Agreement, Falklands Islands
& East Falkland Islands, FOGL Northern & Southern Area Licences
- June 2012
Stellar Energy Advisors is pleased
to announce the signature of an agreement between Falkland Oil and Gas
("FOGL") and Edison International with respect to exploration
licences in the East Falklands Basin.
The transaction comprises a number of elements that, when taken together,
represent a considerable investment by Edison International while ensuring
FOGL retains a substantial equity position in the licences:
will farm-in and earn a 25% interest in FOGL's Northern Area Licences.
Edison will contribute its pro-rata share of the costs of the 2012
drilling programme, comprising two exploration wells;
will farm-in and earn a 12.5% interest in FOGL's Southern Area Licences
and will contribute its pro-rata share of the 2012 work programme;
will also pay its pro-rata share of certain historical costs incurred
by FOGL during 2011 related to the 2012 drilling programme;
share of historical expenditures, together with its share of the
2012 drilling programme costs, are expected to be of the order of
addition Edison will make a separate cash contribution to FOGL of
order to obtain the option, Edison had already paid a $3million
anticipate further announcements shortly at the completion of other
successful transactions where Stellar has acted as the sole advisor.