Why You Should Buy Falkland Island Oil Shares.

I don't claim to be an expert on the stock market, nor am I a stockbroker, but even I can see that a very good investment right now would be to buy as many Falkland Island Oil & Gas shares as you can afford. My parents have both recently invested in some Falkland Island Oil & Gas shares, and already the shares have gone up by a significant amount. This hub is to explain to you why buying these shares is likely to be a very profitable investment, especially if you do so before February 2010, at which point there is an excellent chance the share prices will shoot through the roof.

20 years ago, geologists confirmed that an oil field the size of the North Sea lies off the coast of Falklands. Scientists believe there is an estimated 60 billion barrels of oil under the Falkland Islands coastal waters. The estimated amount of oil has already led to the British financial sector pouring around £327 million into the off shore projects.

Testing a well drilled by Shell ten years earlier, British firm Rockhopper Exploration (LSE: RKH) discovered a vast natural gas deposit – one that may even be as big as 7.9 trillion cubic feet. And with oil majors looking to return to the Falklands now that oil is no longer only $10 a barrel, this remote region is suddenly a hotspot for oil exploration again.

Oil companies had last drilled in the Falklands in 1998, but stopped when wells were not seen as financially viable because of low oil prices. That situation has changed and drilling for oil in the Falklands now makes economic sense because of the current highoil prices.

David Hudd, chairman of Falkland Islands Holdings and vice-chairman of Falkland Oil and Gas, told The Sun Newspaper: "The benefits are potentially huge for the companies involved, the Falkland Islands and for Britain ."

Currently the world's biggest oilfield is Ghawar in Saudi Arabia. Ghawar is thought to contain 80 billion barrels. The largest oilfield in the North Sea is Forties , which has five billion barrels.

Falkland Island Oil and Gas Share Prices from 01 March 2009 to 01 January 2010.

Falklands Oil and Gas has secured the backing of resource giant BHP Billiton. Initial drilling is now planned in the North Basin for the first quarter of 2010. With an already affluent population of about 3,000, Falklanders are now anticipating a windfall that could make them one of the richest populations on the planet.

*****

Two wells were drilled on Rockhopper licences during 1998 by Shell, who held the licences at that time. One recovered live oil, the other encountered significant quantities of gas. Rockhopper raised £50 million by way of an equity placing during late 2009 and will now participate in 5 wells during a drilling campaign in 2010 using the Ocean Guardian.

*****

Heated talk in private investor chatrooms is that the Falklands will prove to be one of the last great frontier oil provinces of the world, a region so rich in hydrocarbons that it might eclipse the UK's North Sea oil and gas bonanza.

Falkland Islands Map

Petroleum Summary

This is a petroleum province in its infancy;

There are several under-explored and undrilled basins;

The Falklands have a world-class source rock;

Several working petroleum systems have been proven;

Only 6 wells – all in very small area – all tested same play;

Live oil has been recovered to surface;

There are numerous undrilled targets > 200 MM bbls;

The Falklands have top quartile fiscal terms;

New licences and farm-ins are available;

The Falklands promote easy data access;

There are benign drilling conditions.

*****

Information courtesy of www.bgs.ac.uk/falklands-oil

Falkland Oil share prices doubled in 2009 as the prepararations began to start drilling in the East Falklands Basin during the first half of 2010.

The company Desire Petroleum (DES) is expected to embark on a drilling programme in the Falklands in early February 2010 after announcing the departure of its Ocean Guardian rig from the Cromarty Firth in Scotland in early December. So far it has agreed a deal with its exploration partner Rockhopper Exploration to sell on two option wells in the region. Explorers such as Borders & Southern, Rockhopper and Falkland Oil and Gas (which is up around 45% since tipped by moneyweek.com in July 2009) are raising money to fund drilling programmes expected to start in February 2010.

Early in February 2010 the towering frame of the Ocean Guardian drilling rig is due to arrive. An anchor-handling tug and a platform supply vessel are on their way. Due to dock in Port Stanley in the next few days are two cargo ships carrying 14,000 tonnes of equipment.

A storage yard is under construction, modular office buildings are being assembled, helicopters are arriving to ferry rig personnel to and fro, and the helicopter re-fuelling facility at Cape Dolphin – last used during the previous round of oil drilling in 1998 – is being restored.

There is a sharp sense of anticipation and excitement in the Falkland Islands. Within a few short months their future could be transformed. It all depends upon whether that oil, so often speculated about, can now be found.

That this could be one of the biggest investment stories of the year is no secret. Bold investors have been placing their chips on the table for the last two years.



Falkland Oil & Gas Prices Nov 2009 to Jan 2010

About the Falkland Islands.

 The Falkland Islands comprise some 340 islands, located approximately 480km from the nearest point in South America. The two largest islands are East and West Falkland. Stanley, the capital, lies on the eastern shore of East Falkland. The total land area covers approximately 12,000 sq km.

The islands have no indigenous population and the current population of approximately 3,000 is predominantly of British descent, some 2,000 of whom live in Stanley, the only town.

Government  

The Falkland Islands are an oversea territory of the UK. Her Majesty Queen Elizabeth II is the Head of State and is represented by the Governor who presides over the Government of the Falkland Islands and is advised in the exercise of his functions by an Executive Council of three of the eight elected Legislative Councillors and two ex-officio members (the Chief Executive and the Financial Secretary).

The democratically elected Legislative Council has legislative powers, but responsibility for defence and foreign affairs rests with the British Government.

 

The Big Four Falklands Oil Shares

Desire Petroleum (LSE:DES): Desire holds licences in the shallow waters of the North Falklands Basin. It has contracted the Ocean Guardian drilling rig. It expects to drill four wells, starting in February. Evaluation of its top ten prospects has indicated prospective recoverable resources of over three billion barrels (boe).

Rockhopper (LSE:RKH): Rockhopper is the largest licence holder in the North Falkland Basin. It has indicated a possible 4.3bn boe in its licence area. The Ocean Guardian will drill two wells on its wholly-owned blocks.

Borders & Southern (LSE:BOR): Borders & Southern holds a 100% interest in five production licences in the South Falkland Basin. It has been cagey about how much oil could be here, referring only to “multiple targets”. The biggest of these could contain over 1bn boe. It has also alluded to the contiguous Malvinas and Magallanes Basins to the west where discoveries of six billion boe have been reported.

In November Borders & Southern raised £113m, enough to finance the drilling of three wells. It may yet bring in a partner and it has also hinted at “sharing with other operators in the region”. This is likely to mean Falkland Oil & Gas. This is partly because Borders & Southern‘s licences are in the deep waters to the south, but also because Desire and Rockhopper have already secured their rig.

Falklands Oil & Gas (LSE:FOGL): Having brought in BHP Billiton as a partner, FOGL has an interest of only 49% in its licence areas. But these areas cover an expanse the size of 223 North Sea blocks – more extensive than all the other licences put together. The joint venture plans to use the Ocean Guardian to drill one well at one of the shallower points of its acreage. But the licence areas are predominantly deep water. To drill here it needs to hire a dynamically positioned drillship or semi-submersible, which it hopes to do later this year.

The real attraction of FOGL is that it claims to have much more oil than the others – a total of 60 billion boe, with its top 20 prospects holding over 30bn boe. For that reason FOGL is perhaps the share with the greatest potential.

The important point for investors is that if any of the wells to be drilled this year strike oil, the impact is sure to be felt on the share prices of all the four quoted explorers.

I visited Port Stanley in the Falkland Islands last year, and during our tour talking to the locals it became very apparent that they are truly excited about the oil they have within their waters. These islands may well hold the potential to make a great number of people very rich indeed, but of course, the best time to invest is now, before they start drilling and the oil is pumping, at which point the share prices will no doubt go sky high very fast.

More by this Author


Comments 42 comments

diogenes 6 years ago

Well (ahem) Cindy, I thought I had an eclectic focus, but I am a mere puling youth when compared to you. The only thing that makes me nervous about that area is having Argentina so close and Britain being perceived as the weak man of Europe if not the world. Certainly this government would do nothing to protect investors...ain't got any bread anyway! Great article as usual...Bob


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

I know where you are coming from Bob, but if they interfere we whooped their ass once, and no doubt we would do it again. Glad you enjoyed the article :)


Ben Zoltak profile image

Ben Zoltak 6 years ago from Lake Mills, Jefferson County, Wisconsin USA

Ha, Misty, regarding your response to Bob, I like your spirit!

I sure wish I had some dough to invest in this, as you point out in your well researched article, the Falklands look like a goldmine. What are current shares at? $175 per? Maybe if they hovered around $10 per I could afford a few!


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Ben,

When I last checked them they were £1.62 per share approx, so you can definitely afford a few as they are far less than $10 right now, (the US equivalent of about $2.64 per share).

Thanks for stopping by :)


Storytellersrus profile image

Storytellersrus 6 years ago from Stepping past clutter

Hey Misty, since when are oil prices high? My husband and I would like to know, considering we have been in the oil and gas business since the early 80s, lol!

I read bits of this to my husband. He is working on an oil play in Argentina. Hard to write off anything in that area, but we are not familiar with it so we will pass.

Good luck! We will keep an eye on it.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Storytellersrus, well looking at my research oil prices for today they are at around $77 per barrel, which makes it viable to drill for oil in the Falklands as this is a lot higher than the $10 a barrel it went down to in 1998 when it was decided it would prove too expensive to be worthwhile based on the stockmarket price.

You should look into it before being too keen to dismiss it though. I would hate you to be kicking yourself later if the prices rocket as looks likely, (well worth getting "familiar" with I reckon, but it is obviously up to you and your Husband to make the decision you feel comfortable with).

Thanks for commenting :)


Paradise7 profile image

Paradise7 6 years ago from Upstate New York

Interesting hub and definitely worth thinking about, thanks for a terrific job researching. More power to your parents for getting in on the ground floor, and hope it works well for them.


BristolBoy profile image

BristolBoy 6 years ago from Bristol

There is a lot of natural resources in them there islands. Think there are also considerable gold deposits and other rare and expensive natural resources. Maybe it partly explains the Falklands War.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Paradise, well, so far so good. My parents are still well up on their investment although they only got involved very recently or they would have been far better off still. Talking to them tonight they are still really optimistic about the shares based on what they know and what they see happening day to day.

Hi BristolBoy, yes there is gold too, although my parents have not invested in that yet. I am fairly certain, (no, actually I am certain), that the only reason Argentina are interested in the Falklands is because of the potential revenue from the oil, but the good news is that apart from us having retained our Falkland Islands once already after they tried to invade, they have little or no Navy, so are very unlikely to get anywhere if they try again, plus this time we are ready for them and half expecting it!!


jayjay40 profile image

jayjay40 6 years ago from Bristol England

I think BristolBoy is right the Faulkland war makes a lot more sense now we know these resourses are there. A very well written hub mistyhorizon2003 with some thought provoking issues_well done


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Jayjay, yes I am certain he is right too. Glad you enjoyed the hub and thanks for the feedback :)


smartinvestor 6 years ago

I guess if you claim your parents having recently purchased some stock are already in profit then I have to assume that they have also already sold out. "a profit isn't a profit until it's banked"

PS. I hate to spoil the party but there is no gold in them there FI bogs I'm afraid as the company that had the rights to conduct surveys and licences to test for various precious mineral deposits, pulled out a few years back after drawing a blank. (cannot remember their name off hand but google it and see for yourself)


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hello Smartinvestor,

If they sold today they would be in a good deal of profit, and no they haven't sold their shares as that would seem rather silly whilst the prices keep rising as they have done overall for the last two years. They intend to wait until the oil is flowing when the prices will no doubt rocket before they considering selling, (naturally this is still a gamble, but one they consider worth the small risk). So if technically you want to count only "sold" shares as profit then they haven't physcially made it yet, or the other way of looking at it is that currently their money is in the form of shares that are worth "X" amount. How is this different to investing your money in any bank account,when that bank may crash at any second like many have done, therefore any normal bank interest (and your original capital), is lost, even though all the time the money was in the bank you considered you were "in profit" because of the interest being accrued?

Not sure about the "gold" situation, but I am fairly sure I was told you can still buy shares in Falkland Island's Gold, therefore I have to ask is it possible that the apparent lack of gold is still disputed?

Thanks for the comments.


beekay 6 years ago

No, there is no gold (at least not in commercial quantities), the company in question was Falkland Gold & Minerals. They pulled out a few years ago, and reversed into a company exploring for oil in the Bahamas called BPC which is currently trading on the AIM market.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

An interesting article regarding oil and gas in 2010 I read today went as follows:

In just over a decade, the Falkland Islands - with its rich oil reserves - has transformed itself into a hotbed for London's leading oil explorers.

In 1998, the British-ruled territory was considered to have poor hydrocarbon reserves, and the North Falkland Basin had just six wells under its belt, all of which were plugged and abandoned.

Fast forward to 2010 and an estimated £327 million has been ploughed into offshore projects as British-based companies clamour to get their hands on the territory believed to hold up to 60 billion barrels of oil.

While oil prices were just $10 a barrel in the late 1990s, today it has a price tag of almost $75 a barrel and the stakes are a lot higher.

The region, split into the North and Southern Basins, has attracted the attentions of Desire Petroleum (DES), Rockhopper Exploration (RKH), Falkland Oil and Gas (FOGL), Borders and Southern Petroleum (BOR) and, most recently, mining heavyweight BHP Billiton (BLT).

Rockhopper Exploration and Desire Petroleum have become the two principal operators of the North Falkland Basin, while its fellow oil producers concentrate on tackling the South Basin.

David Hart of WestHouse Securites, says that while the Northern Basin lacks the expanse of the South and East Falkland Basins, he believes "reserves in the hundreds of millions of barrels of oil can be reasonably expected."

Rockhopper Exploration, first admitted to AIM in 2005, was attracted to the acreage as it was deemed relatively low risk in exploration terms, with both proven oil and gas.

After raising a hefty £50 million in October 2009, Rockhopper - which owns a 100% interest in Licences PL023, PL024, PL032 and PL033 and has farmed-in to Licences PLO3 and PLO4 - is now bracing itself for the "most exciting period" since its inception.

It has teamed up with partner Desire to embark on a drilling programme starting this month, after securing the Ocean Guardian rig from Diamond Offshore Drilling.

While the terms of the contract are for a four well, eighty-day campaign, operator Desire retains the option to drill a further six wells for itself or its partner.

Since announcing the securing of the rig, Desire's share price has climbed steadily, rising as much as 27% in the last month. Rockhopper enjoyed similar success, rising over 18% throughout January.

Hart of WestHouse Securities, adds: "Clearly, 2010 is a big year for the North Falkland Basin explorers and we expect a steady diet of drilling news beginning in February. Having studied prior drilling data and numerous technical studies of the region over the years, we believe the two companies are now ideally placed to pursue a successful drilling programme assuming the geology works.

"Despite the raised awareness of the two groups' intentions, both are still substantially undervalued according to our valuations."

In the more daring south of the region operates Falkland Oil & Gas and Borders & Southern Petroleum.

The South Basin possesses a single rich source rock which spreads across the entire Southern Basins, from the Magallanes Basin in Argentina to the Maurice Ewing Bank some 800 kilometres east of the Islands. However, it poses a greater risk to explorers and shareholders alike due to the fact it has not yet been penetrated and remains in the very earliest stage of exploration.

Nevertheless, while Rockhopper and Desire have a lower risk profile, the rich resources of the Southern Basins mean Borders and Falkland Oil and & Gas could be faced with greater opportunities should their drilling activities come up trumps.

Fox Davies Capital believes said that there is a "fair chance of success in the 10 or so wells that will be drilled in 2010/11".

Falkland Oil & Gas is to embark on a drilling programme in the southeast of the region in April, along with partner and mining heavyweight BHP Billiton - which farmed in for 51% in 2009 - and has an option on the third drilling slot on the rig commissioned by Desire and Rockhopper.

Falkland Oil & Gas's shares have doubled during the course of 2009, leaving the company worth £228 million and shot up 21% in January alone.

Just as recently as November, Falkland Islands Holdings netted a handsome £3.1 million profit after offloading three million shares in Falkland Oil and Gas proving the company's growing worth.

Finally, Borders, which holds a 100% equity interest and operatorship of five production licences covering an area of 20,000 kilometres, is expected to start drilling towards the close of the year.

In January 2009, the company announced an initial review of its 3D seismic interpretations which, it said, highlighted three principal play fairways.

"Within these play fairways, multiple prospects were generated that, in common with analogous geological settings, could deliver in the success case multi-billion barrels of total recoverable reserves," Lionel Therond of Fox Davies Capital notes.

"We believe that the presence of companies such as BHP and Petrobras as farm-in partners respectively with Falkland Oil & Gas and across the Argentinean border in the Malvinas Basin to the West with Repsol, emphasise the attractiveness of the whole area," Therond added.

All four of the AIM-listed Falklands-focused groups have outperformed the AIM Oil&Gas Index over the last five years, as greater exploration opportunity helped to drive share prices higher. While they temporarily faulted in the second half of 2008 as the onslaught of the financial crisis took its toll, they were back on form by the start of 2009 and have gained 40-60% over the past three months.

With such success under their belts, 2010 could become a bumper year for the oil explorers.

Article courtesy of : http://www.iii.co.uk


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Thanks for the information Beekay, well worth knowing. Guess we will have to stick with the oil and gas then, but that looks good enough to me :)


Paul 6 years ago

They will be drilling the continental shell/platform of Argentina, do you think they will allow this? No way, this is a hiGH RISK investment


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Well only time will tell, but the rising share prices seem to indicate plenty of confidence from the investors. Also I refer back to the fact the Falklands are owned by the British Government, no matter what Argentina claim, and the last time they tried to take over the Falkland's by invading, we quickly re-secured the islands. To be honest I am not sure what Argentina CAN do about it with little Navy to speak of!


Paul 6 years ago

Several of the biggest oilrig targets are deep inside Argentina's continental shell...I dont think the UN will remain in silence if Argentina protests. That issue is covered by many treatments signed by both Argentines and British about Economic Exclusive Zones...

Do you think the Navy will act regarding private holdings matters? Do you think Argentina is like Irak, where you just can go and take whatever you want, as USA and GB did, following oil revenues? I think you are dangerously confident...by the way, Im brazilian, and as far as I know, my country, one of the biggest economies of the world, and on its way to be top five, is a Strategic Commercial Partner to Argentina.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Well, like I said, let's wait and see. By the I am neither from the UK or the US, in fact I am from the Channel Islands, a not dissimilar set up to the Falklands, only we are off the coast of France not Argentina. We too are self-governing.

From what I am reading online it seems the continental shell claimed by both Argentina and GB overlap,

"The U.K. and Argentina have overlapping claims around the Falklands and have clashed over territorial rights at the United Nations. The U.K."

Quoted from http://www.tdwaterhouse.co.uk/news/newsitem.cfm?ne...

Also:

The ongoing conflict of ownership of the islands between the Argentine and British governments, however, means that Argentina’s claims will have to be shelved by the CLCS until the dispute has been resolved. Where a disagreement exists, the Commission’s policy is to “decline to examine any submission which would prejudice delimitation [between states]”."

Quoted from:

http://www.theargentimes.com/currentaffairs/newsfr...

Anyway, my personal opinion is irrelevant, it is down to the individual to decide whether they want to take a risk on these shares or not. It seems a great deal of people are willing to do so looking at the share prices.


HollywoodRasta profile image

HollywoodRasta 6 years ago from Hollywood

Nice! Great post.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Thanks Hollywood :)


Almo73 6 years ago

For mistyhorizon2003: Was out surfing the net about investing(very new to the trading sceen) and came across your article. WOW. Well done. Since reading it I have been all over doing my DD. But still missing one thing. No matter where i go all tickers point to a company i can't afford. you mentioned to "BEN" that they are around 2.64(us). Would you mind mentioning the ticker you refered that to! Thank you in advance ALMO73


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Almo, like I said, I am not an expert in this field, but I assume by "Ticker" you mean the site where this info was quoted on price etc, (let me know if you meant something else). Anyway, the sites you might find useful are:

http://www.fogl.com/ (Current price shown on top right hand side of page).

and possibly

http://www.iii.co.uk/quotes/?searchterm=Falkland+&...

All prices shown on both the above sites are in pence, NOT pounds e.g. 152.75 per share, means £1.5275.Hope these are what you need.You might also find the following currency converter site useful as you can enter the price in pounds and convert it to dollars at the current exchange rate:

http://www.xe.com/ucc/

Thanks for commenting too :)


midnightlady 6 years ago from Halifax

Is there any more tips


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Midnightlady, well another one proving popular in the same area right now is 'Desire Petroleum'. That is about all I know right now I am afraid.


Almo73 6 years ago

hi mistyhorizon2003. You have been most helpful, once again. The true lesson was the difference between pence and pounds! took a little to understand and convert to canadian dollars but I'm understanding and I'm in. Looking at the oil companies more indepth (DD) and their locations(north/south). Falkland Island Holdings (Public, LON:FKL), What are your (anyones) thoughts on this one. Company deals with logistics for the Islands.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Glad to be of help Almo73, you might find using the currency converter site I link to in my post earlier will make it easy for you to convert Pounds to Canadian Dollars as the currency converter can be set to convert and currency to any other currency, (simply choose from the drop down lists).

Can't offer much more advice on your other questions I am afraid, as I am not an expert and simply going on my parents experience so far, and they are both well up on the share values even before the oil is being pumped. My parents have invested in Falklands Oil and Gas Limited (FOGL), but Desire Petroleum seems to be doing very well also and is being discussed a lot on forum boards etc.

I guess from here a stockbroker might be able to better advise you, or you could take a look at one of the sites like http://www.iii.co.uk/ and see what they are saying on the site and on the forums etc.

This forum is interesting and talks solely about the Falklands, so your questions might well be covered by the topics if you go through them:

http://www.iii.co.uk/community/?type=hottopics&top...


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Just a quick message to Paul from Brazil, who posted 2 weeks ago saying:

"Several of the biggest oilrig targets are deep inside Argentina's continental shell...I dont think the UN will remain in silence if Argentina protests. That issue is covered by many treatments signed by both Argentines and British about Economic Exclusive Zones...

Do you think the Navy will act regarding private holdings matters? Do you think Argentina is like Irak, where you just can go and take whatever you want, as USA and GB did, following oil revenues? I think you are dangerously confident...by the way, Im brazilian, and as far as I know, my country, one of the biggest economies of the world, and on its way to be top five, is a Strategic Commercial Partner to Argentina."

Well Paul, I have to say it is nice to see Brazil are actually involved (or at least a major Brazilian Company) in the oil drilling process in the Falklands now. I guess that at least solves any issues over their loyalties!


Springboard profile image

Springboard 6 years ago from Wisconsin

Enjoyed the analysis, though I might only add as a guy who invests regularly that speculative investments, and that's exactly what this is, is very risky. So risky that 1) you should not be willing to put down any money on an investment like this you are not fully ready to lose and 2) certainly one should have at least a basic knowledge of stock markets, investment terms, and in the case of the Canadian investor, understanding that foreign exchange rates can dramatically increase one's risk exposure. If you are trading in foreign shares, you best have a very good understanding of not only the market you're investing in (oil as commodity) but also in the state of the currencies of both the country you are investing in as well as the country you are investing from. There are often times foreign tax implications to consider as well.

I'm not trying to discourage anyone. But honestly, if you don't know much about the stock market, you are much better off spreading your risk by investing in say a mutual fund or similar product, depending on what your country of origin offers.

Putting your life savings down on any investment is not what even an expert investor or trader would do. Not in a million years. So, just be careful.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

Hi Springboard, I would not recommend ANY person put their life savings into any one investment, no matter how good it looks, that would be crazy. I like your advice in general though, it makes good sense and thanks for the comment :)


Almo73 6 years ago

Hi again mistyhorizon2003. Dont know if that last post from Springboard was directed at me or not, but if it was thanks springboard for your comment! Your right. As a new/young trader and very inexperienced I am, well thought, I was looking at every angle till you mentioned the tax implication. Words from the wise are always appreciated. But rest asure as I move forward in the trading world(Canadian) I only dip my toes into it to see how cold it is!

To dive in(life savings) never a good idea. Have been in touch, as suggested, with someone who has a knowlegde base of trading and whom does it regularly. Together we are looking into it. Not sure about the oil and gas company, but if they are successful what do you think about "Falkland Island Holdings". Springboard, i would be really interested in your thoughts. Thanks in advance!

And as you mistyhorizon2003!


annagaelle profile image

annagaelle 6 years ago from Brittany, France

Hello... Interesting hub. Perhaps you could do a hub about your trip to the Falkland Islands. I don't think many people get the opportunity to travel there and I would really like to know more about the islanders' way of life.


mistyhorizon2003 profile image

mistyhorizon2003 6 years ago from Guernsey (Channel Islands) Author

In all fairness annagaelle, I only visited for a day, so I am far from qualified to write a whole hub on the subject. I loved the people and the atmosphere, but that is really the limit of my experience.


sw1970 profile image

sw1970 5 years ago from UK

Hi - interesting but take a look at http://www.rockhoppershares.co.uk - the value of these shares is just not backed up in the media by detail. I'm not worried about Argentina at all; they won't cause a fuss because the worlds cheapest oil will be on their doorstep. Why buy from the Middle East or the US when you can buy it from nearby Falklands at a much lower price than elsewhere?


mistyhorizon2003 profile image

mistyhorizon2003 5 years ago from Guernsey (Channel Islands) Author

Thanks for the info sw1970. I am sure it could be very useful to any interested parties. FOGL shares took a bit of a knock when the first test drill site didn't find oil, but this was just one of many more to come. Unfortunately it will be some months before the 2nd test drill can take place in a new site now. At one point however the shares climbed up to around £2.50 a share, which was an excellent price to sell at for those who got in early. My Step Father opted to hang on to his shares though as even though he would have made a good profit at the £2.00 mark, he knows the potential is there for far higher profits if he plays the waiting game. I believe Desire petroleum have already found oil in their first test drill, so it is all looking very promising for the future.


ryankett 4 years ago

Mistyhorizon2003 - These will be a great long time investment, they have now found commercially viable oil.


mistyhorizon2003 profile image

mistyhorizon2003 4 years ago from Guernsey (Channel Islands) Author

I agree Ryan, my parents have hung on to their shares even when they could have cashed them in and made an excellent profit. They believe in the long term potential of the investment, and even with Argentina making protesting noises right now, the climate is different to how it used to be during the Falklands war back in the 80's. The Argentinians are only interested in the Falklands again now because of the oil potential, and they conveniently forget that the islands are inhabited by all British people and have been for years. It isn't like they are now trying to say, that the British are 'Conquistadors', as there are no native Argentinians as residents, and the British residents want to stay British!!


Ramsa1 profile image

Ramsa1 4 years ago from A citizen of the World

This seems very high risk to me. On principle I do not invest in companies which produce nothing. There are better companies to invest in today, companies which are profitable and which pay dividends.


mistyhorizon2003 profile image

mistyhorizon2003 4 years ago from Guernsey (Channel Islands) Author

Yes it is a risk, but they have now discovered oil so all is looking very promising apart from this woman Argentinian President trying to mark her territory (and gain popularity) by still claiming the islands belong to Argentina (in spite of the fact they are inhabited totally by British people who have been there for generations and want to stay British). All in all I think the risk factor is still good although not 100%, but then stock markets rarely guarantee a result, it is largely about fortune favouring the brave.


Ramsa1 profile image

Ramsa1 4 years ago from A citizen of the World

"this woman Argentinian President"? Do you mean like the woman British Prime Minister who went to war over Las Malvinas? Or,as you prefer, The Falklands? The Bitish occupied many lands and were driven out or left on their own, so I wouldn't be so sure that they would be in Las Malvinas forever. Or as you like to call it, The Falklands.


mistyhorizon2003 profile image

mistyhorizon2003 4 years ago from Guernsey (Channel Islands) Author

This isn't meant to be a political debate, but for what it is worth you have to remember that when Britain's woman Prime Minister went to war over the Falklands it was because they had been invaded,she didn't instigate the war. The islands have been populated by primarily British residents for a great many many years now, and they want to stay British. It is also a strange coincidence that the Argentinians have only just begun to show any real interest in the Falklands again since the discovery of oil there!!

Submit a Comment
New comments are not being accepted on this article at this time.
Click to Rate This Article
working