Would you have a cheeky punt on these?

quattro2

Hi everyone, been looking through some random blogs on stocks & shares & found FOGL (Falklands oil & gas ltd) as a very cheap buy, having read up on the news articles etc i've decided to buy a small amount of shares with them about 2.5% of my portfolio. What do you guys think?

Totton

May be worth a punt, I believe the shares fell heavily following some recent bad news, a quick look at a Yahoo chart shows the shares at a low - http://uk.finance.yahoo.com/echarts?s=FOGL.L#symbol=fogl.l;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

UsernameAlreadyExists

I bought some the other day.
Their price dropped like a stone (48% I think) on the announcement of a failed exploration.

Apparently they have more cash in Escrow than the MarketCap price of the shares (I think I read a report from thefool.co.uk ) ... so I have no idea why the price is still so low

I've caught some falling knives in the past though. hmmm

mania112

If they're going to keep exploring you'd imagine the price to rise.

Glen_Clark

They've been looking for oil & gas in the Falklands for as long as I can remember - at least 30 years. We know its there, but its never been found in commercial quantities. I have lost count of the number of times there has been an exciting find, but they have all come to nothing. Its happened so many times it has become monotonous.

The Falklands has been a dead loss for us all - except the Islanders themselves who are doing very well on taxpayer subsidies.
(Ironically When Thatcher asked how the Falklands could be run after the war she was told it was totally uneconomic and British Rule could only survive as heavily subsidized socialism, so quietly accepted it!! )

srcandas

Despite Glen's pessimistic view I think having control of a large lump of the southern oceans can only be good for the UK. However the payoff could come anytime over the next 100 years.

In the shortterm even if a reasonable deposit of oil or gas is found the distance and issues with neighbours will make it less profitable than might be.

Personally I hope Argentina gets itself together and that by the time profitable oil is made available we can work out a way of sharing it. Quite how that might impact an investment I'm not too sure. [Perhaps the argies would do to the Falklands company what they did to the Spanish and nationalise it ]

Back to topic I think as long as you are looking for a small gain based on some odd bit of good news then enjoy. As an investment I think Glen says it all :beer:

theGrinch

I think its risky, but my friend thinks they are great.

funscott

Xcite energy is where my money is. have oil, lots of it in a safe area (north sea) should be in production by 2014 as it has now been proven twice it is commercial. also at a near all time low.

quattro2

Hi, thanks for your views everybody & hopefully i'll get a little tickle off these shares at some stage. Good call on the xcite energy Ltd tip, may have a go with these too when i have some more money.

Glen_Clark

Questor doesn't like FOGL either: http://www.telegraph.co.uk/finance/markets/questor/9731577/Questor-share-tip-Falkland-Oil-and-Gas-shares-are-one-to-avoid.html

sabretoothtigger

Rockhopper and Premier are the safest ones as they already have the oil. PMO pays a div and there is a general falk company that pays one too

http://www.google.co.uk/finance?q=LON%3AFKL&ei=X-jFUOiMKKWowAORpQE


Holding alot of cash just before you spend it all on an oil drill that fails is not that valuable. If someone can summon the forum geologist for a proper opinion we can decide otherwise