Business
FOGL Announcement
FOGL Announcement.
About this update from Geo Exploration Limited
[{"type":"text","content":"\n Global Petroleum Ltd\n28 November 2007\n\n\n\n28 November 2007\n\n\n FALKLAND OIL & GAS LIMITED ANNOUNCEMENT\n\n\nGlobal Petroleum Limited advise that Falkland Oil & Gas Limited ('FOGL') has\nreleased an announcement in relation to the farm in by BHP Billiton in FOGL's\n2002 and 2004 licences to the South and East of the Falkland Islands. The full\nannouncement appears hereunder.\n\n\n\n\n\nMark Savage\n\nChairman\n\n\nTelephone: +1505 344 2822\n\nFax: +1505 344 2922\n\nEmail: [email protected]\n\n\nFalkland Oil and Gas Limited\n\nFOGL Partner increases interest in exploration agreement\n\n\nFalkland Oil and Gas Limited ('FOGL') is pleased to announce that BHP Billiton\nhas decided to exercise its option to increase its interests in FOGL's 2002 and\n2004 licences to the South and East of the Falkland Islands.\n\n\nHighlights:\n\n\n • BHP Billiton will increase its interest to 51% from the 40% announced on\n 2 October 2007\n\n • FOGL retains a very substantial stake in the licences\n\n • BHP Billiton will pay FOGL an additional US$2.75 million in\n reimbursement of historical costs\n\n • The decision by BHP Billiton to increase its interests in our licences\n further confirms our view of the significant petroleum potential of the\n South and East Falkland Basins.\n\n\nDetails of the agreement\n\n\nUnder the terms of the farm-out agreement announced on 2 October 2007 BHP\nBilliton had the option to further increase its interest in the licences. BHP\nBilliton has decided to exercise this option by increasing its interest to 51%.\nConsequently, BHP Billiton will pay four thirds of 51% (approximately 68%) of\nthe costs of the near term work programme, including the drilling of two\nexploration wells and all other associated work to the completion of this\ndrilling work. In addition, BHP Billiton will pay FOGL a further US$2.75 million\nin relation to certain costs already incurred by the company. At end 2007 FOGL's\nforecast cash position is £12.2 million (US$25 million). As such, FOGL is now\nfunded through a significant proportion of the near term exploration programme,\nwhich will include the drilling of the first two exploration wells.\n\nSince announcing the agreement with BHP Billiton, FOGL has had discussions with\na number of other parties potentially interested in farming in to the area. FOGL\nwill n...