Share help/advice needed on Falkland oil and gas.

[Leekbrookgull]

FOaG have seen their share price drop to just 28p from a high in 2010 of around £2.70 with no drilling expected until late 2014 (?) it seems some of the heavy equipment down there is shared with other prospecters' FOaG are just surveying in the meantime,however Wiltshire based firm Rockhopper exploration claimed to have found sizable oil reserves off the Falklands in 2011 i have included a Telegraph report and wonder can someone make sense and advise on it a small investment say £250 would buy you around 750 shares now the question is are they worth a punt ? Fully understand this could be a longterm investment. http://shares.telegraph.co.uk/fundamentals/?epic=FOGL

 

[Chicken Runner61]

Any Falklands oil share is a punt, better to take a shot when they are in the 15-20p range because they can drop like a stone when in £'s.

Take a look at Desires history if you want to see the highs and lows of a punt in this area. Whilst Rockhopper have had some good reports all the fields in that area could prove just as rich as they are all so close. I'd look at all of them carefully including Argo but all are punts, What you are looking for is a takeover by someone like shell/bp after a real discovery I seem to remember Shell finding good results in the 80's but then it was too difficult to get to.After the falklands war I was certain that we would find and get significant oil there in the next 40 years so I'm slowing running out of time and I'm now worried that the US will muscle in via support for Argentina if something is found. With doubts about Saudi reserves and the mess in the middle east spreading to Libya they are not going to let massive oil fields closer to home should they be proved.

You might find better speculative punts in Africa or Italy

 

[Leekbrookgull]

Was thinking serious long term buy now and put along side/will house deeds that sort of thing.

 

[Chicken Runner61]

Was thinking serious long term buy now and put along side/will house deeds that sort of thing.

IMHO you would be wasting your time unless you watch these shares regularly and take the profit whenever you can. If any of these do strike they will need the big companies to come in and help them so they will get bought out thereby the chances of them becoming a long term asset is unlikely. Desire have spunked loads of shareholders dosh several times across the fields they own. A while back it was rumoured they would have to sell to Rockhopper.

Good Luck whatever you choose

 

[Leekbrookgull]

Interesting article. http://www.ft.com/cms/s/0/eb30625c-2c23-11e3-acf4-00144feab7de.html#axzz2iHdg8SzY

 

[Charlies Shinpad]

Better off putting a few quid into Babcock they have promised there investors 10% profits per year

 

[Bugs Hill]

Interesting article. http://www.ft.com/cms/s/0/eb30625c-2c23-11e3-acf4-00144feab7de.html#axzz2iHdg8SzY

Yes very interesting, and announced at the beginning of the month so already factored into the price. I think the decision to acquire Desire Petroleum plc and the potential plans to farm-out some operations to Premier Oil and Rockhopper, are good moves for FOGL and offers a good consolidation. Additionally, the enlarged company will have $170m of cash which is more than adequate to fund the drilling of the next 5 wells through to the end of 2015 without having to raise funds.

However, I agree that at the moment this is very much a punt if you are looking for a long term investment. There is clear potential upside but also still a significant risk that it could become worthless. The last 2 failed drillings saw the share price plunge from around 90p per share to ~60p and then to ~30p. Both drillings found gas rather than oil, which is much harder to market from that location.

Only invest what you can afford to lose, expect a bumpy ride and be prepared to trade the peaks and troughs rather than just look for the long term investment. I bought into this a couple of weeks ago when it dipped to 27p, but I trade shares on a daily basis, rather than looking for long term investments.

My view is that there will be opportunities to take profits when the share price fluctuates over the next 12 months, probably fuelled by the normal positive rumours ‘leaked’ by workers on the platforms, but you need to be monitoring constantly to take the opportunities as they arise. Additionally, of course, there may be the prospect of it being acquired by a larger concern, or perhaps of getting the big oil strike which it has been seeking.

All very much my own opinion, so do your own research.

- Just hope it’s not another Beach Hut - Pipex!!

 

[seagullsovergrimsby]

Another thing to bear in mind is earlier this month Rockhopper were sent a $296M capital gains tax bill by the Falkland Islands Government which was four times more than what was expected. Investors have become wary.

 

[Leekbrookgull]

Bugs,i read the article,did you actually read it ? You see when i hit the link it goes to the subscribe page.