MercoPress. South Atlantic News Agency

FOG Stock Market Debut.

Falkland Oil and Gas is to offer investors a stake on possible oil reserves near the Falkland Islands later this week, when it announces details of its planned Aim listing.

FOG wants to raise about £10m to fund 3D seismic surveys of its seven exploration licences off the south of the archipelago and has identified several promising leads.

The company's stock market debut will remind seasoned investors of Desire Petroleum, whose share price trebled in a few days in May 1998 when the company was drilling north of the islands. However, Desire was back where it started two months later on news that the oil shows did not reach commercial volumes.

FOG is working with Hardman Resources to explore the possible basins at the south of the Island. The Australian energy company has 22.5 per cent stake in the licences. Drilling is expected to commence in 2006.

FOG was formed in May this year by Falkland Islands Holdings, which holds a 28.9 per cent stake, Global Petroleum (25.7 per cent) and RAD Special Situations (45.4 per cent). The existing shareholders will keep their stakes. KBC Peel Hunt has been appointed as broker.