $67.87.
TRENDS
More ease about the mid-east and gasoline supplies in the States has brought the price of crude down today. There also is acceptance about Iran not giving in to pressure to stop enriching nuclear fuel for energy generation. Florence seems to be the new item in the North Atlantic.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 52.39 points to settle 5,929.30 and the FTSE 250 was down 60.10 points to end at 9.700.90. FTSE Small Cap closed down 0.24 points to settle at 3,482.00.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index decreased 63.08 points or -0.55% to settle at 11,406.20 and the NASDAQ closed down 37.86 or -1.72% to settle at 2,167.84.
DEVELOPING REGIONAL FACTORS:
(Falkland Islands)
Falkland Oil and Gas Limited
(“FOGL” or “the Company”)
Falkland Oil and Gas to conduct new 2D seismic survey
Falkland Oil and Gas Limited has signed a contract with Wavefield InSeis AS (“Wavefield”) to
undertake a 10,000 km 2D seismic survey over the company’s licences in the South and East
Falkland Basins.
This is the second part of our revised forward exploration programme. Our strategy is to acquire
Controlled Source Electro-magnetic (“CSEM”) data over many of the larger prospects and leads
that we have identified, and, based on the results from the CSEM survey, acquire infill 2D seismic
over the most prospective targets. The data from the two programmes will help us to further de-risk the prospects and determine the best targets for drilling exploration wells in 2008. Our revised programme is a very significant achievement for the Company. With the large number of prospects that we have, these two methods will provide the most effective exploration solution for FOGL.
FOGL will also have the option to acquire additional 2D seismic over the 10,000 km, dependent on both the results of the CSEM survey and weather conditions. We expect to commence both the 2D seismic and the CSEM surveys before the end of 2006 and be in a position to announce the results next year.
Tim Bushell, Chief Executive Officer commented:
“The proposed 2D seismic programme, in conjunction with the recently announced CSEM survey, represents the launch of our revised forward programme. This achievement is highly significant for the Company and we believe it will provide FOGL with the most effective solution to further explore its licence areas. The data collected from this programme, will assist us to further de-risk and identify the best prospects for drilling in 2008.
6 September 2006
Enquiries:
FOGL 020 7563 1260
Tim Bushell, Chief Executive
College Hill 020 7457 2020
Nick Elwes / Paddy Blewer
www.fogl.com
For further information on Wavefield please see www.wavefield.no
Wednesday 6 September 2006
Falkland Oil and Gas Limited
(“FOGL” or “the Company”)
Annual General Meeting
The following statement was made by FOGL’s Chairman, Richard Liddell, at the Company’s Annual General Meeting, today:
“The last twelve months have been a period of significant progress for FOGL. The second 2D seismic survey was completed and we have now recorded 22,450 km of seismic, a very significant amount covering an enormous area. The results of the latest 2D seismic survey have continued to support our view that there is potential for a new and very substantial petroleum province to the South and East of the Falkland Islands.
Through our surveys and technical evaluations, we have identified a number of different hydrocarbon plays (reservoir trap type) and have mapped over 100 prospects (fully defined, ready-to-drill target) and leads (potentially prospective feature). We continue to believe that some of these assets have the potential for multi-billion barrels of oil and gas reserves.
This year we have also strengthened our management team. We now have in place a UK executive team lead by Tim Bushell, who joined us from Paladin Resources, and we have also appointed Colin More as exploration manager, who has over 23 years of exploration experience in the industry. I am also very pleased to have taken over the Chairmanship of FOGL, following John Armstrong’s decision to stand down.
We have also launched a revised forward work programme, within which we are no longerobliged to undertake 3D seismic, and, we have obtained an extension to the work programme for the southern licenses to align with our northern licenses. Instead of 3D seismic, we will concentrate our next exploration phase on a combination of additional 2D seismic and Controlled Source Electro-Magnetic (“CSEM”) surveys. We have recently entered into agreements with Wavefield InSeis AS (“Wavefield”) for the 2D seismic, and with Offshore Hydrocarbon Mapping Ltd (“OHM”) for the CSEM survey. The revised work programme is a significant achievement for FOGL, as we believe it will provide the mosteffective solution for exploration of our licenses and improving our chances of success. It is expected that both surveys will commence before the end of the year.
The new work programme is specifically targeted at the larger prospects and is designed tode-risk and high grade our prospect and lead inventory, leading to the selection of drilling locations. Our objective is now to commence exploratory drilling in 2008, and a number o fpotential rig options available to the Company are currently being evaluated. Concurrently, discussions with potential third party participants have been progressed andare still ongoing. A number of companies have shown a great deal of interest in our assets, and the new work programme has also been positively received by potential farminees, andis therefore likely to appeal to a much wider range of potential partners.
More feel good news about our own reserves means that Desire Plc and Rockhopper Exploration share prices have risen today. This has been a good day generally for oil shares.
Share prices at the close of play on Monday, 04 September 2006
Desire Petroleum Plc was up 0.75 points or 1.96% on the day to settle at 39.25.
Falkland Oil and Gas Limited (FOGL) fell 0.50 points or 0.42% on the day to stand at 117.50.
Rockhopper Exploration ended up 6.00 points or 15.38% on the day to settle at 45.00.
Borders & Southern ended unchanged on the day to stand at 45.25.
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