FOGL announced the Interim Results for the six months ended June 30, 2010.
Richard Liddell, Chairman of FOGL, said, "The first half of 2010 has been a period of great progress for the Company, in which we drilled the first well on our license area. Although the Toroa well did not encounter hydrocarbons, the results have helped to reduce some of the key risks on the other plays in our licenses.
"We look forward to continuing exploration in the deepwater area of licenses, once a suitable rig has been secured"
During the first half of 2010 the Ocean Guardian drilling rig was contracted and drilled the Toroa prospect, our first exploration well on the license area.
We announced on 12 July 2010, that the Toroa F61/5-1 exploration well had been drilled to a total depth of 2,476 meters and full logging operations had been completed. The well did not encounter any reservoired hydrocarbons and was plugged and abandoned. The well was completed within budget and without incident.
Further detailed evaluation of all the data gained from the well is now being carried out and an update on the results will be provided once all the analytical work has been completed.
In line with our license commitments, we are actively seeking a suitable rig for exploration drilling activities in the deeper water areas of our licenses. There are a limited number of such rigs available and despite a recent softening of the rig market, there is still considerable competition for the type of high specification rig required, which may extend our drilling program into 2011.
FOGL started the period with $93.5 million in cash, of which $11.3 million was expensed in the exploration program and $1.2 million used to cover administration costs. At the end of the period the cash balance was $80.4 million of which $11.7 million is held as 7.8 million Sterling. The loss before tax for the six month period was $2.1 million (2009: £3 million).
Exploration drilling will resume in the deepwater area of our licenses as soon as a suitable rig is secured.
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