Falkland Oil & Gas

I think a lot of people are pinning too much hope on a reaction to a farm in rns.

What are the possibilities? well in the main they swap rigs and resources in return for revenue sharing and/or a dilution in equity by the issue of more shares to the partner. Remember, the partner will want a large slice of the cake.

This is still a highly risky investment, albeit promising, but a lot of unknowns yet to be discovered after 2007.

What happens if they find billions of barrels of oil, but can't get it out of the ground due to the deep water, or the price of oil slips considerably that with the high cost of extraction it makes the whole project uneconomic, or the quality of the resource is not commercial .

Drilling commences in 2007 in their hotspots that will take over a year(+) to finish, then the BFS. Seeing that we just turned 2006 this is at the best 2 years before we have a better idea of the picture.

As for RAB and their investments, well they buy in at a fraction of the cost of us poor retail investors, e.g Asia Energy 5p, so they made a 15 bagger even before they list.