Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

The Falklands Drilling campaign is about to begin – a buy signal

By Chris Oil

1 February 2015 03:32

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The Falklands drilling campaign is about to start for Rockhopper Exploration (RKH) and for Falklands Oil & Gas (FOGL). Location maps show that the Eirik Raude rig was travelling on Friday afternoon around the Ivory Coast.

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Comments

wildrides

1 February 2015, 04:21

Yeah but…………………….. its 50% COS .
Take a flight to Vegas and play roulette for a couple of weeks and enjoy a good holiday . Same odds betting RED or BLACK . No one wants the oil …………. its miles from anywhere and as for any gas discovery ( yawn ) the capex just does not configure economically .

My quess is that for you to tip this you must be so deep under water you need cylinders of mixed gases because you getting narked . The fact that you own the shares already is noted.
Andrew Kennedy

1 February 2015, 06:36

Hi Chris,

What do you think is the current FOGL stake of Sealion worth in terms of SP, which could be seen as the downside should the drilling campaign prove unsuccessful?

Thanks

Andy
alcira16247

1 February 2015, 11:49

Chris

I would argue, presently with the recent slide in oil stock values, why take the risk, investing in high risk exploration ventures like Rockhopper or Falkland Oil & Gas? After all, it will be another few years till they actually begin to drill the stuff out, assuming they find commercial quantities. And if there are the huge commercial finds, what about the political risk? Will the Argentinians really stand back and do nothing, while we ‘pinch their oil’?

No, Chris…..I’m going mega cautious and investing in existing producers, fully funded 2015/16 capex, break even crude prices circa $20, together with mega strong balance sheets and cash rich ….. such as SOCO (cheap as chips!).