Falkland Oil & Gas confirms Italian/French partner for drilling in South Atlantic
London AIM listed Falkland Oil & Gas (FOGL) said Italian utility Edison International Spa was its new partner, bringing in a large, non-British company to help it look for hydrocarbons in the Falkland Islands.
FOGL confirmed on Monday that Edison, which is owned by French group EDF, is the unnamed company which it said in March had bought an option to invest in its license areas off the coast of the Falkland Islands in the South Atlantic.
Edison will farm in and earn a 25% interest in FOGL's northern area licences. Edison will contribute its pro-rata share of the costs of the 2012 drilling program, comprising two exploration wells.
Edison will farm in and earn a 12.5% interest in FOGL's southern area licences and will contribute its pro-rata share of the 2012 work program. The Italian company will also pay its pro-rata share of certain historical costs incurred by FOGL during 2011 related to the 2012 drilling program.
Edison's share of historical expenditures together with their share of the 2012 drilling program costs, are expected to be of the order of 50 million dollars.
In addition Edison will make a separate cash contribution to FOGL of 40 million; 20 million on completion of the FOA and a further 20 million in 2013. In order to obtain the option, Edison had already paid a $3 million non-refundable fee.
FOGL will retain operatorship of the northern and southern area licences.
”We are delighted to have agreed favourable farm out terms with Edison. Edison is an experienced international exploration and production company, now owned by a major European energy company,” FOGL chief executive Tim Bushell said this morning.
Edison is a long established international exploration and production company which currently produces 48,000 barrels oil equivalent (boe) per day with approximately 360 million boe of reserves from over 80 licences spanning countries such as Italy, Egypt, Norway, Croatia, Algeria and the UK.
The company has experience in a wide variety of operating environments and has participated in a number of deep-water ventures elsewhere, including offshore Egypt. Edison is now controlled by EDF, the world's leading electricity company, who are looking to use Edison as a vehicle to expand its position in upstream oil and gas projects.
This farm out will considerably strengthen FOGL's financial position. In the event that the two exploration wells are drilled within budget it is estimated that on completion of the wells the Company's cash balances will not be less than 100 million dollars and they will be available to fund additional exploration work. This may include further drilling and/or the acquisition of 3D seismic.
The farm out to Edison has been approved by the Falkland Islands Government.
FOGL expects to receive the Leiv Eiriksson rig in July following completion of the drilling of the Borders &Southern Stebbing well. FOGL intends to drill its first well on the Loligo prospect and the second well will be selected based on the Loligo well results.
If the initial Loligo results are encouraging, it will either be a further well on Loligo or a well on Nimrod. Otherwise, a well will be drilled on the Mid Cretaceous Scotia prospect. Further drilling in this campaign would be subject to these well results and to rig availability.
Last march, the Argentine government announced that they had begun legal proceedings put together with the AFIP tax revenue agency against five British oil companies, accusing them of “carrying out illegal operations” in the Malvinas Islands. Argentina claims sovereignty over the archipelago and has warned international oil companies exploration on the disputed territories is illegal. It has also sent letters to the stock exchanges of New York and London warning them that listed companies involved in Falklands businesses are operating in an area under dispute.
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51 comments Feed
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And how did “Mr. Market” react to this wonderfull news?
FOGL shares went up a whole penny yesterday......
But the euphoria was shortlived :-(
FOGL shares went down a whole penny today......
Chuckle chuckle©
You said it wouldn't happen though..you said “computer says no”.
wrong again Think....a major now involved.
The reason why the Market didn't react is because they never saw the risk of it not happening. only you saw that risk...and you were wrong.
Let me refresh your memory…:
”en.mercopress.com/2012/05/11/indian-leading-oil-company-in-talks-to-buy-25-stake-in-falklands-exploration-block
28 Think
TWIMC
“Our people” have already called “their people” yesterday.........
“Their people” told “our people” that the answer to the Brits is clear....:
Computer says nooo....
www.youtube.com/watch?v=WOdjCb4LwQY”
How Turnipy can you be?
Computer said no about FOGL farm out with the Indian OVL Group…
Computer is always right.
Chuckle chuckle©
Obviously not as turnipy as you
en.mercopress.com/2012/06/04/argentina-declares-falklands-oil-activities-illegal-and-clandestine-and-anticipates-criminal-and-civil-actions
You seemed VERY sceptical that a deal had been signed by FOGL...and you were completely wrong.
Not quite as wrong as when you said RKH drilled in exactly the same spot as Shell in 1998. that was one of my favourites examples of your incompetence.
Keep them coming....
When are Argentina going to take all these oil companies to court then?
If Nestor hadn't have walked out of the talks on cooperation, Argentina would have had a share in the oil regardless off who holds the Falklands.
The Argentine share of Falklands oil because of that decision by Argentina=0%.
Which means the Falkland Islands are going to get richer.
Falkland Islands.
Limited resources + good government/management= a wealthy country per head of population.
Argentina.
Extremely massive and well resourced country + peronists= Failing, ferked up economy.
There glorious empress has promised them prosecutions , court orders,
We just cant wait to see court bailiffs arresting them.
Come on, don’t be shy .
.
Yes, when and where is all of this court action going to take place?
As you should be aware, the Falkland Islands are legally British as the Argentine Government of the day did sign that treaty in 1850.
Everything else is hot air.
I recall a comment: NO OIL NO OIL NO OIL, ect.
Then it moved on to “The oil will never be economically viable”
Now it's his predictions on what company's will get involved.
Anglo French joint military exercise 2014 “Operation Pile Removal”.
that does not exist .
But my forebears did win at Stamford Bridge...........................
It was a skirmish between Viking brothers, remember?
“Fortunate enough to be British” you say?
Why would anyone feel fortunate to be second class?
Correct; Hastings was kind of a Viking victory too.................
Steerage suits me fine......
Best place to find true first class people........
so much for Argenweeners efforts, go back to oppressing your own people it works on them. suckers.
However,Fantastic news for the Falklands people it was always going to happen,
@21 At this time of otherwise great disappointment for you, you score four runs for that late cut to the boundary of my very gentle full toss. And your weekend guest must indeed have been first class.
But these are not little Tiddler companies - so where stands the Argentine threats now?
IF - and its the $60,000 one - if someone else thinks RKH figures stact up - well the wall has been breached(if there ever was one -other than in CFK,s mind) so maybe another company will now be encouraged to go in with RKH? - We will have to wait and see - the political question has been firmly answered.
By the way- I agree - you do tend to meet a truer real person and often nicer folks in 2nd and steerage! Not that I,d ever object to a 1st ticket just so as to see how the other half live!
That is precisely what Edison is .... a little mismanaged tiddler company, recently swalowed by a bigger fish.
The ~90 million U$S farm in with FOGL is just one of its latest bad dispositions.
That's why the market reacts as it does........
No amount of ramping can change that fact........
Anyhow.............., we wait patiently for BOR's duster..................
He gets things wrong most of the time and when he posts something that turns out to be vaguely correct he posts further endless nonsense that will be without a shadow of a doubt wrong.
Keep up the good work buddy!
I grant you you were right re the Indian escapade, and with hindsight it was maybe not a bad result to for this side either when you dig into their performances recently.
But you do seem reluctant to accept reality when it goes our way for a change!
Whatever he says or doesn't say, I believe he knows very well that this is bad news for Argentina. The delay in naming Edison was entirely due to EDF conducting due diligence and clearing its yard arm with the new French (Socialist) government. That government is one committed to growth not austerity so it has given the go ahead to this deal; the fuel for that growth has to come from somewhere and this is a good place to start. For FOGL it's a triple endorsement of potential irrespective of short term market sentiment.
As for his India assessment he was spot on and I told him so at the time. No one who has half an interest in the subject would have believed that an Indian state owned company would be allowed by its owners to be the first to farm-in but some posters did and were proved wrong. I hope Think remembers how he felt when vindicated then and allows the rest of us the pleasure of a similar feeling now.
FOGL shares went up a whole penny yesterday......
But the euphoria was shortlived :-(
FOGL shares went down a whole penny today......
So we are agreed then? The threat of “Legal action” from the b*tch queen herself and all the noise coming from Argentina has made absolutely no difference whatsoever to anyone.
There is a lesson to be learnt here although I doubt anyone in Argentina will pause long enough to learn from it.
So go back to your Turnips Think, go back to your turnips, it's what you are good at.
You are wrong about Stamford Bridge, Think.
What else are you wrong about? Oil?
Now I hear that you are disappointed withyour investments. But that is the naure of investments - up and down - one of life's realities:-)
So - I believe that you were there -tell me abouth the 1970's. Tell me about condominium. Tell me about the failures. My blog site grows - feeds on information.
Tell me about your failures :-)
falklandstimeline.files.wordpress.com/2011/07/falklands-history8.pdf
Anyone bought into shale oil/gas in Argentina yet, no, never mind you can always pay the Chinese to take it away for you.
Have you ever thought, or been told, but for your arrogance and childish and aggressive behaviour,
The Falklands today would be just that , islands in the south Atlantic , and argentina the well known
Big brother trading helping and generally looking out for them [mmm]
But now, the British Falkland islanders are bigger better ,richer and more ambitious in structure,
They no longer want you , or indeed need you, any more, you have turn into a giant monster that’s rude aggressive nasty threatening abusive , and a liar of everything to say, you have lost credibility and the trust of the free world, you have dragged your country down into the gutter,
And now you are envy and jealous of a tiny tiny little islands, that are not only humiliating and embarrassing you, but they are making you, a big giant look stupid on the world stage
We hope this make you happy,
Because you make the world sick .
.
A cricketer, of course……….
I’m more of a croqueter myself…….
Anyhow.............Lets have a quick look at my portafolio…..:
BOR: Down to 58.00p - Down 6.25p - Down 9.73%
And a quick look at your portafolio…..:
BOR: Down to 58.00p - Down 6.25p - Down 9.73%
RKH: Down to 244.50p - Down 4.50p - Down 1.81%
FOGL: Down to 87.75p - Down 0.75p - Down 0.85%
Dam bursting?
(36) Isolde
Do have a look at Harold Godvinson’s lineage…
Direct descendant from free Viking Men...
AND free Viking Women...
No foreign subject blood in his veins…
Not a single drop...
(38) Mr. Lorton
Nice to read you again, lad…
You are becoming lazy nowadays...
How’s the shoulder?
We have been through this before.
Must l refresh your memory again?
No, l couldn't be too much bothered.
Harold had both Scandinavian & Saxon blood.
Don't know for sure but l would say that most of his men were Saxons.
lf his traitorist brother hadn't got the Norwegians involved then almost certainly Harold would have won at Hastings.
Ah, Think, like some of your ancestors,still interferring in British affairs!
You say….:
Harold had both Scandinavian & Saxon blood.
Don't know for sure but l would say that most of his men were Saxons.
I say…..:
That’s exactly what I’m saying, honeybunch…..
Harold had both Anglii = Viking & Saxon = Viking blood.
I’m quite sure that most of his men were Anglii = Viking & Saxon = Viking.
Is your pretty little head confused?
Try to look at the map…. To the right of the ”Oceanus Germanicus”…..
upload.wikimedia.org/wikipedia/commons/b/bb/Roman_Empire_125.png
Can you see where the Anglii are from?
Can you see where the Saxones are from?
Chuckle chuckle©
And had absorbed most of the local Celtic population & later Danish invasions.
Longer than you squatters have been in Argentina.
So although related to the Vikings, they were not the same people.
So, no, Harold & his men were not a pagan Vikings. But Christian Saxons.
Why are you always wrong?
Haven't you got anyone to look after you?
Hot cocoa & bed for you, my man.
My dear,”half blood” Viking cousin……
Our ”misunderstanding” seems to bound in your (quite common) misconceptions concerning “What” and “Who” the Vikings were………
Learn about them and you will learn about yourself….
Take a deep look into the mirror if you want to find your (half)Viking*…..
*(Disregard though your short stature, that drawback is due to a Celt chromosomal remnant….. ;-)
By all means think it.
Don't know where l got my height from.
Mum & Dad & all my siblings are taller than me.
l don't think that l'm short, l think that most people are too tall! ha.
Just think, Think. You might be my 30th cousin!
We might be cousins indeed.........
You certainly must be from the haughty branch of the Clan…..
I’m, of course, from the humble side…...
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