FOGL Reports Strong 2010 Results

FOGL announced Final Results for the year ended December 31, 2010.

Financial Highlights 

  • Invested US $21.8 million (2009: US $12.9MM) in the exploration programme, including US $19.7 million to drill Toroa exploration well
  • Loss before tax of US $3.7 million (2009: US $5.5 million)
  • Cash balances at December 31, 2010 of US $69.8 million

Operational Highlights

  • Toroa F61/5-1, the first exploration well to be drilled in the East Falklands Basin, was completed on budget and without incidents
    • The well did not encounter reservoired hydrocarbons and was plugged and abandoned
    • Data obtained provided encouragement on the presence of good quality reservoirs and source rocks within the East Falkland Basin and will inform future drilling plans
    • Results have no adverse implications for FOGL's deep water prospects
  • Twelve month license extension was awarded for the Northern License area
  • Negotiations are at an advanced stage to secure a suitable deep water rig
  • Site surveys commenced in February 2011 on a number of prospects, including two new prospects within the Mid-Cretaceous fan play

Richard Liddell, Chairman of FOGL, said, "2010 was a landmark year for FOGL in which we drilled our first well, the first exploration well ever drilled on the East Falklands Basin. We were pleased that the well was drilled on budget and without incident.

"Our focus is now on securing a suitable deep water rig to enable us to drill the large prospects we have identified in the deep water areas of our licenses. Rig contract negotiations are at an advanced stage and we will make a further announcement when appropriate.

"Meanwhile, we have commenced further work in order to broaden the range of potential targets for the deep water drilling program."