Good Month: Falkland Oil & Gas

Resource prospector Falkland Oil & Gas (FOGL) is in ‘advanced discussions’ about bringing a ‘major resources company’ into its projects

One of the few companies whose share price has risen over the past month, AIM-quoted FOGL saw it soar from 80.5p to 123p in one day as it was prompted to disclose that it was in talks that ‘may or may not’ lead to one of the big sector players paying for future work, via a licence agreement, to use some of its resources or ‘assets’. After hitting a brief high of 168.5p, the shares have now fallen back to around 156p, still up 21 per cent on 30 days ago.

Tim Bushell, chief executive, reported encouraging seismic survey results from the company’s prospects in the South and East Falkland Basins, and these seem to have kindled interest. Meanwhile, the company’s backers – Falkland Islands Holdings (with 16.3 per cent of FOGL) and Global Petroleum (with 14 per cent) – have also seen their share prices rise.

All in all, the future looks encouraging for FOGL and its backers – as long as the current talks hook a big fish.