Contract for 3D Seismic Progr

RNS Number : 7469U

Argos Resources Ltd

21 October 2010

 



21 October 2010

ARGOS RESOURCES LIMITED

("Argos" or "the Company")

Argos Signs Contract for 3D Seismic Programme

Argos Resources Limited (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, is pleased to announce the formal signing of a contract for marine seismic acquisition services with Polarcus Limited for the use of the seismic vessel MV Polarcus Asima.

The terms of the contract provide for the acquisition of a substantial 3D seismic survey covering all of the Company's acreage in Licence PL001, as well as adjacent areas. The vessel will be available to commence the seismic survey by early January 2011, and the time required to shoot the survey within the licence area is estimated to be some 50 days.

A contract to process the acquired data will be the subject of a separate invitation to tender, which will be issued shortly. Monarch Geophysical Services Limited has been retained to provide specialist acquisition and processing supervision throughout the 3D seismic project.

Rockhopper Exploration plc (Rockhopper) has simultaneously signed an identical contract with Polarcus, allowing Argos and Rockhopper to share the vessel for acquiring seismic data in each company's adjacent licences and other areas.

Commenting on the signing of the 3D seismic contract, Ian Thomson, Chairman of Argos, said:

"At the time of our listing in July 2010, we stated that it was our aim to secure a seismic vessel to commence shooting in the austral summer of late 2010/early 2011, allowing the possibility to commence exploration drilling as early as the fourth quarter of 2011. Signing this contract secures the front end of this timetable. The MV Polarcus Asima is a state-of-the-art vessel which should ensure an efficient seismic acquisition programme.

We are also delighted to have been able to sign this contract in a co-operative arrangement with Rockhopper. This allows both companies to share mobilisation and demobilisation costs and to capture the technical and cost efficiencies resulting from a larger programme. As a result of these savings, I am pleased to note that Argos should be able to acquire more 3D coverage, over the whole of PL001 and adjacent areas, than originally envisaged at the time of listing."

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 

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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