Update on 3D Acquisition Plan

RNS Number : 7431Y

Argos Resources Ltd

30 December 2010

 



30 December 2010

ARGOS RESOURCES LIMITED

("Argos" or "the Company")

Update on 3D Seismic Acquisition Plans

Argos Resources Limited (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, is pleased to announce that the MV Polarcus Asima seismic vessel is in transit to the Falkland Islands and is expected to arrive within the Company's licence area to commence 3D seismic acquisition in the first half of January 2011.

The Company plans to acquire 3D seismic data over the entire area of Licence PL001, and also intends to acquire additional 3D data in open acreage to the north of the licence. The proposed area over which 3D seismic coverage is planned is shown on a map available to view on the Company website.

The seismic vessel has been contracted in a co-operative arrangement with Rockhopper Exploration plc, who are also participating with Argos in the 3D acquisition in the open acreage.

Commenting on this progress, Ian Thomson, Chairman of Argos, said:

"Argos is on schedule to acquire 3D seismic over our licence area in the austral summer weather window, allowing us the possibility to commence exploration drilling as early as the fourth quarter of 2011.

Extending the 3D programme into open acreage to the north will provide full 3D coverage of the Johnson gas discovery. It will also ensure that any prospects that might extend beyond the licence boundary have full 3D coverage, and it will provide a low cost opportunity to look for additional prospectivity in the northerly continuation of the basin."

For further information:

Argos Resources Ltd ([phone])

www.argosresources.com 

Ian Thomson, Chairman

John Hogan, Managing Director

Evolution Securities Limited ([phone])

Robert Collins

Tim Redfern

Neil Elliot

Adam James

Citigate Dewe Rogerson ([phone])

Martin Jackson

George Cazenove

Kate Lehane

Notes to Editors

1. To view a map of the area of planned 3D seismic coverage, click on the following link: http://www.argosresources.com/operations.asp

2. Argos is an oil and gas exploration company based in the Falkland Islands. The principal asset of the Company is a 100 per cent. interest in Production Licence PL001, covering approximately 1,126km² in the North Falkland Basin (the "Licence Area"). Based on the 2D seismic survey conducted in 1996, seven prospects and five leads have been identified by Argos in the Licence Area. The combined potential of the seven prospects is estimated to be 747 million barrels of unrisked recoverable oil, in the most likely case, and up to 1.75 billion barrels in the upside case. The Licence Area adjoins licence areas being explored by Rockhopper Exploration plc and Desire Petroleum plc, who are undertaking a new and extensive exploration drilling campaign in the North Falkland Basin.

The Company has a strong and experienced management team with significant experience in both the oil and gas industry and the Falkland Islands. The Company's strategy is to undertake a 3D seismic programme during the next austral summer over the prospects identified from the interpretation of 2D seismic data, with a view to better defining those prospects, and potentially identifying new prospects, leading to the selection of possible targets for an initial drilling programme in the fourth quarter of 2011 and in 2012.

Argos was admitted to AIM on 29 July 2010 following the successful completion of a Placing of new shares at 31 pence per Placing Share, raising gross proceeds of approximately £22.0 million.  Argos will use the net proceeds of the Placing principally to finance its planned 3D seismic acquisition and interpretation programme. 

 

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