FOGL Moves towards Commercial Discoveries within Their Licences

FOGL, the oil and gas exploration company with an extensive licence interest in the Falkland Islands, announces its Final Results for the year ended 31 December 2012.

At 31 December 2012, cash balances were US$174 million with a further US$45 million due from the farm-outs. The company reports the overall profit for the year was US$1.1 million (2011: loss of US$6.6 million).

Richard Liddell, Chairman of FOGL, said: “In 2012 FOGL made great progress towards its objective of making commercial discoveries within our licences. As operator two deep-water exploration wells were drilled, safely, within budget and on schedule. Both wells significantly de-risked the East Falkland basin and, in the case of Loligo, demonstrated significant in-place gas volumes within multiple reservoirs. Post well drilling analysis indicates that significant potential for oil discoveries still exists within our licences.

“Major farm-out agreements were secured with two substantial international E&P companies with strong exploration track records. At the same time FOGL retained a very substantial interest in its extensive acreage.

“FOGL is fully funded for an extensive 3D seismic survey covering some 10,000sq km and a three well exploration programme.

“With our partners, we have an ambitious work programme designed to further de-risk our prospect inventory and in particular, focus on the oil potential within our licence areas. This will lead to the identification of new targets and further exploration drilling in 2014/15.

“To date we have acquired 35,000km of 2D seismic, drilled three wells, and as a result proved a working petroleum system. Now with our new partners we are funded to shoot over 10,000sq km of 3D seismic and drill three further exploration wells. We remain optimistic about the potential of our licences.”

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May 02, 2013