Business
Re FOGL - Licence Update
Re FOGL - Licence Update.
About this update from Fih Group Plc
[{"type":"text","content":"\n RNS Number : 4537T Falkland Islands Holdings PLC 28 September 2010 \n \n\n28 September 2010\n \nFalkland Island Holdings plc \n(\"FIH\" or \"the Company\")\nFalkland Oil and Gas Limited - Licence Update\n \n \nFalkland Islands Holdings Plc ('FIH') the international services Group, which owns essential services businesses focused on transport and logistics notes the announcement today by Falkland Oil and Gas Limited, regarding an update on its licence area and operations.\n \nThe text of today's announcement by FOGL is shown below:\nFalkland Oil and Gas Limited\n(\"FOGL\" or \"the Company\")\nLicence Update\nFOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, announces certain changes to its licence arrangements with the Falkland Islands Government.\nNorthern licence area\nDue to the tight rig market it is increasingly unlikely that the next phase of the drilling programme will commence in 2010 as required by the current terms of the licences. Following recent discussions, the Falkland Islands Government (\"FIG\") has agreed to extend the first phase of the northern 2004 licences by one year, so that they will now expire on 15 December 2011. No additional work obligations or acreage relinquishment will be required in respect of this licence extension and the existing Phase 1 work commitments remain unchanged.\nSouthern licence area\nSeparately, BHP Billiton has advised FIG and FOGL that it has elected not to enter the second phase of the southern 2002 licences which commences on 3 December 2010.\nFOGL believes, based on the drilling results from the Toroa well analysed to date, that these licences are still prospective. Furthermore, we are still awaiting the analysis of some key well data and these results are now expected to be available in October. FOGL has identified a number of prospects and leads which may prove to be of interest, particularly in the event of drilling success in the deepwater area of the northern licences, or in the south, where the licences are contiguous with acreage held by Borders and Southern Petroleum.\nHaving fulfilled all the work obligations of Phase 1, FOGL has therefore decided to enter the second phase of these licences. This will entail the drilling of a single exploration well by...