The AIM listed company Falkland Oil and Gas Ltd reflected on Thursday on the progress made in the first half of the year when it managed a significant equity placing and negotiations for two farm-out deals which helped with a cash-balance of over 220 million dollars.
During the first six months of the year, FOGL raised £48.5 million via an equity issue and completed a farm-out deal for its 40,000 sq km licence position to the south and east of the Falkland Islands with the French-Italian corporation Edison International SpA.
FOGL is now in what it says is a key stage in its development with two wells, including the high-impact Loligo well that was spudded earlier this month.
“The board of FOGL looks to the future with confidence, having both the corporate partners and the financial and management resources to realise the value within FOG licences, offshore from the Falkland Islands,” the company told investors on Thursday morning.
In August, the company reached a second farm-out deal this time with the Texas based Noble Energy. FOGL will stay on as operator of the licences until early 2013 when operator-ship will pass to Noble.
In the interim report, FOGL also highlighted its “enviable” cash position of 220.7 million dollars at the end of June.
Chairman Richard Liddell said the first half of 2012 was a very significant period in the development of the business, with an equity issue raising gross proceeds of £48.5m in January 2012 and subsequent farm outs to Edison International and Noble Energy.
“FOGL is in the enviable position of having a very strong balance sheet, leading industry partners and the potential to realise value across our large acreage position in the Falkland Islands”, said chairman Liddell.
“We have entered into a very exciting phase for the business and our partners, commencing with the spudding of our high impact Loligo exploration well” underlined the FOGL chairman.