I've taken the opportunity in the past few weeks to load up on FOGL using a strategy that has worked very well for me in the past.
The strategy is to buy shares in advance of a drilling campaign before the market reacts to that campaign being imminent, no pun intended to EE ;) and to potentially offload PRIOR to any drilling results. Therefore not taking the drilling risk.
A rig has been procurred for a 6 well drilling campaign in the Falklands with drilling to commence probably in Q2 2015. There is also the option of a further 16 slots, 8 can be taken prior to mobilisation and 8 following mobilisation / when well results are known.
Out of the 6 definite slots FOGL will be participating in 5 of them.
Therefore it's my belief that the FOGL share price will increase by 40% plus in the next 6 to 9 months without a well being drilled. The shares have created a very firm base in the 24/25p range which is a very positive sign suggesting the shares are tightly held inferring any demand for the shares will have a large impact.
I'm therefore expecting an opportunity to offload in the 40's prior to any drill result. However anything over 20% return would be a good relatively low risk free return in this time period.
I have been doing the same. The movement in share price could be higher than you imagine. Last drill the share price doubled. And this time there is a heavy weight onboard. However I believe that it will not be until 2015 when you will see much movement in price.
Did you buy into TRP at 1.2p prior to last drill? It went to over 6.0p. Unbelievable.
