Companies: FOGL   

Resource prospector Falklands Oil & Gas (FOGL) is in 'advanced discussions' about bringing a 'major resources company' into its projects.

AIM-quoted FOGL, where RAB Capital has a hefty stake, has been prompted by a 52 per cent share price surge to disclose to today's well-regulated market that it is in talks which 'may or may not' lead to one of the big sector players farming in to 'certain of its assets'. Tim Bushell, chief executive, recently reported encouraging seismic survey results from the company's prospects in the South and East Falkland Basins and these seem to have kindled interest in potentially useful quarters.

Shares in FOGL, commended as a possibly advantageous 'gamble' by Growth Company Investor at 99p two years ago and at 113.5p last year, have jumped 42.5p today to 123p, valuing the company at nearly £113 million. That is more than the 99.5p and 113.5p at which Growth Company Investor highlighted their speculative possibilities in 2005 and 2006 respectively, but below their 178p peak in February last year.

Meanwhile, Falkand Island Holdings, with 16.3 per cent of FOGL, has gained 80p to 385p, still around £1 off last year's high. Global Petroleum, with a 14 per cent FOGL stake, is 1.75p up at 9.25p.

FOGL and its backers have distinct speculative appeal – as long as the current talks hook a big fish.