http://www.marinelink.com/news/engineering-contract376166.aspx .......................... On a separate note tfish is right ... never get too comfortable with any AIM holding ... However, this is certainly one of the more "comfortable" AIM oilers out there!
Really means, we haven't seen the 3D yet we think there may be more oil in the North Basin but the South may be more gas there than oil and it will be very expensive to get out plus difficult to sell, hence the slight downgrade to 45p. That to me indicates 35p but I would love to be proven wrong with a higher S/P. As to the TBushell statement this was careful not to ignite too much optimism but simply state facts.
FOGL getting back on the radar of a lot of PI's and rightly so with the action packed end to 2014 and 2015!
Tim Bushell, Chief Executive commented: "We are delighted to have secured a suitable deepwater rig. FOGL will be the only company drilling in both the northern and southern basins and will have by far the largest equity participation in this campaign. As such, this rig contract represents a major milestone for FOGL and will give our shareholders exposure to an exciting, high impact and fully funded, five well drilling programme in 2015."
Being smug angers the AIM gods. Be careful.
Canaccord Genuity oil sector research out today, here's what they say about FOGL :Falkland Oil & Gas (FOGL LN | BUY | 45p TARGET PRICE) Share Price Performance —— Falkland Oil & Gas —— Rel to FTSE AIM All-Share Source: Thomson Datastream Valuation Source: Canaccord Genuity Limited. TP based on NPV12.5, Falkland Islands exploration  Acquisition of Desire and farmout to PMO/RKH has given FOGL an exciting position around the Falkland Islands with carries and cash to participate in five wells in ’15 (two south and three north).  FOGL now has a slice of Sea Lion (southern extension) and extensive upside in nearby N.Falkland prospects in partnership with PMO and RKH, as well as more ‘blue sky’ potential to the south with partner Noble.  The commercial arrangements were supplemented by seismic to the south in ‘13/14, and ’15 will be a year of high impact newsflow. FOGL has carried out a series of farmouts and acquisitions to leave it well placed to test the potential of its acreage around the Falkland Islands in ’15. The north provides the smaller but lower risk prospects and we think that success there, where FOGL has 40% licence interest, could form part of wider farmout discussions conducted by PMO. South Falkland Islands present a tougher environment, much deeper water and worse weather, but previous drilling in 2010 & 2012 (3 FOGL, 1 BOR well) has found both good quality reservoir and source (though that appears to be more gas prone). Nevertheless, it is still very early in the exploration of a vast area, and the scale of the prospects and the hope for more liquids in any discovery merits another round of drilling. As the S.Falkland prospects are not yet identified, it is difficult to assess a total valuation for the programme, but at present we estimate net risked 54p/sh (300p/sh unrisked), but that is not included in the current target price (cash and share of Sea Lion Phase 2). We maintain our BUY rating, and look forward to a busy drilling programme in ’15.
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