Falkland Oil and Gas

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Falkland Oil and Gas Ltd
Public
Traded as LSEFOGL
Industry Oil and gas extraction
Founded 27 May 2004
Headquarters London, United Kingdom
Area served
Falkland Islands
Key people
Richard Liddell (Chairman)
Tim Bushell (CEO)
Revenue None
-£4,404,000 (2014)
Profit -£3,232,000 (2014)
Total assets £357,317,000 (2014)
Total equity £349,781,000 (2014)[1]
Number of employees
7[2]
Website FOGL.com

Falkland Oil and Gas Ltd, abbreviated to FOGL, is an energy company registered in the Falkland Islands and head-quartered in London, the United Kingdom. Its business is based on exploring for offshore oil reserves off the coast of the Falklands. It owns the right to extract oil from a number of blocks to the east and the south of the islands.

FOGL is listed on the Alternative Investment Market of the London Stock Exchange. The company issued an initial public offering on 14 October 2004, debuting at a price of 40p.[2] By 2010, FOGL estimated that its four best prospects could contain 8 billion barrels (1.3 billion cubic metres),[3] with up to 60 billion barrels (9.5 billion cubic metres) in total in all sectors off the coasts of the Falklands.[4] The share price peaked at 267p in June 2010, but slumped by half on 12 July 2010, when it was found that one of its prospect wells, Toroa, was empty [5]- as of 1 March 2015 the share price had dropped to ~25 pence. Recently the company has raised enough money to expand operations (see operations)

Other oil-exploring firms off the islands include Rockhopper Exploration, Desire Petroleum, and Borders & Southern.

Operations[edit]

North Falkland Basin

Prospect Name Estimated Resources (MMBOE) Start date Results and/or notes
Zebedee 281 April 2015 40 percent owned by Falklands Oil and Gas, 36 percent by Premiere Oil and 24 percent by Rockhopper Exploration.

On the 2 April, during the first of the 4 planned wells at Zebedee a 27.9 meter oil reservoir and 18.5 meter gas reservoir was found (this was better than expected.)

Isobel Deep 240 May 2015
Jayne East 85 June 2015

South and East Falkland Basin

Prospect Name Estimated Resources (MMBOE) Start date Results and/or notes
Humpback 510 July 2015 Part of Diomedea fan complex. WI 52.5% / PI 27.5%. Net prospective resources 268 Million barrels. Operator Noble energy (35%), Partner Edison (12.5%)
Stingray Part of Diomedea fan complex. Requires success at Humpback. Operated by Noble
Scharnhorst North 335 Q1 2015 Part of Fault Block Area. Noble operated
Starfish 402 Q1 Part of Hersilia Fan Complex. Operated by Noble
Well 2 ~300-~400 August 2015
Scotia November 2012 Gas shows - proven working hydrocarbon system but poor quality reservoir
Loligo September 2012 Gas bearing zones but poor quality reservoir
Toroa July 2010 Dry - but excellent Cretaceous reservoirs

Legal Issues[edit]

Argentina

Due to the Disputed nature of the Falkland Islands FOGL has received criticism from Argentina, on 30 April 2014 FOGL annouced the folloing in their annual report;

Argentina legal issue
It is well documented that Argentina claims sovereignty over the Falkland Islands and the surrounding maritime areas. The Argentine government has recently stated that it intends to take legal action against companies and individuals with regards to this claim. Neither FOGL, nor any of its Directors have received any written notification or legal documents from the Argentine Government with respect to such actions. FOGL's position on this issue is clear. The Hydrocarbons Law (Law No 26.659) enacted by the government of Argentina does not apply to the Falkland Islands or its surrounding waters, and is therefore unlawful. Any attempts to enforce Argentine domestic legislation in relation to the Falkland Islands continental shelf are an unlawful assertion of extraterritorial jurisdiction. As such, Argentina's action is contrary to the UN Convention of the Law of the Sea. It is also unlawful interference with the right of the Falkland Islanders under the UN Charter to selfdetermination, their right to develop their hydrocarbons resources and the peaceful development of their economy.

[6]

Footnotes[edit]

External links[edit]