MercoPress. South Atlantic News Agency

Kevin Goldstein Jackson: Falkland provides summer of thrills.

While many people got their thrills this summer by visiting theme parks, mine came from watching my MarketEye share prices screen and the performance of my personal pension scheme's shareholding in Falkland Islands Holdings (FIH). The company has retailing, shipping, port services and other interests in the Falklands.

I first bought FIH shares in May 1998 for 190p each. In January this year the price was much the same - although over the years the price has been erratic. Soon after had I bought the shares, they dived and were at 58p in February 1999.

In June this year FIH shares were at 270p. Investors had probably been attracted to this Aim-listed company by its February announcement on the progress of its joint venture with Cambridge Mineral Resources and Global Petroleum. Finance had been arranged for an aeromagnetic survey and other work in connection with minerals exploration in the Falklands. Earlier work by the joint venture had identified "a number of areas which are thought to be prospective for gold".

Investors might also have been interested in FIH's announcement in May about its purchase of 21.6 per cent of the Portsmouth Harbour Ferry Company "as a long term investment". FIH stated it had been "looking to diversify its activities outside the Falkland Islands".

On June 23 FIH announced its results for the year that ended on March 31 this year; pre-tax profits were £847,000. A separate announcement that day gave details of the formation of a new oil exploration company, Falkland Oil Gas Limited (FOGL), "set up together with Global Petroleum and funds managed by RAB Capital".

FOGL and Hardman Resources would invest in further offshore exploratory work in the Falklands. Seismic data had earlier identified a "number of leads in water depths of 400-1,850 metres" with "the potential to contain 200m to 2.5bn barrels of oil". It was intended to eventually seek a listing on Aim for FOGL.

On the day of these announcements FIH's share price closed at 287.5p. Then began a steady climb, so that by July 28 the share price was 361.5p as FIH announced that it had increased its stake in Portsmouth Harbour Ferry to 26.4 per cent.

I contemplated selling some of my FIH shares to "lock in" some profits - but decided to hold on.

At FIH's annual meeting on August 4 the chairman, David Hudd, stated that the "analysis and modelling of the onshore aeromagnetic survey for minerals" was nearing completion and "initial results" were encouraging with "over 20 possible drilling targets". These were being evaluated, a drilling programme was being designed and would commence later this year.

FOGL's work was "proceeding on the design of a 2D seismic survey of the offshore areas of interest."

FIH's shares were now 354p. Then they began to climb again. By August 20 the shares were 445p and FIH announced further developments at FOGL: a seismic survey was "expected to take place in the upcoming December quarter" and FOGL planned to raise "up to £10m through the issue of new FOGL shares".

Again, I thought of reducing my holding. But it was not until August 26 that I sold enough of my FIH shares, at 537p each, to recoup my entire outlay on FIH so my remaining shares have effectively cost nothing.

On September 14, FIH announced that FOGL (in which FIH has a 28.9 per cent stake) planned to raise "up to £12m" through a placing and public offer of shares. Assuming this is successful, FOGL expects to list on Aim some time next month.

I hope FOGL will perform well and that my remaining FIH shareholding will not be like a rollercoaster where all the "ups" are followed by "downs".

Kevin Goldstein-Jackson in an active private investor. he may have a financial interest in any securities or trading strategies mentioned. (FT)